Annual tax on the property

1. Income tax in Bulgaria is 10%

The tax is paid into the national budget.

At the end of the year, an adjustment is made based on actual profit:
- if profit is higher than last year, the difference is included;
- if profit is lower than last year, the excess amount is applied to future payments, with interest accrued at the National Bank rate. New companies and companies that incurred losses last year make monthly deductions based on the actual profit for the previous month. This is somewhat approximate, so an adjustment is also made based on the end of the year.

2. Dividend income - 5%

3. VAT - 20%

Agricultural land purchases and sales transactions in Bulgaria are not subject to VAT.

VAT is payable by companies with an annual turnover of over €25,000.

4. Property tax - 0.15% of the property's taxable value (the property's value, determined by the local tax office, is typically a quarter of the actual value).

5. Land tax - 0.15% of the plot's taxable value (the plot's value, determined by the local tax office, is typically a quarter of the actual value). Within two months of acquiring real estate in Bulgaria, the owner is required to declare it to the local tax authorities. There is no annual tax on agricultural land.

6. Garbage removal tax - 0.15-0.25% of the property's taxable value, determined by local authorities depending on the location, is paid simultaneously with the property tax.

Residential complexes in Bulgaria charge a service fee, which includes security, cleaning of the grounds and apartments, maintenance and repairs of common areas, landscaping, pool maintenance, etc. The fee is charged per square meter of the apartment per year and is set by the service company.

Utilities are charged separately:

Water - €2.5/m³

Electricity - €0.15 (night) - €0.17 (day)/kWh

All types of real estate located in Bulgaria are subject to taxation, with the exception of forests and agricultural land.

The taxable base for individuals is the property price determined by the local tax office – the so-called tax valuation; for companies, it is the book value. The tax valuation is the value of the property, calculated according to established state standards, and is the basis for calculating taxes when individuals pay for real estate in Bulgaria. The tax valuation typically amounts to approximately 20-40% of the property's market value. Taxes can be paid in equal installments until March 31st.

Property Taxation and Maintenance:

Costs associated with registering property ownership in Bulgaria amount to approximately 4%-6% (local budget tax, notary fees, court registration fees, and legal services) of the state property valuation, which is determined by the local tax office and cannot be lower than the price indicated in the notarial deed.

Paying the tax once a year provides a 5% discount.

7. Vehicle Tax:

This tax is paid by legal entities and individuals who own vehicles.

Cars, trucks, trailers, buses, tractors, ships, airplanes, etc. are subject to tax. The tax amount depends on the engine capacity and year of manufacture:

The tax is paid in two equal installments within the specified deadlines:

the first installment is due by March 31st,

the second installment is due by September 30th.

Tolls on Bulgarian roads:

A coupon system has been introduced for travel on roads outside populated areas. An annual coupon for passenger cars costs BGN 67, a monthly coupon costs BGN 10, and a weekly coupon costs BGN 4.

8. Personal income tax. The personal income tax rate is 10%.

9. Annual (patent) tax. The patent tax is payable only by sole proprietors. The patent tax has been waived for legal entities.

10. Remittance of income earned in Bulgaria:

Foreign investors may repatriate income earned in Bulgaria without restrictions, upon providing proof of payment of the above-mentioned taxes.