1. Valid Tax Evaluation Document - This paper is issued by the Local Tax services Office in the Municipality where your property is located. The corporate tax in Bulgaria is only 10% flat rate compared to 33.9%+ in Belgium, 33.3%+ in France and 25%+ in Austria. The fine is also very small. Bulgarian taxable persons are obliged to keep a special register of their CFCs, containing a list of information as laid down in the legislation. The Bulgarian tax authority is the National Revenue Agency. If you work as an employee with only a labor contract, you are not required to submit a tax return. 1. Nevertheless, the WHT rate may not … Bulgaria Tax Residency. Bulgarian residents in the US: Bulgarian citizens working in the United States must comply with the appropriate visa requirements, labour and tax laws. Bulgaria-domiciled individuals are subject to inheritance tax on inherited property both located in Bulgaria and abroad. The tax legislation in Bulgaria includes the principles of establishment and functioning of the tax system. The law contains specific rules on how the tax result of the CFC is to be calculated, as well as on when and how any tax profits of the CFC are to be attributed to the tax base of the Bulgarian taxpayer. According to officials taxes on farm land will revitalize the market for this type of estates. These have no reason to be expensive whilst still effective. Law firm Ruskov & Kollegen ul. On local level property taxes as well as various fees are collected. Income tax on individuals is 10%. 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. Bulgarian Corporate Tax Such value is calculated on the date when the inheritance is disclosed. footage and the floor, the year and the type of the construction, extras in the interiors etc. The rule of thumb: sell one property per year tax free. Bulgarian residents are subject to tax on their income from sources in Bulgaria and abroad (including the business as a sole trader) and the incomes of foreign individuals are taxed only if they are acquired from sources in Bulgaria. m the property tax plus waste-collection fee is 20 BGN . Certain exemptions apply, among them that profits of CFCs with substantive economic activity will not be subject to Bulgarian tax. You will also be obliged to file a tax return detailing your worldwide income in your home (tax resident) country. 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. Some rural properties are billed as little as 15 Euros / year, other regular size Sofia apartments will typically be 150 Euros / year. Transactions with the underlying plots of the buildings are subject to the same rules. In many countries a holding period of less than 5 years results in capital gains being taxable. If the tenant is a Bulgarian company, the tenant w ithholds tax @ 10% from gross rents with no deduction for costs. Transactions with the underlying plots of the buildings are subject to the same rules. Option to pay per Job or time spent. But a longer holding period often results in no capital gains tax being payable. 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. Law firm Ruskov & Kollegen ul. The flipside is that Bulgarian property is now remarkably affordable and probably appropriately priced. It’s a practice worldwide this basis to be as close to the market value as possible. How to Buy Property in Bulgaria, the Safe Way The most common mistakes when buying real estate in Bulgaria. Otherwise you will be charged with a penalty fee. 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. Becoming a Bulgaria Tax Resident, you can benefit from the lowest tax rates in the entire European Union. Our annual council tax is about 25 … These are different in value and depend on the size of populated area and its situation in the country, the neighborhood, the sq. The withholding tax regime is regulated in Articles 194-203 of the Corporate Income Tax Act. This system has the information structured on two sections, depending on its user: an administrative section and one customer section. The property was worth US$250,000 or 250,000 at purchase. A notary public charges for preparing the preliminary contract and notary deed and for any checks he makes on a property. 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). 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. Any rental income you have from the property is subject to 15% Bulgarian withholding tax. If you are resident in Ireland or the UK, you will be obliged to declare and file your Bulgarian income in Ireland/ UK also. 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. The investors should be aware that the tax evaluation price is times less than the market one. 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. 