A gift (дарение) is the most common way property passes from parents to children during their lifetime. It looks simple: one notarial deed, no money changing hands. In practice the decision has a tax side, costs, and several legal consequences that are better understood beforehand than discovered years later.
The provisions below were verified as of October 2026. Amounts are indicative.
A gift of real estate is made by notarial deed before a notary in the area where the property is located, and is entered in the Property Register. The donor must own the property and the recipient must accept the gift. If the property is marital community property, both spouses must consent and sign.
The documents are the same as for a sale: the title deed, a tax valuation certificate, and where needed a sketch, an encumbrance certificate and the declarations the notary requires.
Under the Local Taxes and Fees Act (ZMDT, Art. 44 et seq.), property acquired by gift is subject to a local tax paid by the recipient. The law exempts some relationships and sets rate ranges for the rest:
| Donor — recipient | Local tax (statutory range) | Sofia (city council ordinance) |
|---|---|---|
| Direct-line relatives (parents, children, grandparents, grandchildren — any degree) | none | — |
| Spouses | none | — |
| Siblings and their children | 0.4–0.8% (Art. 47 ZMDT) | 0.7% |
| Everyone else (incl. in-laws, cousins, aunts, uncles) | 3.3–6.6% (Art. 47 ZMDT) | 5% |
The actual rate is set by the municipal council where the property is located and differs between municipalities. The Sofia figures come from the Sofia City Council's local tax ordinance — check the current version before the deal.
Note that a son-in-law or daughter-in-law is related by marriage, not in the direct line. A gift from a mother-in-law to a daughter-in-law is taxed at the "other persons" rate. If the aim is for the property to reach a child's household, a gift to the child directly is usually the cheaper route.
For real estate, the tax base is the value stated in the deed, but not less than the tax valuation (Art. 46 ZMDT). In a gift the parties usually state the tax valuation, which is also the floor.
An example: a brother gives his sister a Sofia apartment with a tax valuation of €80,000. At 0.7%, the local tax is €560. Give the same apartment to a cousin and, at 5%, the tax is €4,000. Give it to a daughter and it is €0.
For real estate the tax is paid before the deed is executed — the notary asks for proof of payment.
The tax exemption does not remove the other costs:
For an estimate, use the notary calculator.
1. Revocation (Art. 227, Obligations and Contracts Act). The donor can ask a court to revoke the gift if the recipient killed or tried to kill the donor (or the donor's spouse or child), falsely accused the donor of a serious crime, or persistently refuses to provide maintenance the donor needs. The claim must be brought within one year of learning of the ground. Under the Supreme Court of Cassation's Interpretative Decision No. 1/2013, refusing maintenance is a ground only where the recipient can afford it without worsening their own position and that of their dependants.
2. Reduction to protect the reserved share (Inheritance Act, Arts. 28–30). Children, the spouse and, in some cases, parents are entitled to a reserved share (запазена част) of the estate. If a lifetime gift infringes it — for example, the whole property given to one of several children — the other heirs can, after the donor's death, ask for the gift to be reduced (Art. 30). The gift stays valid, but the recipient may have to give back part of the property or its value.
3. The donor's creditors (actio Pauliana, Art. 135). If the donor has debts, a creditor harmed by the gift can ask the court to declare it ineffective against that creditor. For a gratuitous transfer, the recipient's knowledge of the harm is not required. A gift made "so the bank can't take the flat" rarely works.
4. A gift with a retained right of use. The donor can keep a lifelong right of use (право на ползване). That protects the donor's home but lowers the property's market value for the recipient. We cover this in a separate guide on selling or gifting with a retained right of use.
This is the most expensive trap. For a gifted property the acquisition price for income tax purposes is zero (Art. 33(6)(3) of the Personal Income Tax Act), and the holding periods for the exemption run from the date of the deed of gift, not from when the donor bought the property. A sale less than three years after the gift can be taxed on almost the entire price. An inherited property, by contrast, can be sold tax-free immediately (Art. 13(1)(26)).
The rules and worked numbers are in our guide to tax on property sales. If the property is co-owned or inherited and needs to be divided, see our guide to co-ownership and division.
| Gift | Sale | Will | |
|---|---|---|---|
| When ownership passes | immediately | immediately | on death |
| Local tax | 0% direct line and spouses; 0.4–0.8% / 3.3–6.6% for others | 0.1–3% (by municipality) | inheritance tax — 0% for spouse and direct line; others above a statutory threshold |
| Notary and registration | yes | yes | on announcement and registration of the will |
| Can it be undone | only by court, on the Art. 227 grounds | no | yes, at any time during the testator's life |
| Heirs' reserved share | can be reduced | not affected if a genuine sale | can be reduced |
| Tax on a later sale | clock runs from the gift; acquisition price zero | clock runs from purchase | inherited property is exempt |
If you are considering a family gift, or selling a property you received as a gift, call us or visit our office. We will review the documents, work out the fees and taxes and point you to a notary.
This is general information, verified as of October 2026, and not legal or tax advice for a specific case.
