Transfer of property by donation

What is the process

The process is a contract by which the donor party transfers and conveys the property for gratuitous use without the transaction being of a material nature. Most often this transaction takes place between relatives. What significantly differentiates the donation of immovable property from the execution of a purchase is the guarantee for the new owner that the property becomes his property free of charge. Thus, regardless of whether the donee is married, the property belongs only to the donee, as opposed to the purchase of property during marriage where the home is owned by both spouses. The gift can also be transferred to minors as long as they are properly represented. The procedure for transferring a property by donation must be carried out before a notary public and necessarily in the district where the property is located. Like any transfer of immovable property, the process is accompanied by documentation that needs to be prepared and submitted by the donor in advance.

Basic costs

• Notary fee

Paid to the notary certifying the transfer of the property by gift, charged on a set scale and paid as a percentage.

• Local tax

In case of donation of immovable property, the local tax shall be determined on the basis of an ordinance of the respective Municipality.

• Recording Fee

The fee for registration and transcripts of the transaction is not less than 10 BGN and is collected by the Registry Agency.

Required documents

• Notarial deed
• Tax valuation certificate of the property
• Power of Attorney
• Certificate of heirs
• Cadastral sketch

What to look out for when transferring property by gift

As with the purchase of a property, the donation of this type of property can spoil the transaction. Annulment can be determined in circumstances where the donee accuses the donor of a crime or the donee refuses to give the donor the maintenance he needs. An action to revoke a gift  may be brought by the donee within one year of learning of it.