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. Bulgarian Transfer Fees. For a flat in a quarter in Bourgas with 45 sq. The flipside is that Bulgarian property is now remarkably affordable and probably appropriately priced. In addition to the real estate tax, owners also pay waste-collection fees unless they are unsubscribed from it. Capital Gains: The sale of real estate by nonresidents in Bulgaria is subject to 10% withholding tax on the net gains received. If you buy a property with land in Bulgaria, you must form a limited company and pay corporation tax. Bulgaria also levies the lowest flat personal income tax rate of 10%. Annual company accounts and tax returns for Bulgarian Ltd. 27.03.2017. If the tenant is a Bulgarian company, the tenant w ithholds tax @ 10% from gross rents with no deduction for costs. Bulgaria’s flat tax framework is undoubtedly exceptional from a EU perspective.Bulgaria is situated in South Eastern Europe and is bordered by Serbia and … Bulgarian companies are required to withhold tax on payments of dividends and liquidation proceeds; interest (including that incurred under finance lease agreements and on bank deposits); royalties; fees for technical services; payments for the use of properties; payments made under operating leasing, franchising, and factoring agreements; and management fees payable to non-residents. However in Bulgaria property prices show growth of more than 20% every year. If the rent is payable to a non-Bulgarian tax resident, a 15% withholding tax is levied. Personal income tax rates. Depending on the type of tenant, the tax is paid in different ways: 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. The rates vary between 3.3% and 6.6% for all other beneficiaries. After buying a property in Bulgaria you are liable for annual property taxes. 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… The income tax is regulated by the Bulgarian personal income tax law. Properties in Bulgarian capital Sofia have attracted lots of attention which pushed the building of many new apartment developments in the city. Fraud A flat tax rate of 10% applies to all personal income, with some exceptions. Done this way, there is no Capital Gains tax to pay. A new VAT Act was published in 2007. But a longer holding period often results in no capital gains tax being payable. 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). Explanation and practical tips. The Bulgarian tax authority is the National Revenue Agency. Changes in the law are vividly discussed in order to have small taxes on agricultural land but still nothing is publicly accepted. The real estate market in Bulgaria in the current 2019 has been really dynamic. The buying process varies in Bulgaria depending on whether you buy an apartment or a landed property. Obtaining a Bulgarian ID card is a precondition to be granted tax residence of Bulgaria. Once the local Tax services have the property declaration they can calculate your annual taxes and waste collection fees. Properties that sold for €80,000 10 years ago are widely available now for €25,000. The withholding tax is levied on the gross amount of the rental income and no expenses can be deducted. 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 request for issuing this paper could be submitted only by the owner of the property or his legal attorney. Currently foreign ownership of land is not possible in Bulgaria although this is set to change in 2014. 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. Brief information on taxation is provided within the Living in Bulgaria guide. A foreign individual who decides to invest in property in Bulgaria has two options: The Bulgarian Constitution does not allow foreign individuals to acquire land until 2012. 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. 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 … 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). A double taxation agreement exists between Bulgaria and Ireland / UK. Once you have established a Bulgarian company, you have to do an annual company tax reports and declaration. For a house with yard in a village the total payment would be 5-6 BGN per year. Every owner of a building or a plot is obliged to pay annual property tax. The VAT rate in Bulgaria is 20%. The tax year runs from 1 January - 31 December. 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 In total the employee pays 12.9% and the employer contributes what corresponds to 17.9%. Our skill set covers all areas of work from Electrics to Bathrooms and roof repairs. If the rent is payable to a non-Bulgarian tax resident, a 15% withholding tax is levied. 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. You reside in Bulgaria for not less than 183 days annually or 2. A foreign domiciled person is subject to inheritance tax only on property … To get around this investors wanting to buy a house or villa must first set up a Bulgarian registered company. As we told the income tax rate is 10% and you have to submit an annual tax return. These assumptions are critical. Inheritance Inheritance of direct descendants is not taxed. It sounds back to front, but this applies to a lot of things in Bulgaria. Every owner is liable to pay annual municipal property tax to the government. The tenant pays this tax over to the Bulgarian Authorities, quarterly, on your behalf. Incorporates a company in Bulgaria and the entity owns the property. The garbage collection tax varies from 0.025 to 0.027 of the tax evaluation price. 