Bulgarian municipalities sell property they hold as municipal private property — most often plots, garages, shops and other premises. The core rule is in Article 35(1) of the Municipal Property Act: a sale follows a municipal council decision and takes place by public auction or a publicly announced competition, organised by the mayor.
For buyers this is a chance to acquire property at a market price, with no agent on the seller's side. But the procedure is formal: a missed deadline or a missing document means exclusion. Here is how it works.
The starting price is not arbitrary. Municipal property is disposed of at market prices, but not below the tax valuation, based on a valuation by a licensed appraiser (Article 41(2) of the Act, mirrored in municipal ordinances). The municipal council approves the price, and the auction starts from it.
That means the starting price is usually close to market value. The final price is set by the bidding.
Each municipality publishes the order and the notice on its website — in Sofia, in the auctions and competitions section of sofia.bg. The notice contains everything essential: the property, the starting price, the deposit, the bidding step, the deadlines and the venue.
An example from Sofia Municipality, auction No. 1-СО-2026:
| Item | Value |
|---|---|
| Property | land plot of 195 sq m, Gnilyane, Novi Iskar district, low-rise residential zone |
| Starting price | €11,964.23 excl. VAT |
| Deposit | €1,196.42 (10% of the starting price) |
| Bidding step | €1,196.42 (10%) |
| Tender documents | €10 |
| Auction | 11 May 2026, 3 Pariz St, Sofia |
Figures are taken from the notice and only illustrate the structure — every auction has its own terms.
1. Buy the tender documents. They are mandatory — without proof of purchase you are not admitted. They contain the draft contract, payment terms and the list of required documents. Read them in full.
2. View the property. The notice names an official and a phone number for viewings, with a deadline — usually a few days before the auction. Don't bid on a property you haven't seen.
3. Pay the deposit. By bank transfer or at the cash desk only, by the stated time and quoting the auction number. A late deposit means no participation.
4. File your application in a sealed envelope. Typically required: proof of payment for the documents, proof of the deposit, declarations on the prescribed forms and a notarised power of attorney if someone represents you. Companies declare that they are not insolvent or in liquidation.
5. The auction. In an open auction each bidder confirms the starting price, and the price then rises by the step — under Shumen's ordinance, for instance, the step is between 1% and 10% of the starting price. The highest bid wins. If only one bidder turns up, many ordinances let them win at a price no lower than the starting price. If nobody confirms the starting price, the deposits are usually forfeited.
6. Order, payment and contract. The mayor issues an order naming the winner. The winner's deposit is offset against the price. Payment follows within the deadline in the documents — in Shumen, for example, 14 days for the taxes and fees due, after which the contract is signed within 7 days. The contract is signed with the mayor and entered in the Property Register.
The municipality sells the property as it is. The checks are your responsibility:
A municipal auction is not the same as a public sale by a court enforcement officer. Those follow the Civil Procedure Code, with a deposit and written bids, and the risks are different — see our guide to buying at a bailiff's sale.
If you own a legally built building on municipal land — for example under a right to build — you can buy the land without an auction under Article 35(3) of the Act, by applying to the mayor, at a price based on a market valuation. How the right to build works is explained in our superficies guide.
General information, not legal advice. Specific deadlines, deposits and fees are set by each municipality's ordinance and the tender documents. Verified November 2026.
If you are considering a municipal auction and would like us to check the property and the documents before you bid, call us or visit our office.
