A lower price in the Bulgarian notarial deed: what risk are you taking?

A proposal to “put a lower price in the notarial deed and pay the rest separately” is sometimes presented as a technical way to reduce transaction costs. In practice it can create uncertainty around the most basic point of the transaction: what price was genuinely agreed and paid.

A lower stated price does not necessarily reduce local transfer tax

Under the Bulgarian Local Taxes and Fees Act, immovable property acquired for consideration is valued at the agreed price, but where that price is below the statutory tax valuation, the tax valuation is used. Stating a figure below that valuation therefore does not reduce the local-tax base below the valuation.

Notarial fees are also governed by rules on the certified material interest. Before accepting a claim about “savings”, obtain an actual calculation showing which lawful costs would change.

The deeper problem is inconsistent evidence

If the notarial deed records one price, bank transfers show another and the parties later describe a third agreement, a future dispute may turn into a dispute about what was genuinely agreed and paid. This can matter when seeking repayment, rescission, recovery of an alleged unpaid balance or explaining the source and movement of funds.

Do not assume that an informal note will automatically place you in the same position as a transaction documented consistently at its genuine price.

The seller's income tax is a separate question

Where a disposal is taxable under Bulgarian personal income tax rules, the NRA applies statutory concepts of sale price and acquisition value. Deliberately inconsistent transaction documents are not a safe substitute for determining the actual tax treatment. Payment, reporting and anti-money-laundering requirements may also be relevant.

Make all documents describe the same transaction

State the genuine price, currency, bank accounts, payment dates and conditions for releasing each part. If funds are retained, paid directly to a creditor or used to clear a mortgage, document how that payment forms part of the total consideration.

If the goal is to understand lawful transaction costs, calculate the taxes and fees first. Do not replace a transparent transaction with contradictory documents.