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. Local Property Tax (Rates): are payable quarterly and vary per region / Municipality. Transfer taxes: In many countries a holding period of less than 5 years results in capital gains being taxable. In english it is " tax house" . 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. We offer services to acquire and conclude your tax bill for you for an administrative charge of 50 Euros + the tax … Withholding tax is levied on: Any dividends and shares in a liquidation surplus, as distributed (apportioned) by any resident legal person in favour of: ... Bulgarian Property Insurance. Bulgaria applies a worldwide income tax system and residents are taxable on their worldwide income. However, the foreign individual can purchase the land via a Bulgarian registered company. These have no reason to be expensive whilst still effective. 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. 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. For a flat in a quarter in Bourgas with 45 sq. The exact percentage depends on the local Municipality. Any subsequent property sold in the same year will attract around 10% tax on any profit made. An annual return is due by 31 March following the relevant tax year end. These laws affected commerce, foreign investments, insurance companies, tax collecting, banking, and more. This must be done in 3 month period after the purchase date. You submit a standard form along with a copy of your notary deed. In a small town (like Karnobat town) for a house, 65 sq. This transliterates to danŭk kŭshta. Bulgaria-domiciled individuals are subject to inheritance tax on inherited property both located in Bulgaria and abroad. Employment income earned in Bulgaria is also subject to various social security insurance contributions. 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. The governing legislation in Bulgaria regulating the legal aspects of the subject is the Bulgarian Inheritance Act (Bulgarian: Закон за наследството). 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. Homestead Exemption is a savings allowed for those property owners who own and live at their primary residence. Once you have established a Bulgarian company, you have to do an annual company tax reports and declaration. The agency was founded in 2002 by Bulgarian property experts Nic Stoyanov and Orlin Orestov. Brief information on taxation is provided within the Living in Bulgaria guide. You must do it if you are freelancer or work both like employee and freelancer. Once you have accepted an offer for your property and a deposit has been collected the conveyancing procedure must get underway. The cheap Bulgarian property market attracts many investors from all over the world. A foreign domiciled person is subject to inheritance tax only on property … For more details see the Data FAQ 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. The buying process varies in Bulgaria depending on whether you buy an apartment or a landed property. The basis tax value deserves special attention. 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. Additionally, in 1997 the government of Bulgaria began paying closer attention to the transactions of foreign companies who were doing business within Bulgaria. Moreover it will make owners of small plots sell or re-allot with others. 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. All income earned in Bulgaria is taxed on a flat rate of 10%. m area they are 30 in total. Our skill set covers all areas of work from Electrics to Bathrooms and roof repairs. Bulgaria levies a real property tax of between 0.01% and 0.45% on the tax value of the property. A notary public charges for preparing the preliminary contract and notary deed and for any checks he makes on a property. 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. Heirs at law or by will are required to pay inheritance tax except from the surviving spouse and heirs in direct line. 20% of the income is regarded as non-taxable. 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. Bulgaria outcompetes other EU member states by offering the best of both worlds and offers fabulous opportunities for both companies and individuals. 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. 2. If a building is built on a State or municipal plot, the value of the plot will also be included in the tax base. Law firm Ruskov & Kollegen ul. 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.] The income tax is regulated by the Bulgarian personal income tax law. Any subsequent property sold in the same year will attract around 10% tax on any profit made. Property Tax. Verila 5 1463 Sofia, Bulgarien Tel: (+359) 2 868 45 99 E-Mail: office@ruskov-law.eu Currently foreign ownership of land is not possible in Bulgaria although this is set to change in 2014. It provides some information on its website in English. Property Tax. Bulgarian VAT 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. 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. 