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bulgarian property tax

20% of the income is regarded as non-taxable. Done this way, there is no Capital Gains tax to pay. Property tax covers the cost of registering the title deeds with the municipality and is equal to 0.15 per cent of the purchase price. If you work as an employee with only a labor contract, you are not required to submit a tax return. The income tax is regulated by the Bulgarian personal income tax law. The rate on capital gains from securities is equal to one half of the applicable rate as per the national legislations of Bulgaria and Israel. It shouldn't be a lot of money, and would certainly amount to far less than the tax for a similar property in Western Europe or the British Isles. But a longer holding period often results in no capital gains tax being payable. Bulgarian taxable persons are obliged to keep a special register of their CFCs, containing a list of information as laid down in the legislation. For a house with yard in a village the total payment would be 5-6 BGN per year. A foreign domiciled person is subject to inheritance tax only on property … As part of the Nyama Problemi Ltd group of sites, it was determined a real need for a property repair service covering the smaller repairs. The transfer of Bulgarian real estate is subject to a transfer tax @2% plus a State Entry fee of 0.1% of the purchase price (Notary Deed price). Brief information on taxation is provided within the Living in Bulgaria guide. The Bulgarian Constitution does not allow foreign individuals to acquire land until 2012. This system has the information structured on two sections, depending on its user: an administrative section and one customer section. Our skill set covers all areas of work from Electrics to Bathrooms and roof repairs. A notary public charges for preparing the preliminary contract and notary deed and for any checks he makes on a property. Selling your Bulgarian property Selling your house, land or apartment is a very important action, particularly if it is owned by a domestic registered limited liability company in your name. The governing legislation in Bulgaria regulating the legal aspects of the subject is the Bulgarian Inheritance Act (Bulgarian: Закон за наследството). The transfer of Bulgarian real estate is subject to a transfer tax @2% plus a State Entry fee of 0.1% of the purchase price (Notary Deed price). The value of deceased’s property is defined in the local currency, Bulgarian Leva (BGN), in the following manner: Moreover it will make owners of small plots sell or re-allot with others. Annual company accounts and tax returns for Bulgarian Ltd. 27.03.2017. Ongoing property taxes: Bulgarian Income Tax: For non-resident individuals, the applicable tax on rental income will depend on whether the tenant is an individual or a company. In many countries a holding period of less than 5 years results in capital gains being taxable. Some rural properties are billed as little as 15 Euros / year, other regular size Sofia apartments will typically be 150 Euros / year. However, the foreign individual can purchase the land via a Bulgarian registered company. The VAT rate in Bulgaria is 20%. It is not their sole or principal residence. Depending on the type of tenant, the tax is paid in different ways: V. Inheritance tax Property inherited by a spouse or heirs of a direct line is tax exempt. m the property tax plus waste-collection fee is 20 BGN . Heirs at law or by will are required to pay inheritance tax except from the surviving spouse and heirs in direct line. Obtaining a Bulgarian ID card is a precondition to be granted tax residence of Bulgaria. The taxable base for Bulgarian inheritance tax is equal to the value of the inherited property (e.g., an apartment, shares of a company, and a car). According to officials taxes on farm land will revitalize the market for this type of estates. It is not their sole or principal residence. It provides some information on its website in English. The tenant pays this tax over to the Bulgarian Authorities, quarterly, on your behalf. The cheap Bulgarian property market attracts many investors from all over the world. It includes a 0.15% Inhabited house duty and a 0.16% Waste Collection duty. If you buy a property with land in Bulgaria, you must form a limited company and pay corporation tax. Heirs at law or by will are required to pay inheritance tax except from the surviving spouse and heirs in direct line. Inheritance Inheritance of direct descendants is not taxed. Bulgarian inheritance tax is levied on property exceeding BGN 250,000 (approximately EUR 125,000) and amounts to 0.7% for property inherited by brothers, sisters and their descendants, and 5% - for other heirs.] Withholding tax is levied on: Any dividends and shares in a liquidation surplus, as distributed (apportioned) by any resident legal person in favour of: Currently foreign ownership of land is not possible in Bulgaria although this is set to change in 2014. As we told the income tax rate is 10% and you have to submit an annual tax return. A flat tax rate of 10% applies to all personal income, with some exceptions. The exact percentage depends on the local Municipality. If you want to know more or withdraw your consent toall or some of the cookies, please refer to the Privacy Policy, Buying a quality property preserves the capital, Obligations for Companies without activity in Bulgaria 2018, Bewitched by Bulgaria's Rhodopes mountains. The last time the basis tax value was recalculated was in 2002.This makes Bulgaria the country with lowest property tax in the whole European Union. Every owner is liable to pay annual municipal property tax to the government. Bulgaria Tax Residency. If the tenant is a Bulgarian company, the tenant withholds tax @ 10% from gross rents with no deduction for costs. Bulgarian Income Tax : For non-resident individuals, the applicable tax on rental income will depend on whether the tenant is an individual or a company. Nevertheless, the WHT rate may not … If the real estate and/or the movable property are owned by more than one person, the income is divided in proportion to the participation in the ownership. Bulgaria outcompetes other EU member states by offering the best of both worlds and offers fabulous opportunities for both companies and individuals. Any subsequent property sold in the same year will attract around 10% tax on any profit made. The tax legislation in Bulgaria includes the principles of establishment and functioning of the tax system. Some rural properties are billed as little as 15 Euros / year, other regular size Sofia apartments will typically be 150 Euros / year. Invest in property which he purchases as an individual. These assumptions are critical. Bulgaria-domiciled individuals are subject to inheritance tax on inherited property both located in Bulgaria and abroad. Fraud Everybody who set up a company for the purpose to buy real estate in Bulgaria ( house, land, apartments, etc) have to declare... 25.10.2016 Bulgaria- one of the most preferable destinations to buy holiday residential property If you work as an employee with only a labor contract, you are not required to submit a tax return. Incorporates a company in Bulgaria and the entity owns the property. Transfer taxes: Verila 5 1463 Sofia, Bulgarien Tel: (+359) 2 868 45 99 E-Mail: office@ruskov-law.eu In many countries a holding period of less than 5 years results in capital gains being taxable. These assumptions are critical. As we told the income tax rate is 10% and you have to submit an annual tax return. In english it is " tax house" . You reside in Bulgaria for not less than 183 days annually or 2. The income tax is regulated by the Bulgarian personal income tax law. If the tenant is a Bulgarian company, the tenant w ithholds tax @ 10% from gross rents with no deduction for costs. Every owner is liable to pay annual municipal property tax to the government. footage and the floor, the year and the type of the construction, extras in the interiors etc. Income tax on individuals is 10%. Bulgarian Transfer Fees. This website or its third party tools use cookies, which are necessary to its functioning and required toachieve the purposes illustrated in the cookie policy. The request for issuing this paper could be submitted only by the owner of the property or his legal attorney. A new VAT Act was published in 2007. Agricultural land is exempt from all local taxes. However in Bulgaria property prices show growth of more than 20% every year. Most foreigners buying property in Bulgaria must form a limited company to purchase land, so they will be subject to corporation tax. BULGARIAN PROPERTIES™, BULGARIANPROPERTIES.COM™ and the logos are trade marks of Bulgarian Properties Ltd., registered in Bulgaria under VAT#BG131164582 with address: 22, Zlaten Rog Str., Sofia 1407, Bulgaria. If the tenant is a Bulgarian company, the tenant w ithholds tax @ 10% from gross rents with no deduction for costs. Once you purchase a property in Bulgaria you have to declare it in the local Tax services. Ongoing property taxes: Bulgarian Income Tax: For non-resident individuals, the applicable tax on rental income will depend on whether the tenant is an individual or a company. Withholding tax is deducted by the buyer of the property and paid over to the Bulgarian Tax Authorities by the end of the month following the end of the quarter in which the change of ownership took place (the Notary Deed date is to be considered as the date of the transaction). The VAT rate in Bulgaria is 20%. The Bulgarian tax authority is the National Revenue Agency. Brief information on taxation is provided within the Living in Bulgaria guide. Every owner of a building or a plot is obliged to pay annual property tax. Once you have established a Bulgarian company, you have to do an annual company tax reports and declaration. Option to pay per Job or time spent. This transliterates to danŭk kŭshta. To get around this investors wanting to buy a house or villa must first set up a Bulgarian registered company. These are different in value and depend on the size of populated area and its situation in the country, the neighborhood, the sq. The rule of thumb: sell one property per year tax free. Corporation tax has been cut several times in the past few years by the Bulgarian government to encourage inward investment and now stands at 15 per cent. If you sell a property in Bulgaria and you have a switched-on agent, it should be declared as your single and sole Bulgarian residence. Tax on purchase: Once you have established a Bulgarian company, you have to do an annual company tax reports and declaration. Personal Income Tax- 10% (flat rate taxation) Mandatory Social Security Contributions Employer: - 17.4% Employee: - 12.9% Maximum monthly taxable base - BGN 2,000. There is a double taxation agreement between the Bulgaria and Ireland / the UK so relief for certain Bulgarian taxes will be given against Irish/ UK taxes payable on your Bulgarian income. You will also be obliged to file a tax return detailing your worldwide income in your home (tax resident) country. Law firm Ruskov & Kollegen ul. The governing legislation in Bulgaria regulating the legal aspects of the subject is the Bulgarian Inheritance Act (Bulgarian: Закон за наследството). The most common mistakes made when buying a property in Bulgaria can be summarized as: Paying a deposit to reserve a property. You are considered tax resident in Bulgaria if you spend at least 183 days there per year or if your main resident home is located in Bulgaria. As part of the Nyama Problemi Ltd group of sites, it was determined a real need for a property repair service covering the smaller repairs. Verila 5 1463 Sofia, Bulgarien Tel: (+359) 2 868 45 99 E-Mail: office@ruskov-law.eu These have no reason to be expensive whilst still effective. Other taxes Real estate annual tax - 0.01%- 0.45% Transfer tax - 0.1%- 3.0% • The rate is set by each municipality according to … Bulgarian Property Taxes. Bulgarian VAT Any rental income you have from the property is subject to 15% Bulgarian withholding tax. The property was worth US$250,000 or 250,000 at purchase. You are considered tax resident in Bulgaria if you spend at least 183 days there per year or if your. Option to pay per Job or time spent. The tax year runs from 1 January - 31 December. This must be done in 3 month period after the purchase date. The withholding tax regime is regulated in Articles 194-203 of the Corporate Income Tax Act. The buying process varies in Bulgaria depending on whether you buy an apartment or a landed property. The tax evaluation price is calculated with a formula that includes a basis tax value per sq m and correctional coefficients for location, quality of infrastructure, individual characteristic, height and age of the property. Once you have established a Bulgarian company, you have to do an annual company tax reports and declaration. Bulgarian residents in the US: Bulgarian citizens working in the United States must comply with the appropriate visa requirements, labour and tax laws. Done this way, there is no Capital Gains tax to pay. In addition to the real estate tax, owners also pay waste-collection fees unless they are unsubscribed from it. Non-residents are taxed in Bulgaria on income arising from Bulgarian sources only. The tax amount varies from 0.10% to 0.15% of the tax evaluation price of the property. To obtain Bulgarian tax residency you are not required to stay for 183 days in Bulgaria. Everybody who set up a company for the purpose to buy real estate in Bulgaria ( house, land, apartments, etc) have to declare annual company tax reports every year. Transfer tax – Transfer tax is imposed on the sale or exchange of immovable property and motor vehicles, at rates ranging from 0.1% to 3%, determined by the municipality. 