Tax value of the property in Bulgaria – what you need to know

It is impossible to sell an apartment or house in Bulgaria without a tax assessment certificate for the property. The document can be ordered through a real estate agency or by the owners. You will prepare a sale of your apartment in Burgas, Nessebar, Sunny Beach, Sozopol and other cities faster and easier with the Apart Estate assistance. We know all the pitfalls of this process and are ready to share our knowledge with you. So, today we will talk about such an important document as a tax assessment certificate for real estate in Bulgaria.

What is a tax assessment certificate

These days, owners of real estate all over the world have to pay property taxes. This is true for the owners of studio apartments, flats and houses. This tax is calculated annually; in Bulgaria, the payment must be made before October 31 of the current year. You can pay the entire amount at once or split it into two payments.

The amount depends on the property value, which in turn is calculated based on the location of the apartment or house in Bulgaria, its area and market price.

Each apartment has its own tax value. It is indicated in a special document – a tax assessment certificate.

An ordinary apartment owner who uses it for permanent or short-term residence does not particularly need this document. However, if you are thinking of selling property, it is necessary to obtain it, as it is the basis for calculating sales tax. Without this certificate, no notary will accept documents for the sales deal.

The certificate is issued not only for real estate which already has Act 16, but also for property that is under construction.

The document has an expiration date. If it was issued in the first half of the year, it will be valid until June 30 of the current year. A certificate dated after June 30 will be valid until December 31 of the current year.

Where to order a property tax assessment certificate

You can order the document from the tax authority responsible for the municipality where your property is located. If you live in Burgas, Pomorie, Nessebar, then you need to contact the tax authorities of these cities.

If the apartment is located in Sunny Beach or the village of Ravda, you will have to go to Nessebar to get the certificate.

For an apartment in Ahtopol, Lozenets, Varvara or Tsarevo, the document will need to be obtained in the city of Tsarevo.

Real estate in Primorsko, Kiten, Yasnaya Polyana is registered in the city of Primorsko. If it is located in Sozopol and Chernomorets, then apply to the tax authorities of Sozopol.

Certificate issue timeline and price

The standard time necessary for issuing a tax assessment certificate, provided the necessary documents are submitted, is 5 working days.

However, most tax authorities can issue the document within 3 business days or within 24 hours. In the latter case, if the certificate was ordered before noon, it will be possible to receive it before the end of the same working day. A document ordered after 12.00 will be ready before noon the next day.

Issue timeline affects the price. The fee for a document to be issued within 5 working days is 10 BGN. If it is issued within three days, you will have to pay 20 BGN. Urgent production up to 24 hours will cost 30 BGN.

Payment is made when ordering a certificate at the tax office in cash or by card, by bank transfer or online.

Who can order a tax assessment certificate

There is a strictly defined list of persons who can order a tax assessment certificate in relation to certain real estate:

• Property owners.
• Legal representatives of the owner, acting on the basis of a power of attorney. These could be relatives or representatives of a real estate agency.
• A person who has the right to purchase state or municipal real estate.
• Heirs. 
• A person who draws up a will for an apartment or other real estate.

What documents are required for ordering a certificate?

The main document that must be submitted to obtain a tax assessment certificate for real estate is a Notary Act. This Act is the document that confirms ownership of the property.

The tax office will also give you an application form to fill out.

In different situations, however, other documents may be required:

• If someone else asked you to order a certificate, you need to present a notarized power of attorney confirming your right to represent his/ her interests in the tax authorities.
• If you are an heir, do not forget the certificate of heirs issued by the municipality. 
• When ordering a certificate for an apartment under construction, attach a protocol indicating the level of its readiness. This document is usually issued by the district or municipal administration.

What to pay attention to

The tax value certificate is issued in two copies. Both are originals. One original must be presented to the notary who registers the transaction. The second must be handed over to the buyer for registering the property with the Registration Agency.

Be sure to check all information when submitting your application. It must correspond to the Notary Act. Check the area, address, whether additional premises, for example, a basement, are indicated.

It is necessary to clarify the owners of the property. There are situations when the apartment is owned by spouses who bought it during marriage, and only one of them is indicated in the Notary Act. Both spouses must be named on the application for a certificate.

If you want to sell or buy property in Bulgaria in Burgas, Sozopol, Nessebar or other resorts in the Southern Black Sea region, contact the Apart Estate real estate agency. Our specialists will help you prepare documents, find a buyer or select the best option for an apartment or house to buy.