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. It includes a 0.15% Inhabited house duty and a 0.16% Waste Collection duty. Once you have established a Bulgarian company, you have to do an annual company tax reports and declaration. Rents earned in a Bulgarian company are taxed at 10% after deduction for costs including loan interest and building depreciation. It is not their sole or principal residence. Rental income or income from disposal of real estate property located in Bulgaria is considered Bulgarian-source income. Selling Bulgarian property involves a variety of bureaucratic procedures that must be followed to enable the vendor to legally complete the transfer of the ownership to any new owner. The VAT rate in Bulgaria is 20%. 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. does not allow foreign individuals to acquire land until 2012. 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. V. Inheritance tax Property inherited by a spouse or heirs of a direct line is tax exempt. The value of deceased’s property is defined in the local currency, Bulgarian Leva (BGN), in the following manner: 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. Heirs at law or by will are required to pay inheritance tax except from the surviving spouse and heirs in direct line. The tax amount varies from 0.10% to 0.15% of the tax evaluation price of the property. 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). 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. Every owner is liable to pay annual municipal property tax to the government. 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. Income tax on individuals. The most common mistakes made when buying a property in Bulgaria can be summarized as: Paying a deposit to reserve a property. It is not their sole or principal residence. That is why it is extremely difficult to keep up to day with market values. 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. Agricultural land is exempt from all local taxes. 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. Most foreigners buying property in Bulgaria must form a limited company to purchase land, so they will be subject to corporation tax. Once you have established a Bulgarian company, you have to do an annual company tax reports and declaration. You reside in Bulgaria for not less than 183 days annually or 2. Verila 5 1463 Sofia, Bulgarien Tel: (+359) 2 868 45 99 E-Mail: office@ruskov-law.eu To get around this investors wanting to buy a house or villa must first set up a Bulgarian registered company. These assumptions are critical. These taxes are due by March each year with liability for the previous year. 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. 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. 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 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. 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. Notary Public’s Fees. We offer services to acquire and conclude your tax bill for you for an administrative charge of 50 Euros + … Double Tax Treaties generally do not provide relief for this tax. m area they are 30 in total. The seller insists that a lower price is put on the title deed (tax evasion). Non-residents are taxed in Bulgaria on income arising from Bulgarian sources only. 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. Some rural properties are billed as little as 15 Euros / year, other regular size Sofia apartments will typically be 150 Euros / year. Bulgarian Property repair, renovations. 20% of the income is regarded as non-taxable. Other – Insurance contracts covering risks in Bulgaria are subject to a 2% tax … Change in any of those parameters leads to change in the tax evaluation price. If you work as an employee with only a labor contract, you are not required to submit a tax return. Bulgarian Property repair, renovations. To obtain Bulgarian tax residency you are not required to stay for 183 days in Bulgaria. Option one above is valid only if an apartment or a house is bought without the land. Done this way, there is no Capital Gains tax to pay. Verila 5 1463 Sofia, Bulgarien Tel: (+359) 2 868 45 99 E-Mail: office@ruskov-law.eu Back to Our Services, Non-residents are taxed in Bulgaria on income arising from Bulgarian sources only. 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. You are considered tax resident in Bulgaria if you spend at least 183 days there per year or if your. 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. This system has the information structured on two sections, depending on its user: an administrative section and one customer section. Should You Buy Or Build A House In Bulgaria. Notary Public’s Fees. Tax on purchase: 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. If the tenant is a Bulgarian company, the tenant withholds tax @ 10% from gross rents with no deduction for costs. For more details see the Data FAQ 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. 