CLOSE X

Register - if you don't have an account

Fortnightly updates from the global property arena directly to your inbox


Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean

 


Financial Overview

Directory

Property Search

Global Statistics

Regional Statistics






Dec 05, 2016

Low taxes in Bulgaria


INDIVIDUAL TAXATION

Nonresidents are liable to pay tax on their Bulgarian-sourced income. Joint taxation is not allowed and married couples are taxed separately.

INCOME TAX

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

RENTAL INCOME
Tax on gross rents payable to nonresidents 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 nonresident individuals from the sale of Bulgarian property are taxed at 10%. The taxable capital gains is computed by deducting the inflation-adjusted acquisition price or the taxable value of the property for the purpose of real estate tax, whichever is higher, and incidental expenses (maximum of 10% of the selling price or fair market value of the property).

The following capital gains are exempt from taxation:

  • Disposal of one residential property, provided that the property was held for more than three years before it was sold
  • Disposal of a maximum of two real estate properties, provided that the property was held for more than five years before it was sold

Capital gains derived from the sale of properties acquired by inheritance are not subject to tax. Capital gains derived from the sale of properties received as gifts are taxed on the gross receipts because the acquisition price of the donation is deemed to be zero.

VALUE ADDED TAX(VAT)

Land transaction sales 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 0.1% and 0.45%.

CORPORATE TAXATION

INCOME TAX

Income and capital gains by corporations are taxed at a flat rate of 10%. Income-generating expenses are deductible in computing taxable income. Corporate income tax must be remitted on or before 31 March of the succeeding year.






Comments


Be the first to comment on this article!



Login or Register to submit a comment!

In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.



Compare Countries



Free Newsletter

Fortnightly updates from the global property arena directly to your inbox.


Email Address:





Connect to professional advice in Bulgaria





PROPERTY RECOMMENDATIONS

 
Download free property reports from international research houses

Our Newsletter

 
Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions