Taxes in Bulgaria

Property Tax:

Each owner of a property in Bulgaria has to pay an annual property tax which amounts to 0.15 % of the tax evaluation price. An exception makes only the owners of forests and agricultural land who are not obliged to pay such a tax. According to the Bulgarian “Law for local taxes and fees” the tax evaluation price of the properties owned by a company represents its fiscal value from the balance sheets, while for residential properties owned by a company it remains the same. The tax evaluation price for individual residents and foreigners is defined according to specific standards including type of the property, location, size, construction etc. Thus for example if you have bought a property for EUR 150 000, which has a tax evaluation price of EUR 50 00, the annual property tax you have to pay is EUR 75. The annual property tax can be paid at four equal payments made in the following periods: by the end of March, by the end of June, by the end of September and by the end of November. If you pay the whole amount by the end of March, you receive 5 % discount.

Waste Tax:

This is the second type of tax which you as a property owner have to pay. It is due along with the property tax and is also determined by the Local Municipality as a percentage of the tax evaluation price – for most municipalities it varies between 0.1 and 0.3 %

 A natural person income tax:

This tax applies for both Bulgarians and foreigners who receive any incomes in Bulgaria. It amounts to 10 % of the total gross income but in some occasions the amount of the incomes can be reduced by some expenses recognized.

Thus for example if you rent out your apartment, you are due to pay 10 % of the gross income you have received. If you sell you property you have to pay 10 % tax except for:

a) If you have sold one residential property no matter when it was bought;

   b) If you have sold up to two separate properties, as well as agricultural land and forests without a restriction for the number of the deals, and if the period between the buying and the selling date is more than 5 years.

   c) Both exceptions are valid only for residents EU and countries members of the European Economic Community.