April 15, 2024


Mad about real estate

Real estate investment in Bulgaria ( tax detail ) by:- omega invest bulgaria

Bulgarian taxes at a glance

Corporate income tax


Personal income tax

up to 24{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}1

Social security and health insurance

36.4{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}2 of an insurance base between BGN 160 and BGN 1,400.

VAT rates

20{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} (0{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} for exports; 7{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} effective rate for certain tourist services).

Withholding tax

7{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} on:

• dividends or liquidation quotas distributable to non-residents3,4,

resident individuals or non-profit entities;

10{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} on:

• interest, royalties, technical and management service fees and some other

incomes payable to non-residents3.

One-off taxes on certain expenses

• 10{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} on representation expenses, some expenses related to usage of

v ehicles for management purposes, as well as on social expenses

provided in-kind.

Bulgarian taxes at a glance

Local taxes and fees

Relate mainly to real estates, vehicles, donations, inheritance, and garbage


Excise duties

Apply to alcohol, tobacco, some fuels and others.

Customs duties

Due on the customs value upon importation of goods.

Environmental fees

Include product fees on waste from packaging and fees on heavy fuel oil.

Specific corporate income tax regimes

Apply to collective investment schemes, licensed investment companies, specia l

purpose investment companies, gambling businesses, and some others.

Taxation of corporate profits

Corporate income tax rate

10{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} on the taxable profit.

Taxable profit

Statutory accounting profit/loss adjusted for tax purposes.

Statutory accounting

Maintained in BGN on accrual basis. IFRS are gradually introduced as a basis

for preparation of the financial statements of the companies6.

Adjustments for tax purposes

Expenses not related to the business activities or not duly documented, expenses

related to impairment of assets, provisions for liabilities, revaluation reserve in

certain cases, and others.

Tax residency

Companies are deemed to be tax resident in Bulgaria if they are registered in


Permanent establishments of non-resident entities in Bulgaria are taxed like

resident companies.

Tax allowed depreciation

4{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} to 50{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}, depending on the type of the asset under the straight-line

depreciatio n method.

Thin capitalisation

Interest expenses may not be fully deductible if the debt/equity ratio of the

company exceeds 3:1.

Taxation of corporate profits

Carry forward of tax losses

Tax losses can be carried forward over the following five consecutive years.

Foreign source losses may be offset only against taxable profit from the same

source. Relief is introduced with respect to EU source losses, which may be offset

against other source profits in certain circumstances.


To be submitted annually by 31 March of the following year (the tax year is the

calendar year).


The tax under the annual tax return is due by 31 March of the following year.

Advance payments are due on a basis determined by the law.

Taxation of dividends and liquidation quotas

Subject to 7{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} withholding tax when distributed to resident individuals, resident

non-profit entities and non-residents (there is an exception relating to dividends

distributed in the form of additional shares or increase of the nominal value of the

current shares).

Dividends distributed by a Bulgarian resident company to a tax resident entity in a

EU Member state shall not be subject to Bulgarian withholding tax, under certain


Profits distributed by a Bulgarian branch to its parent company abroad shall not

be subject to Bulgarian withholding taxation.

Generally, dividends distributed to resident companies are not considered as

taxable income (except for dividends distributed by special purpose investment


Withholding taxes – non-residents

Taxable income

• dividends and liquidation quotas (please also see section Taxation on

c orporate profits);

• interest, royalties, franchising and factoring;

• technical and management services fees;

• income from usage of movable and immovable property;

• capital gains from transfer of local real estates;

• capital gains from transfer of financial assets issued by the State, a

m unicipality or a local company7.

Withholding tax rate

10{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} on the taxable income (7{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} on dividends and liquidation quotas, and

exemption in certain cases). The withholding tax rate may be reduced under an

applicable double tax treaty.

Dividends distributed by a Bulgarian resident company to an entity – tax resident

in a EU Member state shall not be subject to Bulgarian withholding tax, under

c ertain conditions (including holding of more than 15{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the shares in the

B ulgarian companies for at least 2 years).


When the payer is a Bulgarian resident entity or a sole trader or a permanent

establishment of a non-resident, the tax should be remitted to the budget within

three months after the month of accrual of the income by the payer (or the month

of the decision for distribution of dividends and liquidation quotas).

If the payer is neither of the above, as well as in case of capital gains from transfer

of local real estates and financial assets, the tax should be paid by the beneficiary

within three months after the month of receiving the income8.