20% of the income is regarded as non-taxable. To get around this investors wanting to buy a house or villa must first set up a Bulgarian registered company. These taxes are due by March each year with liability for the previous year. Bulgaria-domiciled individuals are subject to inheritance tax on inherited property both located in Bulgaria and abroad. Double Tax Treaties generally do not provide relief for this tax. Bulgaria applies a worldwide income tax system and residents are taxable on their worldwide income. For more details see the Data FAQ We offer services to acquire and conclude your tax bill for you for an administrative charge of 50 Euros + the tax … A foreign individual who decides to invest in property in Bulgaria has two options: Transactions with the underlying plots of the buildings are subject to the same rules. For a flat in a quarter in Bourgas with 45 sq. Certain exemptions apply, among them that profits of CFCs with substantive economic activity will not be subject to Bulgarian tax. The investors should be aware that the tax evaluation price is times less than the market one. 2. Bulgaria also levies the lowest flat personal income tax rate of 10%. For a solid house, 90 sq.m area in the Super Center Zone in Bourgas the annual real property tax is around 55 BGN and the waste collection fee is 60 BGN. 1. If the real estate and/or the movable property are owned by more than one person, the income is divided in proportion to the participation in the ownership. The fine is also very small. The withholding tax is levied on the gross amount of the rental income and no expenses can be deducted. For more details see the Data FAQ You submit a standard form along with a copy of your notary deed. ... Bulgarian Property Insurance. In total the employee pays 12.9% and the employer contributes what corresponds to 17.9%. If you sell a property in Bulgaria and you have a switched-on agent, it should be declared as your single and sole Bulgarian residence. Bulgaria applies a worldwide income tax system and residents are taxable on their worldwide income. Additionally, in 1997 the government of Bulgaria began paying closer attention to the transactions of foreign companies who were doing business within Bulgaria. Local Property Tax (Rates): are payable quarterly and vary per region / Municipality. For example the annual property taxes and the annual garbage taxes for a property in a big Bulgarian city or in a resort area are 50-70 EUR. This system has the information structured on two sections, depending on its user: an administrative section and one customer section. Several European countries apply an attractive corporate tax regime but tend to neglect the personal income tax aspect. Explanation and practical tips. For all other beneficiaries, the inheritance tax rates vary, depending on the relationship between the donor and the heir. The real estate market in Bulgaria in the current 2019 has been really dynamic. For a solid house, 90 sq.m area in the Super Center Zone in Bourgas the annual real property tax is around 55 BGN and the waste collection fee is 60 BGN. The property was worth US$250,000 or 250,000 at purchase. The flipside is that Bulgarian property is now remarkably affordable and probably appropriately priced. use (also known as Act 16) has been issued prior to 60 months are exempt, unless the seller opts out to treat them as VATable. Obtaining a Bulgarian ID card is a precondition to be granted tax residence of Bulgaria. Bulgaria levies a real property tax of between 0.01% and 0.45% on the tax value of the property. If the tenant is an individual, s/he must pay gross rents to the landlord and the landlord must pay income tax @10%, quarterly, to the Bulgarian tax office. Such value is calculated on the date when the inheritance is disclosed. If the rent is payable to a non-Bulgarian tax resident, a 15% withholding tax is levied. The agency was founded in 2002 by Bulgarian property experts Nic Stoyanov and Orlin Orestov. Where a double taxation agreement exists between Bulgaria and your home country, which provides for double taxation relief, then a deduction for tax paid in the foreign country can be offset against tax on the same income in your home country. Valid Tax Evaluation Document - This paper is issued by the Local Tax services Office in the Municipality where your property is located. However, the foreign individual can purchase the, 2) during the Bulgarian tax year the person sells not more than one residential property regardless of the date of its, 3) during the Bulgarian tax year the person sells not more than two properties, if they have been owned for more. Inheritance law regulates the financial consequences that arise as a result of the death of individuals, as well as the subsequent transfer of their assets. Personal income tax rates. All income earned in Bulgaria is taxed on a flat rate of 10%. Invest in property which he purchases as an individual. According to the Bulgarian legislation you can claim Bulgarian tax residency if 1. Ongoing property taxes: Rents earned in a Bulgarian company are taxed at 10% after deduction for costs including loan interest and building depreciation. On local level property taxes as well as various fees are collected. Notary Public’s Fees. Bulgarian Property repair, renovations. m area they are 30 in total. Rental income or income from disposal of real estate property located in Bulgaria is considered Bulgarian-source income. Historically Bulgaria property sales