Taxes in Bulgaria

Taxes in Bulgaria are relatively low in comparison to other European countries.

Transaction and registration taxes

Title deed transfer tax is 3% of the property value.

Registration fees and stamp duty vary from 0.1% to 1.5%.

Notary fees are about 0.4% of the property value on average.

There is an additional charge for registration with state archives of 0.01%.

The exact amount of tax on a property purchase in the different cities of Bulgaria can be calculated online (in Bulgarian). For example, buying property in Burgas worth BGN 600,000 (Bulgarian Lev), or about €307,000, will incur taxes and fees of about BGN 17,500, or €9,000.

Ownership taxes

Real estate tax (данък върху недвижим имот) is charged on all property except forests and agricultural land. The rate is the same for individuals and companies and varies from 0.01% to 0.45% depending on municipality. For individuals this tax is calculated on the estimated value and for companies, on book value. There is 50% tax deduction for the purchase of a primary residence. Payments are due every quarter before the end of March, June, September and November for each fiscal year. One-off payments can be made before the end of March and entitle the owner to 5% discount. Taxpayers can calculate and pay it online at Proverka.Eu (in Bulgarian).

Additional taxes

Capital gains tax, as well as income and corporate tax rates are fixed at 10%. Companies with annual turnover exceeding BGN 50,000 pay 20% VAT (ДДС).

Inheritance tax is 0.4–6.6% depending on degree of relation, municipality and type of real estate. Spouses are exempt from inheritance tax.

Disclaimer: the information in the above article is for reference and may be subject to change over time. Persons interested in exact calculations should contact a certified tax specialist in this country before purchasing property.