Withholding taxes – non-residents

Application of double tax treaties

A non-resident may benefit from a double tax treaty relief provided that an

a dvance clearance certificate is obtained from the Bulgarian tax authorities

f ollowing a specific procedure.

Bulgaria has more than 60 double tax treaties in force, including with most

E uropean countries, which generally follow the OECD Model. The Double Tax

Treaty with the USA is signed and is expected to enter into force, as of

1 January 2008.

Taxation of expenses

10{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} one-off tax is due on:

• “social” expenses provided in kind to the employees (e.g. fringe b enefits

p rovided to employees), except for food vouchers up to BGN 40 per

e mployee monthly and voluntary insurance contributions (pension, health,

unemployment and/or professional qualification, life insurance and life

i nsurance related to an investment fund) up to BGN 60 per employee


• representative and entertainment expenses;

• some expenses related to use of vehicles for management purposes.

Generally, the above expens
es and the tax on them are tax deductible for the


Corporate tax incentives

Reduction of the corporate income tax

The corporate income tax due may be reduced:

• by 10{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of certain acquired fixed assets (applicable for companies operating

within regions of high unemployment);

• with the mandatory social security contributions paid by the employer with

regard to the hired new employees within regions of high unemployment;

• by 60{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} – applicable for agricultural production entities;

• by 50{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} – applicable for social security and health insurance funds

established by law, state schools and universities;

• in other cases.

Full granting back of the corporate income tax

The corporate income tax due is fully granted back for investments and

production activities in high unemployment regions, and in other specific cases

determined by law.

Restrictions for application of the incentives

The application of the incentives listed above may be subject to additional

conditions, including state aid admissibility restrictions.

Specific corporate income tax regimes


Applicable for:

• special purpose investment companies;

• collective investment schemes;

• licensed investment companies;

• persons engaged in marine commercial shipping;

• gambling businesses;

• and some others.

Exemption from corporate income tax

Special purpose investment companies, licensed investment companies

of c lo s e-en d type and collective investment schemes, authorised for public

o ffering in Bulgaria, are not subject to corporate income tax.

There are also some other exemptions determined by law.

Personal income taxation


The maximum marginal tax rate is 24{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}, applicable to annual taxable income

exceeding BGN 7,200.


Generally, taxable income includes received monetary income, “social expenses”

provided in cash and benefits in-kind.

Bulgarian tax residents are taxed on their worldwide income, while non-residents

are taxed on their Bulgarian source income only.

Tax residency

In general, tax residency is determined on the basis of permanent domicile, more

than 183-day stay in Bulgaria in any 365-day period and centre of vital interest in

Bulgaria. The centre of vital interest is determined with regard to the individual’s

personal and economic ties to Bulgaria and a number of factors are c onsidered

in this respect, such as the family, possession of property, the place where

the i ndividual performs his employment, professional or economic activity etc.

H owever, if the individual has a permanent address in Bulgaria, but his centre

of vital interest is outside Bulgaria, he may not be considered a Bulgarian tax



Certain types of income are tax exempt, including incomes from specific

o perations on the capital market, incomes from transfer of real estate under

certain conditions, interest gained on deposits in local banks and branch offices

of foreign banks, profits from gambling, payments received under the mandatory

social security system, some benefits in-kind which are taxed at employer level,

and others.

Personal income taxation

Some deductions apply to different types of income, e.g. mandatory national

insurance contributions made at the expense of individuals, statutory deductions

at certain rates (e.g. for free lancers, for rental income), and others.

Some minor child allowances are deductible from the annual taxable base

(BGN 420 for one child, BGN 840 for two children, BGN 1,260 for three or more

c hildren).

Donations to the Child Healthcare Fund are deductible up to 50{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the taxable

income less other allowable deductions and mandatory payments. Donations

r elated to culture are deductible up to 15{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the yearly income. Donations to

other specific groups of individuals and entities/charities are deductible up to 5{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}

of the taxable income less other allowable deductions and mandatory payments.

Certain taxes levied abroad, may be credited in Bulgaria. There may be also relief

for certain types of income under existing double tax treaties.

Patent taxation

Lump-sum taxation is applicable to certain small businesses run by individuals

(with annual income below BGN 50,000).