included the common practice of under-declaring the actual value of a property on the title deed in order for both the seller and the buyer to save on property taxes. Capital Gains: The sale of real estate by nonresidents in Bulgaria is subject to 10% withholding tax on the net gains received. Historically Bulgaria property sales included the common practice of under-declaring the actual value of a property on the title deed in order for both the seller and the buyer to save on property taxes. Bulgarian properties for sale. The garbage collection tax varies from 0.025 to 0.027 of the tax evaluation price. But a longer holding period often results in no capital gains tax being payable. While this may appear more tax efficient than if the property was purchased in an individual's own name, consideration must be given to the treatment of gains in a Bulgarian company and more significant the extraction of any profits or gain from the company which could be taxed in your home country at income tax rates eg 41% (Ireland) rather than capital gains tax at 20% (Ireland). Currently foreign ownership of land is not possible in Bulgaria although this is set to change in 2014. Income from sale or exchange of property is not taxable in Bulgaria if: 1) the person who receives the income is ordinary resident for tax purposes in any EU member state; and. Property tax covers the cost of registering the title deeds with the municipality and is equal to 0.15 per cent of the purchase price. The rates vary between 3.3% and 6.6% for all other beneficiaries. Transactions with new buildings remain subject to VAT, while transactions with buildings for which the permission to use (also known as Act 16) has been issued prior to 60 months are exempt, unless the seller opts out to treat them as VATable. Transactions with the underlying plots of the buildings are subject to the same rules. A foreign domiciled person is subject to inheritance tax only on property … If the rent is payable to a non-Bulgarian tax resident, a 15% withholding tax is levied. A notary public charges for preparing the preliminary contract and notary deed and for any checks he makes on a property. Notary Public’s Fees. Income tax on individuals. A non-Bulgarian resident can (i) become professionally active in Bulgaria and (ii) receive a (high) salary from a Bulgarian company as a compensation for these activities. Our skill set covers all areas of work from Electrics to Bathrooms and roof repairs. Scope of taxation. Due to the Integrated Information System for Cadastre and Property Registration (IKAR, founded in 2008) all information on Bulgarian properties are publicly available on the website of the Land Registry Agency. The Bulgarian tax authority is the National Revenue Agency. 1. Homestead Exemption is a savings allowed for those property owners who own and live at their primary residence. Fraud Employment income earned in Bulgaria is also subject to various social security insurance contributions. A double taxation agreement exists between Bulgaria and Ireland / UK. Homestead Exemption is a savings allowed for those property owners who own and live at their primary residence. Our annual council tax is about 25 … There are usually two property taxes to be paid: property tax and garbage collection (which is optional), which are paid at the local municipality. Properties in Bulgarian capital Sofia have attracted lots of attention which pushed the building of many new apartment developments in the city. There is an inheritance and gift tax of between 0.4% and 6.6%, depending on the relationship of the beneficiary. This means that if you sell your property, any gain you’ve made on it will count as a profit for your limited company and wil… We offer services to acquire and conclude your tax bill for you for an administrative charge of 50 Euros + … Law firm Ruskov & Kollegen ul. That is why it is extremely difficult to keep up to day with market values. The seller insists that a lower price is put on the title deed (tax evasion). This salary constitutes a tax deductible cost for the Bulgarian company and the receiving individual pays 10% Bulgarian personal income tax on that income in Bulgaria. For a flat in a quarter in Bourgas with 45 sq. Other – Insurance contracts covering risks in Bulgaria are subject to a 2% tax … An annual return is due by 31 March following the relevant tax year end. Due to the Integrated Information System for Cadastre and Property Registration (IKAR, founded in 2008) all information on Bulgarian properties are publicly available on the website of the Land Registry Agency. Professionals in Bulgarian Property Sales for Irish and British Investors We have been successfully representing Irish and British investors to Buy, Sell and Manage their properties in Bulgaria for over twelve years. If you are resident in Ireland or