How to read a developer offer in central Sofia - price, area, payments and hidden costs 2026

Two apartments with the same listed price may cost differently if one includes VAT and the other does not, if areas are calculated by different standards, or if hidden costs are not mentioned. Here is how to read an offer critically, what to ask before signing a preliminary contract, and where unpleasant surprises most commonly hide.

The price: with or without VAT

The first and most important thing to establish is whether the listed price includes VAT. For new-build property in Bulgaria, a VAT-registered developer charges 20 percent VAT on the sale price. Some list prices with VAT included, others without. The difference on a 200,000 euro apartment is 40,000 euros. Always request written confirmation. At Pirotska Residence, prices are shown excluding VAT, so the buyer must add 20 percent VAT to the final calculation unless a specific offer states otherwise. At other developers it may not be the case.

What a price excluding VAT means in practice

At a listed price of 2,500 euros per sqm excluding VAT, the real price is 3,000 euros. For an apartment of 65 sqm net area, the difference is 32,500 euros. This amount is sufficient for full furnishing or for covering the mortgage down payment. It is not a mistake for developers to list prices without VAT, as long as it is clearly indicated. The mistake is the buyer's if they do not ask.

Area: net, gross and built-up

Net area is the area inside the apartment, measured from the inner face of the walls. This is the area you actually inhabit. For a typical one-bedroom in central Sofia, net area is 55 to 70 sqm.

Gross area includes net area plus the proportional share of common areas: staircase, corridors, entrance hall, lift shaft, technical rooms. The common area percentage varies between 10 and 25 percent depending on the project. At 15 percent common areas, a 65 sqm net apartment has approximately 75 sqm gross area.

Built-up area is the measure used in the cadastre and notarial deed. It includes external walls to the midpoint of shared walls. Built-up area is typically 5 to 10 percent larger than gross area.

Why area matters when comparing offers

If Developer A quotes 2,500 euros per sqm net area and Developer B quotes 2,200 euros per sqm gross area, which is cheaper? It depends on the common area percentage. At 15 percent common areas: Developer A offers 65 sqm net for 162,500 euros. Developer B offers 75 sqm gross (approximately 65 sqm net) for 165,000 euros. Developer A is cheaper despite the higher per-sqm price. Always compare on a net area basis.

The preliminary contract: essential elements

The preliminary contract is legally binding and fixes the purchase terms. Do not sign without legal review. Mandatory elements include: exact property identification (cadastral number, floor, apartment number, net and gross area), total price with VAT in euros, payment schedule with specific dates or milestones, completion deadline with penalty clause, handover standard (shell or turnkey), and termination conditions.

After Bulgaria joined the eurozone on 1 January 2026, all prices must be stated in euros. Pre-existing contracts in leva are automatically converted at the fixed rate of 1.95583 BGN per 1 EUR.

Red flags in preliminary contracts

Be cautious if the contract: provides no specific completion date, includes no penalty for developer delays, requires full payment before construction is completed, lacks exact property identification, or contains a clause allowing the developer to unilaterally change the price. None of these is acceptable. Consult a lawyer before signing.

Staged payments and their logic

The standard structure is: 30 percent at preliminary contract, 30 percent at Act 14 (completed structure), and 40 percent at notarial deed. This protects both parties. Alternative structures include 20-30-50 and 50-50 for buildings at advanced stage. For mortgage buyers, the bank disburses at the notarial deed, so only the early instalments come from personal savings. For a detailed analysis of mortgage terms, see mortgage for an apartment in central Sofia 2026.

Hidden costs not shown in the offer

Local transfer tax: 3 percent in Sofia. For a 200,000 euro apartment: approximately 6,000 euros.

Notary fee: By tariff, proportional to value. For 200,000 euros: 800 to 1,500 euros.

Registration fee: 0.1 percent: 200 euros.

Legal fee: 400 to 800 euros for contract review and presence at notarial deed.

Bank fees for mortgage: Valuation (150 to 300 euros), processing fee (0.5 to 1 percent), insurance (200 to 500 euros annually). Up to 2,000 euros in the first year.

Turnkey finishing (if not included): 250 to 500 euros per sqm. For 65 sqm: 16,250 to 32,500 euros.

Total hidden costs without finishing: 4 to 6 percent of the price. With finishing: up to 20 percent. These amounts must be included in the budget from the outset.

Document checks before purchase

Before signing the preliminary contract, verify: the building permit (valid and not under appeal), land ownership (whether the developer is the actual owner or has building rights), encumbrances and mortgages on the property, the approved architectural project and structural assessment. These checks are performed by a property lawyer and cost 400 to 800 euros. Failure to conduct them could cost tens of thousands if the construction turns out to be illegal or the land is encumbered.

Warranties and defect claims

Under Bulgarian law, the developer is liable for hidden structural defects for 10 years and finishing defects for 5 years. The warranty covers: roof and facade leaks, cracks in load-bearing elements, communal installation defects, and waterproofing failures. At Pirotska Residence, the defect claim process is formalised and includes inspection, assessment, and a remediation timeline. For details on warranties and the legal framework, see our analysis of warranties, Act 16 and defect claims.

Location within central Sofia

Central Sofia is not a homogeneous zone. New-build prices vary by micro-location: the area around Vitosha Boulevard and Graf Ignatiev Street is most expensive at 2,800 to 3,500 euros per sqm. The zones around Pirotska, Positano, and Opalchenska streets offer a balance between central location and more accessible pricing at 2,200 to 2,800 euros per sqm. The periphery of the centre (Lozenets, Oborishte) is between 2,000 and 2,600 euros per sqm.

After Bulgaria's eurozone accession on 1 January 2026, foreign buyers have easier access to the market, which supports demand in the centre. Browse current listings from TV Property and contact the team for a personalised calculation based on your requirements and budget.