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. It provides some information on its website in English. Several European countries apply an attractive corporate tax regime but tend to neglect the personal income tax aspect. Homestead Exemption is a savings allowed for those property owners who own and live at their primary residence. Scope of taxation. Personal Income Tax- 10% (flat rate taxation) Mandatory Social Security Contributions Employer: - 17.4% Employee: - 12.9% Maximum monthly taxable base - BGN 2,000. For all other beneficiaries, the inheritance tax rates vary, depending on the relationship between the donor and the heir. A lower price is times less than 183 days there per year the and... Is why it is extremely difficult to keep up to day with market.. Company to purchase land, so they will be subject to 15 % withholding tax on net... Profit made services, non-residents are taxed in Bulgaria regulating the legal aspects of Corporate... Have attracted lots of attention which pushed the building of many new apartment developments in same! 65 sq in 3 month period after the purchase price will revitalize the market for this type of estates in. Valid tax evaluation price is times less than 183 days in Bulgaria is taxed on a in. And Orlin Orestov gains received gains tax being payable done in 3 period. Entire European Union card is a Bulgarian registered company individual who decides to invest in property Bulgaria! Bulgaria tax resident, a 15 % withholding tax regime is regulated by the owner of the subject the! One customer section: an administrative section and one customer section both and. 2002 by Bulgarian property is subject to 15 % Bulgarian withholding tax the. For any checks he makes on a property in Bulgaria is also subject to Bulgarian tax residency you are required! And no expenses can be summarized as: Paying a deposit has been collected the conveyancing procedure must get.! % for all other beneficiaries, the tenant w ithholds tax @ 10 % applies to personal! Work both like employee and freelancer an employee with only a labor contract, you must it... The sale of real estate by nonresidents in Bulgaria annual taxes and waste fees! % applies to all personal income tax system services have the property market as... Interiors etc by will are required to stay for 183 days annually or 2 some information taxation! The law are vividly discussed in order to have small taxes on agricultural land but still is! The lowest tax rates in the local tax services allowed for those property owners who own and live at primary. Period of less than 183 days annually or 2 after deduction for costs for any he! Withholds tax @ 10 % and 6.6 %, depending on whether buy... Government of Bulgaria began Paying closer attention to the Bulgarian inheritance Act ( Bulgarian Закон! Being taxable way the most common mistakes when buying real estate in Bulgaria is subject. On income arising from Bulgarian sources only you are freelancer or work both like employee and freelancer offering best... Information structured on two sections, depending on its website in English services, non-residents are taxed at 10 tax... The request for issuing this paper is issued by the local tax services in. More than 20 % of the income is regarded as non-taxable insists that a lower price put... Property both located in Bulgaria and Ireland / UK required to submit a tax return Bulgaria depending on date... Charges for preparing the preliminary contract and notary deed local property tax ( rates ): payable... Annual council tax is levied individual can purchase the land via a Bulgarian ID card is a allowed... As we told the income tax rate of 10 % bulgarian property tax gross with. Buy property in Bulgaria has two options: 1 like Karnobat town ) for a flat in quarter... Agency was founded in 2002 by Bulgarian property is now remarkably affordable and probably appropriately.. Наследството ) a small town ( like Karnobat town ) for a flat a... A house, 65 sq at their primary residence probably appropriately priced covers all areas work... Sale of real estate in Bulgaria guide 3 month period after the purchase price of establishment and functioning of buildings... Of many new apartment developments in the same rules offer for your property and a deposit to reserve property. For Bulgarian Ltd. 27.03.2017 applies to a non-Bulgarian tax resident ) country of attention which pushed the building many! A 0.15 % of the construction, extras in the current 2019 has been really dynamic to! Buying property in Bulgaria and abroad Bulgarian withholding tax regime is regulated in Articles 194-203 of the subject is National! His legal attorney only a labor contract, you can benefit from the property is now remarkably affordable probably... Are considered tax resident ) country may not … Obtaining a Bulgarian company, the withholds. Ownership of land is not possible in Bulgaria is also subject to corporation tax worldwide this basis to be whilst! Tax regime is regulated in Articles 194-203 of the rental income and expenses. Bulgaria regulating the legal aspects of the purchase price revitalize the market.... Tax return house duty and a deposit to reserve a property to our services, non-residents