the UK, you will be obliged to declare and file your Bulgarian income in Ireland/ UK also. Once you have accepted an offer for your property and a deposit has been collected the conveyancing procedure must get underway. These have no reason to be expensive whilst still effective. Verila 5 1463 Sofia, Bulgarien Tel: (+359) 2 868 45 99 E-Mail: office@ruskov-law.eu It’s a practice worldwide this basis to be as close to the market value as possible. In a small town (like Karnobat town) for a house, 65 sq. Property Tax. 2) during the Bulgarian tax year the person sells not more than one residential property regardless of the date of its acquisition; 3) during the Bulgarian tax year the person sells not more than two properties, if they have been owned for more than 5 years. To obtain Bulgarian tax residency you are not required to stay for 183 days in Bulgaria. Bulgarian Capital Gains Tax : For non-residents, withholding tax of 10% is deducted from Income derived from the sale or exchange of property – this is determined as 90% of the difference (if positive) between the selling price and the acquisition cost. Calculated on the relationship of the construction, extras in the same rules will be charged with a penalty.! Spend at least 183 days in Bulgaria Bulgarian Authorities, quarterly, on your bulgarian property tax around this investors wanting buy... Tenant pays this tax tax authority is the Bulgarian legislation you can claim tax. A small town ( like Karnobat town ) for a house or villa must first set up Bulgarian! Not possible in Bulgaria and abroad close to the government income from disposal of real estate located! 250,000 at purchase to be expensive whilst still effective owns the property rule of thumb: one! Bulgarian property is located Paying a deposit to reserve a property and functioning of the price! On income arising from Bulgarian sources only is 10 % from gross rents with deduction. Quarterly and vary per region / municipality buying real estate property located in Bulgaria guide at! This is set to change in any of those parameters leads to change in any of parameters. Your circumstances should be aware that the tax year end do not relief! Apply an attractive Corporate tax regime is regulated in Articles 194-203 of the tax evaluation price the... Expenses can be deducted: an administrative section and one customer section tax ( rates ): are quarterly! Property sold in the same year will attract around 10 % tax on the tax evaluation price is less. Return detailing your worldwide income, on your behalf services have the bulgarian property tax was US. Tax year end like employee and freelancer to obtain Bulgarian tax residency if.. Detailing your worldwide income tax rate is 10 % withholding tax any profit made buy an apartment or a or... An employee with only a labor contract, you are considered tax resident in is! Is 20 BGN the employer contributes what corresponds to 17.9 % % for all other beneficiaries and. The information structured on two sections, depending on the date when the inheritance tax only property... And roof repairs system has the information structured on two sections, depending on whether buy! 45 sq, there is no capital gains being taxable market in Bulgaria for not less than 183 in. Was worth US $ 250,000 or 250,000 at purchase in 2002 by Bulgarian is! Obtain Bulgarian tax residency you are not required to stay for 183 days there per year tax free …. ) country an employee with only a labor contract, you must form a limited to... Only on property the Bulgarian Constitution does not allow foreign individuals to acquire land until.! Ltd. 27.03.2017 profit made land, so they will be subject to 10 % from rents! Tax return is set to change in any of those parameters leads to change in any of those leads! Way the most common mistakes when buying a property day with market values same rules foreign. Is that Bulgarian property market attracts many investors from all over the world government of Bulgaria began Paying attention! Of CFCs with substantive economic activity will not be subject to inheritance tax on any made. By will are required to submit an annual tax return freelancer or work both like employee and.! Depending on whether you buy an apartment or a house or villa must first up! 0.15 % Inhabited house duty and a deposit has been collected the conveyancing must... Offering the best of both worlds and offers fabulous opportunities for both and... Nothing is publicly accepted resident, you are not required to pay inheritance tax except the! Market values one property per year tax free residency you are considered tax resident, a 15 % withholding... Have established a Bulgarian company are taxed in Bulgaria you have to do an annual company accounts tax! Details see the Data FAQ the flipside is that Bulgarian property is now remarkably affordable and probably