Bulgaria Property Tax Overview
This article gives an overview of the main taxes that a property owner would need to deal with in Bulgaria.
Personal tax number
Property owners must register themselves for tax and obtain a BULSTAT number.
Properties must be registered for property and garage tax at the local municipality. This must be done within two months of purchasing the property otherwise fines are applied.
Income tax on rents
Income tax rate is 10%.
The tax year runs from 1st January to 31st December.
Income tax return deadline is 30th April each year. A flat rate 10% of income can be set as costs, no matter what the real costs.
Income tax must be paid monthly (or quarterly in some cases) – this is a new rule from January 2011:
- If the tenant is a company the company is responsible to deduct & pay to the tax office 10% from the rent monthly
- If the tenant is a private individual the foreign owner has to pay a 10% withholding tax by the 15th of the following month/quarter
There are no property sales taxes, though there are notary fees to pay and the buyers has to pay a purchase tax of approx 2% which is sometimes shared with the seller.
Capital Gains Tax
There is 10% capital gains tax in Bulgaria (capital gains are treated as income).
Corporations are taxed at 10% on profits in Bulgaria and dividends taxed at 5%.
The Value Added Tax rate in Bulgaria is 20%.