Bulgarian property taxes - information and advice

Bulgarian taxes. Bulgarian property taxes and fees. Bulgarian Corporate tax and VAT on Bulgarian properties.

Apart from Corporate tax, no other direct Bulgarian taxes are levied in Bulgaria on the transfer of real estate. The transfer is, however, subject to Notary and Municipal fees. The Bulgarian Notary fees are paid on the higher of the Bulgarian market price or the book value of the property at varying rates. In addition, 2% of the market value of the property is paid to the Municipality in which the real property is situated upon completion.

Bulgarian taxes and rates (after buying a property in Bulgaria)
The owner of a building or a plot is obliged to pay a real Bulgarian property tax and waste-collecting fees. These are different in value and depend on the size of populated area and its situation in the country, the neighborhood, the square footage and the floors, the year and the type of the construction, extras in the interiors etc. Where a building is built on a State or municipal plot, the value of the plot will also be included in the tax base. The tax is equal to 0.15% of the book value of the Bulgarian property. Agricultural land is exempt from local taxes.

The Bulgarian property taxes for your own property are very low. For example the annual Bulgarian property taxes and the annual garbage taxes for a property in a big Bulgarian cities or in a resort area are 50-70 EUR.

For example: for a solid house, 90 sq.m area in the Super Center Zone in Bourgas the annual real property tax is around 55 BGN and the waste collection fee is 60 BGN. For a flat in a quarter in Bourgas with 45 sq. m floorage they are 30 in total. In a small town (like the town of Karnobat) for a house, 65 sq. m the property tax plus waste-collection fee is 20 BGN . For a house with yard in a village (like Iskra village) the total payment would be 5-6 BGN per year.

Value Added Tax (VAT)
Transactions with Bulgarian land and lease of Bulgarian residential property are exempt from VAT (Value Added Tax), all other real estate transactions are subject to VAT at the uniform rate of 20%. However the buyer/lessee is entitled to a Bulgarian VAT refund, as soon as it is VAT registered .

Annual Costs
Annual costs for running a Bulgarian house or Bulgarian apartment are considerably lower than in UK apprx. 900-1200 EUR. Costs vary according to the size and location of the property in Bulgaria and how much is it in use. This includes:

a: Estimated charges for electricity, water and telephone;
b: Maintenance fees if the property is located in a complex area;
c: House/apartment and content