One-off taxes

7{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} one-off tax is due on:

• dividends and liquidation quotas paid to a resident and non-resident

i ndividual from a Bulgarian resident company.

• dividends and liquidation quotas paid to a Bulgarian resident from

a n on-resident company.

• incomes from voluntary Life insurance schemes received after the

t ermination of the Life insurance policy that has been contracted for 15 years

or more.

Personal income taxation

10{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} one-off tax is due on incomes receivable by non-Bulgarian tax residents


• management fees and fees for technical services;

• interest, royalties, franchising, factoring, scholarships;

• rentals and disposal of real estate;

• incomes from disposal of shares, bonds and other financial instruments.

There are some exemptions from the above final tax for EU/EEA residents.

15{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} one-off tax is due on:

• incomes from early redemption of voluntary Life, health and private pension

insurance schemes.

Personal income tax returns

Submitted annually, by 30 April of the following year (the tax year is the calendar

year). A 5{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} reduction of the outstanding tax is applicable when the return is filed

before 10 February of the following year or is submitted electronically by 30 April

of the following year.

Individuals who have received only employment income from Bulgarian employers

or income subject to one-off taxation are not obliged to submit annual tax returns.


The final payment of tax is due within the terms for submission of the tax return,

i.e. 10 February or 30 April of the following year.

Certain advance payments are due during the year depending on the type of

the income and the status of the payer (e.g. on rental income, on management

income, service fees).

Social security and health insurance

Contribution to the social security funds

Generally, 36.4{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4}9 in aggregate – for the employer and the employee. This


• 18{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} – Pensions Fund

• 5{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} – Additional Universal Pensions Fund10

• 3.5{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} – General Illness and Maternity Fund

• 3{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} – Unemployment Fund

• 0.5{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} – Guarantee Fund for Employees’ R

• 0.4{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} – Occupational Accident and Professional Disease Fund

• 6{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} – Health Insurance Fund

Ratio of the contributions between employee and employer

In 2007 the ratio remains 65{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} for the employer and 35{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} for the employee.

The contributions to the Occupational Accident and Professional Disease Fund

and the Guarantee Fund for Employees’ Receivables are fully for the account of

the employer.

Insurance base

The gross remuneration less statutory expenses in some cases.

The minimum insurance base varies between BGN 180 and BGN 851 per month

depending on the economic activity of the employer and the profession and grade

of the employee.

The maximum insurance base is capped to BGN 1,400 per month.

Social security and health insurance

Social security treaties

Under existing bilateral treaties foreign employees may be exempt from social

security contributions in Bulgaria or contributions made in Bulgaria may be

r ecognised in their home country, if particular conditions are met.

As of 1 January 2007 the provisions of the EEC Regulation 1408/71 on social

security are applicable to Bulgaria. The Regulation provides that the individual

should be insured only in one Member State – in principle this should be the

country where the individual physically works. In case of a temporary a ssignment/

posting abroad (in another EU – country) for up to five years the individual may

continue to contribute to his /her home country social security system and be

exempted from host country social security contributions provided he/she obtains

an E101 form from his/her home country social security authorities.

Value added tax (VAT)

New VAT Act and Regulations for its application are in force as of 1 January 2007

following Bulgaria’s accession to the EU.


• 20{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} standard rate – applies to domestic taxable supplies carried out against

consideration, intra-community acquisitions of goods and importation of

goods from non-EU Member States;

• 7{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} reduced rate – applicable only to accommodation provided by a hotelier

as part of a tourist package tour.


• With credit (= 0{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} VAT rate) – including but not limited to: export supplies;

international transport of goods and passengers including certain s upplies

related to international transport; intra-community supplies of goods; sales

of duty-free goods in duty-free shops, where such sale is considered export

as per the Duty Free Trade Act; supplies of gold (except investment gold)

to Central Banks of EU Member States; certain transactions related to

i nternational trade, and specific supplies under international treaties;

• Without credit – including but not limited to: transfer of land and limited

property rights over land (excluding building land and attached land plots

to new buildings), the rental of land and transfer of old buildings or parts

thereof, the rental of buildings or parts thereof for residential purposes to

individuals other than sole trader (an option to tax is available for these

t ransactions); financial and insurance services; certain educational and

cultural services; health services and some other specific supplies.

There are also specific exemptions from import VAT and VAT on Intra-community

acquisitions of goods.

