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Bulgaria: Taxes and Costs

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Low taxes in Bulgaria

Effective Tax Rate on Rental Income
Monthly Income	€1,500	€6,000	€12,000
Tax Rate	10%	10%	10%
Click here to see a worked example
Source:			Disclaimer

INDIVIDUAL TAXATION

Non-residents are liable to pay tax on their Bulgarian-sourced income. Married couples are taxed separately.

INCOME TAX

Income earned by non-residents is taxed at a flat rate of 10%. Deductions are not allowed for non-residents.

RENTAL INCOME
Tax on gross rents payable to non-residents is withheld at source at 10%. Tax due must be remitted monthly unless a tax treaty between Bulgaria and the foreign country exists whereupon tax may be remitted quarterly.

CAPITAL GAINS
Capital gains realized by non-resident individuals from the sale of Bulgarian property are taxed at 10%. The inflation adjusted acquisition price or the taxable value of the property for the purpose of real estate tax, whichever is higher, is deductible from the selling price.

VALUE ADDED TAX(VAT)

Land transactions and leasing residential properties are exempted from VAT.

PROPERTY TAX

Real Estate Tax

Owners are liable to pay real estate tax on their Bulgarian property. The tax base is the assessed value of the property as calculated by the local tax authorities. The tax rates are set by the municipalities where the property is located and may vary between 0.02% and 0.5%.

Bulgaria - more data and information

• Guide to buying houses and registering property sales in Bulgaria

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