Car Transfer: A Complete Guide to Changing Vehicle Ownership

Transferring ownership of a car in Bulgaria is a process that involves changing ownership, signing a sale agreement, visiting a notary, registering the vehicle at the Traffic Police, and several other administrative steps. Whether you are buying or selling a vehicle, it is important to be familiar with all the stages, responsibilities, and costs involved.

In this article, we will go step-by-step through the car transfer process, what documents are required, how much it costs, what taxes are due, and the role of liability insurance and license plates.

1. Preparation for the Deal: Legal Check and Car Condition

Before going to notarize the agreement, it is advisable for the buyer to conduct a legal check on the vehicle:

Verify the Vehicle Identification Number (VIN);
Check for any liens, encumbrances, or pledges;
Review the car’s history (accidents, repairs, service campaigns);
Check the vehicle’s registration status at the Traffic Police (KAT) for unpaid fines.
The seller must be the actual owner of the vehicle or authorized with valid inheritance documents if the vehicle is being transferred by inheritance.

2. Signing the Purchase-Sale Agreement

The transaction is conducted through a purchase-sale agreement, which must be signed and notarized by a notary public registered in the seller’s place of residence.

Necessary documents:

ID cards of both parties;
Large and small vehicle registration certificates;
Paid road tax receipt;
Vehicle registration certificate;
Declarations under Art. 264, para. 2 of the Tax and Social Security Procedure Code (confirming no outstanding debts to the National Revenue Agency - NRA).
Once notarized, the notary will submit the information to the electronic register of the Traffic Police (KAT), but the responsibility for registering the vehicle lies with the buyer.

3. Registration at the Traffic Police (KAT)

After the deal, the buyer has a 7-day period within which to submit an application at the Traffic Police to register the new owner. If the buyer fails to do so within this period, it is considered an administrative violation.

Documents for registration:

Application form (filled out on-site);
Notarized purchase-sale agreement;
ID documents of the new owner;
Old registration certificates (large and small);
Receipt for paid fees;
Paid environmental tax (for the first registration in Bulgaria).

When transferring ownership, the vehicle license plates must be changed unless the car remains registered in the same municipality.

4. Change of Liability Insurance (Civil Liability)

It is mandatory for the new owner to sign a new civil liability insurance policy, as the old one automatically becomes invalid after the transfer. If the vehicle does not have valid insurance, it cannot be driven on the roads.

I&G Brokers recommends arranging the new insurance policy before registering the car at KAT to avoid penalties and save time.

5. Vignette and Additional Liabilities

Vignette Sticker: When the ownership of a vehicle is transferred, the electronic vignette is not automatically transferred to the new owner. To transfer it, the new owner must submit an application to the Road Infrastructure Agency (API). The application can be submitted by the new owner or the user of the vehicle through the agency's office or the National Toll Administration (NTA). The form for the application is available on the official API website.
Road Taxes: The seller owes taxes up to the notarized transaction, after which the obligation passes to the buyer.
Technical Inspection: If the vehicle does not have a valid inspection, it must undergo one after registration.

6. Special Cases for Car Transfer by Inheritance

When the vehicle is part of an inheritance, the following documents must be provided:

Certificate of heirs;
Notarized declaration of acceptance of inheritance;
Notarized power of attorney if another heir is acting on behalf of all heirs.
The procedure remains the same, but the notary will request additional documents to prove the right to inherit.

7. Prices and Fees for Car Transfer

The price for transferring a car depends on:

Notary fee: approximately 0.8% of the transaction value (based on the tax assessment or actual price);
Registration fee at KAT: around 30-60 BGN;
Environmental tax: between 50 and 300 BGN (depending on the type and year of the vehicle);
Civil liability insurance: varies depending on engine capacity, the driver's age, and the insurer.

8. Risks and Tips for a Car Transaction

There are risks of fraud in the car market. To avoid them:

Perform the transaction only with a notary public;
Do not pay an advance without a contract;
Verify the ownership and history of the vehicle;
Do not sign blank forms or declarations.
If in doubt, consult a specialist or an insurance broker who can conduct additional checks.

Conclusion

Transferring ownership of a car is not just an administrative formality, but a serious legal act with significant consequences. Following the procedure – from notarizing the agreement, registering with KAT, to signing civil liability insurance – ensures that both the seller and the buyer are protected from future disputes or penalties.

The I&G Brokers team is here to help if you need:

A competitive civil liability insurance policy;
Advice on registering with KAT;
Assistance with car transfer in cases of inheritance, donation, or sale.