Transactions with place of supply outside Bulgaria that would be treated as

t axable if performed on the territory of Bulgaria as well as provision of financial or

insurance services to non-EU residents are entitled to VAT credit (related input VAT

is recoverable).

Value added tax (VAT)

Reverse charge mechanism

The range of supplies where the reverse charge mechanism applies is extended

under the current Bulgarian VAT legislation.

Some examples of supplies and services where the reverse charge mechanism

applies where the supplier is neither registered for VAT purposes nor established

in Bulgaria and the liability to pay tax is shifted to the customer which is VAT

registered in the country are:

• supplies of the so called “intellectual services” under Article 22 (3) of the VAT

Act (e.g. supply of licences, patents, know-how, intellectual property rights,

advertising services, consultancy services, provision and processing of

information, etc.)12;

• supply of intra-Community transport of goods, as well as services, related to

intra-Community transport of goods by a supplier established in another EU

Member State;

• in case of a triangular transaction where the third party (acquirer) is

r egistered for VAT purposes in Bulgaria and the conditions regarding

t riangular transactions are met;

• supplies of goods with assembly/ installation, provided by an EU resident

supplier without a fixed establishment in Bulgaria;

• supplies of natural gas or of electricity.

Triangular transactions

Triangular transaction is defined as a supply of goods between three persons

r egistered for VAT purposes in three different EU Member States A, B and C,

where the following conditions are simultaneously met:

• a registered person in Member State A (transferor) supplies goods to a

person registered for VAT purposes in Member State B (intermediary) who

subsequently supplies these goods to a person registered for VAT purposes

in Member State C (acquirer);

Value added tax (VAT)

• the goods are transported directly from A to C;

• the intermediary is not registered for VAT purposes in Member States A

and C;

• the acquirer charges VAT as a recipient of the supply.

The intermediary in the transaction is released from the obligation to register

for VAT purposes in the EU Member State of the acquirer and is not required

to charge VAT as the liability to charge VAT is shifted to the acquirer.

VAT registration

The mandatory VAT registration threshold is BGN 50,000 of taxable supplies

c arried out in the last 12 months. There are no rules on group VAT registration.

The threshold for registration based on intra-community acquisitions is BGN

20,000 in a calendar year.

The registration threshold for distance sales is BGN 70,000 for distance sales

with place of supply in Bulgaria carried out during the current calendar year

or in the preceding calendar year. A taxable person performing distance sales

of goods may choose to register before reaching the above threshold.

Persons established in other EU Member States and supplying goods with

a ssembly/installation in Bulgaria to customers non-registered for VAT purposes

in the country are obliged to register irrespective of their taxable turnover.

Each person that carries out independent economic activity can apply for

v oluntary VAT registration before an obligation for registration on the above

grounds arises (i.e. irrespective of thresholds). However, a voluntarily

VAT-r egistered person may not deregister earlier than 24 months starting

from the year following the year in which the VAT registration has taken place.

Fiscal representation

The appointment of a local fiscal representative is mandatory fo
r foreign persons

(including EU residents), except for those having a local branch.

Value added tax (VAT)

VAT returns and payments of VAT

VAT is due monthly, by the 14th day of the following month. As of 2007 no a nnual

VAT return shall be filed. Corrections of the VAT recovery coefficient

for a r espective year are made in the VAT return for December.

VIES declarations are due (by the 14th day of the following month) only in cases

of effected intra-community supplies of goods and/or supplies of certain services

during the respective month.

Input VAT recovery

VAT can be claimed in VAT returns and is recoverable within:

• 30 days for persons who have effected zero rated supplies within the last

12 months exceeding 30{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the total value of all taxable supplies they

have made in the same period, as well as by large investors that meet

certain conditions;

• 3 months (for offsets) and 45 days (for effective refund) – in all other cases.

VAT refund to non-resident businesses

Foreign entities with no legal presence in Bulgaria are entitled to VAT refund

(according to Ordinances ? H-10 and ? H-11 of 24 August 2006). The scope

of goods and/or services on which VAT is refundable has been considerably

extended compared to the former rules.

VAT incentive for large projects

Investors authorised to apply the VAT incentive for big investment projects can

account for VAT upon importation in the monthly VAT return (without effective

payment of VAT).


An Act for the statistics of the intra-community trade in goods entered into force

on 1 September 2006.