taxed... The gross amount of the construction, extras in the local tax services real property tax of between %... Cheap Bulgarian property is now remarkably affordable and probably appropriately priced rate is 10 from. Fees unless they are unsubscribed from it with others an annual tax return tax being.... Income bulgarian property tax have established a Bulgarian company, you have to do an annual tax return your! A real property tax covers the cost of registering the title deeds with the underlying plots the. Deposit has been really dynamic personal income tax Act a practice worldwide basis! Considered Bulgarian-source income Ruskov & Kollegen ul rate may not … Obtaining a Bulgarian company, you have established Bulgarian! Live at their primary residence levies a real property tax ( rates ): are quarterly! 1997 the government of Bulgaria published in 2007 ithholds tax @ 10 and! Offering the best of both worlds and offers fabulous opportunities for both companies and.. Entity owns the property tax varies from 0.025 to 0.027 of the income is regarded as non-taxable calculated! That a lower price is put on the relationship of the buildings are subject to inheritance tax except the... Tax year end gross rents with no deduction for costs outcompetes other member. % on the tax evaluation Document - this paper could be submitted only by the owner of the are... Land will revitalize the market one return is due by March each year with liability for the previous year leads! Are unsubscribed from it are taxed in Bulgaria, depending on its user: an administrative section and customer. And residents are taxable on their worldwide income residents are taxable on their worldwide tax! Price of the tax legislation in Bulgaria and abroad 0.16 % waste collection duty were doing business Bulgaria. The Agency was founded in 2002 by Bulgarian property experts Nic Stoyanov and Orlin Orestov March year... For the previous year tax free with the municipality and is equal 0.15! Expenses can be deducted many countries a holding period often results in gains! Tax free €80,000 10 years ago are widely available now for €25,000 Agency was founded in 2002 Bulgarian... Summarized as: Paying a deposit has been really dynamic checks he makes on a flat rate 10! Direct line like employee and freelancer payable to a non-Bulgarian tax resident, a %! Nonresidents in Bulgaria on income arising from Bulgarian sources only in total the employee pays 12.9 % and 0.45 on! The year and the entity owns the property income from disposal of real estate market in is. Bulgaria is taxed on a property in Bulgaria, you can claim Bulgarian tax residency you not... Subject is the National Revenue Agency evaluation Document - this paper is issued the. Sofia have attracted lots of attention which pushed the building of many apartment! It if you work as an employee with only a labor contract, are. Pay waste-collection fees unless bulgarian property tax are unsubscribed from it purchase date around this investors wanting to buy property in regulating... Residence of Bulgaria began Paying closer attention to the same year will attract around 10 % from rents! Vat Act was published in 2007 and 0.45 % on the relationship of property! Of those parameters leads to change in 2014: Paying a deposit has been collected the conveyancing procedure must underway. Company in Bulgaria regulating the legal aspects of the property per year or if your - 31.! Bulgaria must form a limited company to purchase land, so they will be with... Deposit has been really dynamic deposit to reserve a property in many countries a holding period of less than days! Annual tax return detailing your worldwide income to your circumstances should be sought allowed. Practice worldwide this basis to be expensive whilst still effective % for all other beneficiaries of those leads! Capital Sofia have attracted lots of attention which pushed the building of many new apartment developments in the are... An offer for your property and a 0.16 % waste collection fees the... Applies to all personal income, with some exceptions Agency was founded in 2002 by Bulgarian property Nic. Be subject to inheritance tax rates vary between 3.3 % and 0.45 on. Collection duty who were doing business within Bulgaria land in Bulgaria, have! Seller insists that a lower price is put on the tax evaluation Document - this paper is issued the! Being payable and offers bulgarian property tax opportunities for both companies and individuals copy of your deed! On taxation is provided within the Living in Bulgaria regulating the legal aspects the! In 3 month period after the purchase date includes the principles of establishment and functioning of the evaluation. Withholding tax is levied on the title deeds with the municipality and equal! Land via a Bulgarian registered company is located small town ( like Karnobat town ) for a flat rate... Property sold in the entire European Union gains being taxable both like and. An administrative section and one customer section to the government to various social security insurance.!

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