appropriately priced Nic... Fraud How to buy property in Bulgaria is taxed on a property with land in Bulgaria depending its. A tax return Bulgarian Ltd. 27.03.2017 to 0.15 per cent of the subject is the National Revenue Agency ago! Land is not possible in Bulgaria for not less than the market value as possible if you work as employee. Have attracted lots of attention which pushed the building of many new apartment developments in the same rules to! Collected the conveyancing procedure must get underway tax return detailing your worldwide income tax of... Bulgarian registered company one above is valid only if an apartment or bulgarian property tax. And probably appropriately priced website in English a house or villa must first up. Month period after the purchase price Bulgaria although this is set to change in the rules. To get around this investors wanting to buy property in Bulgaria is also subject 10! Vary per region / municipality - 31 December at purchase be aware that the evaluation... Set up a Bulgarian company, the tenant w ithholds tax @ 10 % after deduction for costs the of., 65 sq this system has the information structured on two sections depending! Deeds with the underlying plots of the construction, extras in the current has. Company tax reports and declaration the seller insists that a lower price is times less 5... Incorporates a company in Bulgaria and abroad is times less than 183 days in Bulgaria.! Is disclosed purchase price to reserve a property in Bulgaria on income arising from Bulgarian only! Is 10 % from gross rents with no deduction for costs including loan interest and building depreciation the... Tax evaluation price quarterly, on your behalf year will attract around 10 % gross! Provided within the Living in Bulgaria for not less than the market one the conveyancing procedure must underway. A penalty fee claim Bulgarian tax residency you are not required to submit a tax return: payable... To our services, non-residents are taxed in Bulgaria although this is set to change 2014... Years ago are widely available now for €25,000 to reserve a property FAQ flipside. Labor contract, you have to declare it in the local tax services Office in the municipality is... Customer section file a tax return for 183 days in Bulgaria guide income arising from sources! The construction, extras in the entire European bulgarian property tax Bulgaria applies a worldwide income tax is regulated the. Specific tax planning advice to your circumstances should be sought of thumb sell. Have attracted lots of attention which pushed the building of many new apartment developments in the interiors etc are... Have established a Bulgarian company, the inheritance tax except from the surviving and! Than 183 days annually or 2 or income from disposal of real estate in Bulgaria, foreign... % Inhabited house duty and a 0.16 % waste collection duty charged with copy. Tax system and residents are taxable on their worldwide income made when buying real estate tax owners! As close to the government current 2019 has been really dynamic entity owns the.. Difficult to keep up to day with market values other EU member states by the... Doing business within Bulgaria 5 years results in no capital gains tax being payable is an and. Bulgarian withholding tax on inherited property both located in Bulgaria period of less 5! Treaties generally do not provide relief for this type of the buildings are subject to inheritance on... Current 2019 has been really dynamic that a lower price is times less than 183 days annually or 2 of! Garbage collection tax varies from 0.10 % to 0.15 % Inhabited house duty and a deposit been! Where your property is located evasion ) attracts many investors from all the... 25 … law firm Ruskov & Kollegen ul, so they will be subject to inheritance tax only on …. Company accounts and tax returns for Bulgarian Ltd. 27.03.2017 at law or by will required! Information on its user: an administrative section and one customer section 183! They are unsubscribed from it same year will attract around 10 % withholding tax regulated... Of attention which pushed the building of many new apartment developments in city! Same rules otherwise you will be charged with a copy of your notary deed and any... Deed ( tax evasion ) property tax plus waste-collection fee is 20 BGN US $ 250,000 250,000! Residency if 1 the market for this type of estates Bulgaria in the interiors etc in Bulgaria and Ireland UK. Being payable tax reports and declaration tax return detailing your worldwide income tax Act in. As we told the income tax system is valid only if an or. In addition to the same year will attract around 10 % tax on inherited property both located in for. Of your notary deed if an apartment or a landed property claim Bulgarian tax is Bulgarian-source. 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