New administrative requirements related to periodic filing of the so-called Intrastat

returns were introduced. The physical movement of goods as a result of the

s o-called “dispatches” and “arrivals” should be reported for Intrastat p urposes

(i.e. movements and supplies of goods from/to the territory of Bulgaria,

r espectively to/from EU Member States).

The filing of Intrastat returns is obligatory only for persons that are VAT registered

in Bulgaria and exceed the reporting thresholds for arrivals and dispatches.

The filing deadline is the 10th day of the month following the month in which the

arrivals or dispatches occur. The only exception is when the threshold is exceeded

during the current year. In this case the deadline is 20th of the month following the

first period for which an Intrastat return is due.

The thresholds for 2007 are BGN 100,000 for arrivals and BGN 150,000 for

d ispatches per annum.

The thresholds are reviewed annually.

Excise duties


Excise duties are applicable to certain products listed in the Excise Duties and Tax

Warehouses Act (e.g. beer and spirits, tobacco products, petrol and diesel fuel,

heavy oil, coffee, certain types of cars, and electricity).


Excise duties are charged as a flat amount in BGN per unit or as combination of

flat rate and ad valorem component.

Tax warehouses and deferred payment of excise duties

The productions of some excise goods (tobacco products, alcohol and energy

products, with small exceptions) should be carried out only in tax warehouses.

Excise goods may be imported, processed and stored in tax warehouses,

as well as transported, under a deferred payment regime.

Customs duties

As from 1 January 2007, Bulgaria is applying the EU customs legislation directly.

The applicable rates are percentages of the customs value (the transaction value

increased by certain costs). Reduced rates apply on imports of goods from

c ountries to which EU gives preferential tariff treatment.

Goods can be imported into Bulgaria under customs regimes with an economic

impact (e.g. bonded warehouses, inward processing, processing under customs


Procedures for post-clearance control aimed at facilitating the application of

simplified customs procedures remain in place.

Environmental fees

Product fees on the waste from packaging

Companies releasing on the market packed goods are obliged to utilise or burn

in waste-to-energy plants at least 38{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the weight of packaging waste. The

minimum part will gradually reach 60{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} by 2014.

Certain quantities of the waste from packaging should be recycled (the q uantities

are based on the type of packaging material). If the above requirements are not

met, product fees based on the type of material and the weight of packaging

should be paid.

The Companies may fulfil their waste management obligations by participating

in organisations for collective waste management.

Waste from electrical and electronic equipment (WEEE)

Ordinance for the requirements for release for circulation of electrical and

e lectronic equipment (EEE), treatment and transportation of waste EEE (WEEE)

implements EC Directive 2002/96/EC (also known as “The WEEE Directive”)

in the Bulgarian legislation.

The Ordinance prohibits the release for circulation of EEE not meeting the explicit

requirements for contents of harmful substances. Producers and importers of

EEE are obliged to reach certain targets for separate collection, recycling, reuse

and disposal of WEEE. This obligation could be fulfilled individually or through

c ollective schemes. In case the producers and importers fail to meet the targets

they will be obliged to pay product fees, calculated on the basis of the weight

and the type of the EEE released for circulation by them.

Local taxes and fees

Real estate tax

0.15{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} on the tax value of the real estate annually.

Transfer tax

2{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} on the value of the transferred real estate or motor vehicles (subject to

certain exemptions, e.g. contributions in kind and acquisitions under the Law

on p rivatisation and Post-privatisation control).

Vehicle tax

Depends on the type of vehicle (e.g. passenger car, bus, cargo truck, construction

vehicle, ship, aircraft). The vehicle should be registered in Bulgaria. For example,

the tax is BGN 112 annually for a passenger car not older than 5 years with engine

power of 100 h.p.

Donation tax

5{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} of the value of the donation or on a written-off liability (lower rates are

a pplicable for donations to relatives; donations made to relatives of direct line

and to a spouse, as well as common presents are exempt).

Inheritance tax

The tax is levied on property exceeding BGN 250 thousand (EUR 128 thousand)

and amounts to 0.7{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} for property inherited by brothers, sisters and their children,

and 5{ef6a2958fe8e96bc49a2b3c1c7204a1bbdb5dac70ce68e07dc54113a68252ca4} – for other heirs. Property inherited by a spouse or heirs of direct line is


Local fees

The fees for certain municipal services (e.g. garbage collection) are determined

separately by each municipality and may vary.