Property tax assessment: what is it for and how is it issued?

Updated on October 19, 2026

The price of a home may be the result of months of negotiations. The documents for the notarized transfer also contain another value, determined without physical inspection or negotiation: the "tax valuation" (or tax assessment value). This figure does not represent the property's market value; rather, it indicates how the property is valued for tax purposes and whether there are any outstanding taxes owed on it. When a standalone garage or another separate unit is also being sold, it must be clear exactly what the issued certificates cover. These certificates are issued by the municipality where the property is located; in Sofia, they can be requested in person at a service counter or online.

What does a property's tax valuation indicate?

A property's tax valuation is a value determined according to the rules set out in the Local Taxes and Fees Act. For residential properties owned by individuals, the municipality takes into account characteristics such as type, location, area, construction, and depreciation. The annual real estate tax is calculated based on this tax valuation.

A certificate is issued for the transaction, which also specifies whether there are any outstanding tax liabilities associated with the specific property. This is not a certificate of ownership, nor does it encompass all of the seller's public financial obligations. Furthermore, it does not replace a market valuation, which considers the property's condition, location, and market demand at a specific point in time.

When is it required and how does it affect costs?

A tax valuation certificate is prepared for sales, donations, and other transactions involving real rights (property rights) over real estate. It is also part of the verification process when registering a mortgage. However, the mere act of applying for a mortgage loan does not mean that this certificate is required at every stage of the bank's procedure.

In a standard sale-purchase transaction between private individuals, the local acquisition tax is calculated based on whichever is higher: the agreed price or the tax valuation. If a property is sold for 800,000 euros, but its tax valuation is 200,000 euros, the tax base is 800,000 euros. If the agreed price is lower than the tax valuation, the tax valuation is used as the base.

Tax valuation, market value, and the agreed price address different aspects. The first is calculated administratively. The second is an expert assessment of the potential price. The third is the actual amount for which the parties conclude the transaction. The deed (notarial act) must state the actual agreed price. Recording the tax valuation instead—with the aim of reducing costs - creates legal and tax risks.

How is a tax valuation issued and what documents are required?

An application for a tax valuation is submitted to the municipality where the property is located, typically at the "Local Taxes and Fees" department. It is most commonly submitted by the owner or their authorized representative. In the case of inherited property, a certificate of heirs must be provided. The specific set of documents required depends on the individual case and the information already held by the municipality.

In the Sofia Municipality, a request must be submitted using a standardized form. The described procedure requires a document of ownership (where applicable) and a notarized power of attorney in cases involving representation. For a declared property on which taxes and fees are paid, the municipality explicitly states that the owner need not attach any additional documents to the application. A practical first step is to check the specific property record and the municipality's requirements, rather than gathering the same set of documents for every transaction.

If you prefer to request a tax valuation of a property online, in Sofia this can be done via the electronic services portal. Applications may also be submitted in person at a service counter. The issued document can be collected in person, received by mail, or delivered electronically through the secure electronic delivery system. For unfinished construction, the procedure entails additional requirements, including details regarding the stage of completion. In such cases, it is advisable to begin preparations well in advance.

How long does it take, what is the fee and how long is it valid?

As of September 2026, the Sofia Municipality offers three processing timeframes with corresponding fees for the issuance of a tax valuation: a standard service (5 days) for 17.38 EUR, an expedited service (3 days) for 26.08 EUR, and an express service (1 day) for 34.77 EUR. Fees and submission procedures in other municipalities should be verified separately.

The validity of a tax valuation is tied to the calendar year. A certificate issued on or before June 30 remains valid until June 30 of the same year. A document issued after June 30th is valid until December 31st of the same year. There is an important exception: if the property taxes for the entire year have been paid and this is noted in the certificate, it remains valid until December 31st, regardless of when it was issued. If the signing is rescheduled from June to July, verify whether the document can still be used.

What should you check before the execution of the notarial deed?

Compare the data in the certificate with the title deed and, where applicable, with the cadastral map or sketch. Pay attention to the owners and their respective shares, the address, the identifier, the area, and the description of the properties. Discrepancies in the administrative address or the area cannot be resolved by mere assumption; the cause must be clarified promptly with the municipality and the notary.

In the case of high-end real estate, the subject of the sale often extends beyond the residential unit itself. A garage may constitute a separate legal unit; parking rights may be linked to fractional ownership shares or a specific usage arrangement. Verify that the tax certificates cover all the individual units being transferred. Separately, cross-reference the rights pertaining to terraces, storage units, yards, and parking spaces against the title deeds. The number of certificates required depends on the specific structure of the transaction.

The certificate indicates the tax liabilities associated with the property. Additionally, the notary conducts an electronic check via the National Revenue Agency (NRA) to determine whether the transferor has any outstanding public liabilities subject to compulsory enforcement. If such liabilities are identified, they may be settled prior to the transaction or—with the debtor’s written consent—paid off from the sale proceeds in accordance with the law. A liability is not "transferred" to the buyer simply because they acquire the property.

Frequently Asked Questions

Is a tax valuation required for the preliminary contract?

In the context of a sale, the checks required under Article 264 of the Tax and Social Security Procedure Code (TSSPC) are performed for the notarial transaction itself, rather than for the signing of a preliminary agreement. Nevertheless, conducting an early check can be beneficial when multiple properties are involved or when the parties plan for a delayed closing. For the execution of the notarial deed, a document valid as of the date of the transaction will be required.

Do I need to submit a declaration under Article 14 of the Local Taxes and Fees Act (LTFA) after a purchase?

In the case of a standard acquisition via a notarial deed, the municipality opens the tax account (tax file) automatically, based on information received from the notary and the Registry Agency. Do not assume that the old rule—requiring a declaration after every purchase—still applies. Different declaration rules apply in cases of inheritance or certain changes in circumstances.

What happens if the seller is an heir but is not listed in the municipal tax account?

Verify whether the municipality has the relevant inheritance data on record, and submit a Certificate of Heirs. As a general rule, an heir is required to submit a declaration under Article 14 of the LTFA within six months of the opening of the succession (the date of death). If the tax account has not been updated, clarify with the municipality what steps and documents are required before scheduling the notarial transfer.