The cheap Bulgarian property market attracts many investors from all over the world. The fine is also very small. Change in any of those parameters leads to change in the tax evaluation price. 1. footage and the floor, the year and the type of the construction, extras in the interiors etc. A foreign domiciled person is subject to inheritance tax only on property … The taxable base for Bulgarian inheritance tax is equal to the value of the inherited property (e.g., an apartment, shares of a company, and a car). If the tenant is an individual, s/he must pay gross rents to the landlord and the landlord must pay income tax @10%, quarterly, to the Bulgarian tax office. A foreign individual who decides to invest in property in Bulgaria has two options: Properties that sold for €80,000 10 years ago are widely available now for €25,000. Incorporates a company in Bulgaria and the entity owns the property. In many countries a holding period of less than 5 years results in capital gains being taxable. Heirs at law or by will are required to pay inheritance tax except from the surviving spouse and heirs in direct line. If the rent is payable to a non-Bulgarian tax resident, a 15% withholding tax is levied. If you want to know more or withdraw your consent toall or some of the cookies, please refer to the Privacy Policy, Buying a quality property preserves the capital, Obligations for Companies without activity in Bulgaria 2018, Bewitched by Bulgaria's Rhodopes mountains. m area they are 30 in total. Our skill set covers all areas of work from Electrics to Bathrooms and roof repairs. You will also be obliged to file a tax return detailing your worldwide income in your home (tax resident) country. Property Tax. Non-residents are taxed in Bulgaria on income arising from Bulgarian sources only. Notary Public’s Fees. The Bulgarian tax authority is the National Revenue Agency. The tax amount varies from 0.10% to 0.15% of the tax evaluation price of the property. 20% of the income is regarded as non-taxable. You must do it if you are freelancer or work both like employee and freelancer. Bulgaria Tax Residency. This website or its third party tools use cookies, which are necessary to its functioning and required toachieve the purposes illustrated in the cookie policy. This must be done in 3 month period after the purchase date. does not allow foreign individuals to acquire land until 2012. BULGARIAN PROPERTIES™, BULGARIANPROPERTIES.COM™ and the logos are trade marks of Bulgarian Properties Ltd., registered in Bulgaria under VAT#BG131164582 with address: 22, Zlaten Rog Str., Sofia 1407, Bulgaria. If you work as an employee with only a labor contract, you are not required to submit a tax return. Agricultural land is exempt from all local taxes. Once you have established a Bulgarian company, you have to do an annual company tax reports and declaration. It provides some information on its website in English. The Bulgarian Constitution does not allow foreign individuals to acquire land until 2012. Annual company accounts and tax returns for Bulgarian Ltd. 27.03.2017. In many countries a holding period of less than 5 years results in capital gains being taxable. The governing legislation in Bulgaria regulating the legal aspects of the subject is the Bulgarian Inheritance Act (Bulgarian: Закон за наследството). Bulgaria also levies the lowest flat personal income tax rate of 10%. Bulgarian Income Tax : For non-resident individuals, the applicable tax on rental income will depend on whether the tenant is an individual or a company. Moreover it will make owners of small plots sell or re-allot with others. Should You Buy Or Build A House In Bulgaria. To obtain Bulgarian tax residency you are not required to stay for 183 days in Bulgaria. Bulgarian Transfer Fees. If the real estate and/or the movable property are owned by more than one person, the income is divided in proportion to the participation in the ownership. Where a double taxation agreement exists between Bulgaria and your home country, which provides for double taxation relief, then a deduction for tax paid in the foreign country can be offset against tax on the same income in your home country. This means that if you sell your property, any gain you’ve made on it will count as a profit for your limited company and wil… There are usually two property taxes to be paid: property tax and garbage collection (which is optional), which are paid at the local municipality. Explanation and practical tips. A notary public charges for preparing the preliminary contract and notary deed and for any checks he makes on a property. The governing legislation in Bulgaria regulating the legal aspects of the subject is the Bulgarian Inheritance Act (Bulgarian: Закон за наследството). Done this way, there is no Capital Gains tax to pay. The law contains specific rules on how the tax result of the CFC is to be calculated, as well as on when and how any tax profits of the CFC are to be attributed to the tax base of the Bulgarian taxpayer. Homestead Exemption is a savings allowed for those property owners who own and live at their primary residence. Option to pay per Job or time spent. Selling Bulgarian property involves a variety of bureaucratic procedures that must be followed to enable the vendor to legally complete the transfer of the ownership to any new owner. Flat personal income, with some exceptions annually or 2 liable for annual property taxes administrative and. An apartment or a landed property substantive economic activity will not be subject Bulgarian. The National Revenue Agency as close to the transactions of foreign companies who were doing within. 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