Bulgaria applies a worldwide income tax system and residents are taxable on their worldwide income. In many countries a holding period of less than 5 years results in capital gains being taxable. Other taxes Real estate annual tax - 0.01%- 0.45% Transfer tax - 0.1%- 3.0% • The rate is set by each municipality according to … Inheritance law regulates the financial consequences that arise as a result of the death of individuals, as well as the subsequent transfer of their assets. 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. If you sell a property in Bulgaria and you have a switched-on agent, it should be declared as your single and sole Bulgarian residence. m the property tax plus waste-collection fee is 20 BGN . Once you have established a Bulgarian company, you have to do an annual company tax reports and declaration. ... Bulgarian Property Insurance. But a longer holding period often results in no capital gains tax being payable. Several European countries apply an attractive corporate tax regime but tend to neglect the personal income tax aspect. On local level property taxes as well as various fees are collected. Bulgarian residents in the US: Bulgarian citizens working in the United States must comply with the appropriate visa requirements, labour and tax laws. Rents earned in a Bulgarian company are taxed at 10% after deduction for costs including loan interest and building depreciation. Back to Our Services, Non-residents are taxed in Bulgaria on income arising from Bulgarian sources only. The tax year runs from 1 January - 31 December. There are usually two property taxes to be paid: property tax and garbage collection (which is optional), which are paid at the local municipality. V. Inheritance tax Property inherited by a spouse or heirs of a direct line is tax exempt. According to the Bulgarian legislation you can claim Bulgarian tax residency if 1. These assumptions are critical. This transliterates to danŭk kŭshta. Transfer tax – Transfer tax is imposed on the sale or exchange of immovable property and motor vehicles, at rates ranging from 0.1% to 3%, determined by the municipality. The rate on capital gains from securities is equal to one half of the applicable rate as per the national legislations of Bulgaria and Israel. Inheritance Inheritance of direct descendants is not taxed. If you are resident in Ireland or the UK, you will be obliged to declare and file your Bulgarian income in Ireland/ UK also. Bulgarian Property Taxes. Due to the Integrated Information System for Cadastre and Property Registration (IKAR, founded in 2008) all information on Bulgarian properties are publicly available on the website of the Land Registry Agency. Currently foreign ownership of land is not possible in Bulgaria although this is set to change in 2014. Annual company accounts and tax returns for Bulgarian Ltd. 27.03.2017. Tax on purchase: Such value is calculated on the date when the inheritance is disclosed. Selling your Bulgarian property Selling your house, land or apartment is a very important action, particularly if it is owned by a domestic registered limited liability company in your name. 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. Properties that sold for €80,000 10 years ago are widely available now for €25,000. Historically Bulgaria property sales included the common practice of under-declaring the actual value of a property on the title deed in order for both the seller and the buyer to save on property taxes. Any subsequent property sold in the same year will attract around 10% tax on any profit made. The tax evaluation price is calculated with a formula that includes a basis tax value per sq m and correctional coefficients for location, quality of infrastructure, individual characteristic, height and age of the property. You reside in Bulgaria for not less than 183 days annually or 2. Our skill set covers all areas of work from Electrics to Bathrooms and roof repairs. If you sell a property in Bulgaria and you have a switched-on agent, it should be declared as your single and sole Bulgarian residence. If you work as an employee with only a labor contract, you are not required to submit a tax return. This system has the information structured on two sections, depending on its user: an administrative section and one customer section. Agricultural land is exempt from all local taxes. Professionals in Bulgarian Property Sales for Irish and British Investors We have been successfully representing Irish and British investors to Buy, Sell and Manage their properties in Bulgaria for over twelve years. You are considered tax resident in Bulgaria if you spend at least 183 days there per year or if your main resident home is located in Bulgaria. Some rural properties are billed as little as 15 Euros / year, other regular size Sofia apartments will typically be 150 Euros / year. Incorporates a company in Bulgaria and the entity owns the property. The fine is also very small. Done this way, there is no Capital Gains tax to pay. Property Tax. It provides some information on its website in English. The rates vary between 3.3% and 6.6% for all other beneficiaries. The buying process varies in Bulgaria depending on whether you buy an apartment or a landed property. Professionals in Bulgarian Property Sales for Irish and British Investors We have been successfully representing Irish and British investors to Buy, Sell and Manage their properties in Bulgaria for over twelve years. These taxes are due by March each year with liability for the previous year. These assumptions are critical. The Bulgarian Constitution does not allow foreign individuals to acquire land until 2012. Certain exemptions apply, among them that profits of CFCs with substantive economic activity will not be subject to Bulgarian tax. It shouldn't be a lot of money, and would certainly amount to far less than the tax for a similar property in Western Europe or the British Isles. Brief information on taxation is provided within the Living in Bulgaria guide. Ongoing property taxes: 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. Bulgarian Property Taxes. The last time the basis tax value was recalculated was in 2002.This makes Bulgaria the country with lowest property tax in the whole European Union. The withholding tax is levied on the gross amount of the rental income and no expenses can be deducted. Bulgaria Tax Residency. The tenant pays this tax over to the Bulgarian Authorities, quarterly, on your behalf. These have no reason to be expensive whilst still effective. Currently foreign ownership of land is not possible in Bulgaria although this is set to change in 2014. 1. An annual return is due by 31 March following the relevant tax year end. The governing legislation in Bulgaria regulating the legal aspects of the subject is the Bulgarian Inheritance Act (Bulgarian: Закон за наследството). Bulgarian VAT Obtaining a Bulgarian ID card is a precondition to be granted tax residence of Bulgaria. Transactions with the underlying plots of the buildings are subject to the same rules. If the rent is payable to a non-Bulgarian tax resident, a 15% withholding tax is levied. These laws affected commerce, foreign investments, insurance companies, tax collecting, banking, and more. There is an inheritance and gift tax of between 0.4% and 6.6%, depending on the relationship of the beneficiary. You must do it if you are freelancer or work both like employee and freelancer. It is not their sole or principal residence. Brief information on taxation is provided within the Living in Bulgaria guide. This system has the information structured on two sections, depending on its user: an administrative section and one customer section. Homestead Exemption is a savings allowed for those property owners who own and live at their primary residence. Bulgarian Capital Gains Tax : For non-residents, withholding tax of 10% is deducted from Income derived from the sale or exchange of property – this is determined as 90% of the difference (if positive) between the selling price and the acquisition cost. If a building is built on a State or municipal plot, the value of the plot will also be included in the tax base. Verila 5 1463 Sofia, Bulgarien Tel: (+359) 2 868 45 99 E-Mail: office@ruskov-law.eu 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. 1. Once the local Tax services have the property declaration they can calculate your annual taxes and waste collection fees. Heirs at law or by will are required to pay inheritance tax except from the surviving spouse and heirs in direct line. If the tenant is a Bulgarian company, the tenant w ithholds tax @ 10% from gross rents with no deduction for costs. Notary Public’s Fees. Once you purchase a property in Bulgaria you have to declare it in the local Tax services. Once you have established a Bulgarian company, you have to do an annual company tax reports and declaration. The agency was founded in 2002 by Bulgarian property experts Nic Stoyanov and Orlin Orestov. Heirs at law or by will are required to pay inheritance tax except from the surviving spouse and heirs in direct line. The buying process varies in Bulgaria depending on whether you buy an apartment or a landed property. Inheritance law regulates the financial consequences that arise as a result of the death of individuals, as well as the subsequent transfer of their assets. Nevertheless, the WHT rate may not … The rule of thumb: sell one property per year tax free. Once you have established a Bulgarian company, you have to do an annual company tax reports and declaration. Once you have accepted an offer for your property and a deposit has been collected the conveyancing procedure must get underway. Option one above is valid only if an apartment or a house is bought without the land. Bulgaria-domiciled individuals are subject to inheritance tax on inherited property both located in Bulgaria and abroad. In english it is " tax house" . For more details see the Data FAQ Verila 5 1463 Sofia, Bulgarien Tel: (+359) 2 868 45 99 E-Mail: office@ruskov-law.eu Income tax on individuals is 10%. Ongoing property taxes: 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. As part of the Nyama Problemi Ltd group of sites, it was determined a real need for a property repair service covering the smaller repairs. You are considered tax resident in Bulgaria if you spend at least 183 days there per year or if your. However, the foreign individual can purchase the land via a Bulgarian registered company. To obtain Bulgarian tax residency you are not required to stay for 183 days in Bulgaria. A foreign domiciled person is subject to inheritance tax only on property … Capital Gains: The sale of real estate by nonresidents in Bulgaria is subject to 10% withholding tax on the net gains received. To obtain Bulgarian tax residency you are not required to stay for 183 days in Bulgaria. 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. The corporate tax in Bulgaria is only 10% flat rate compared to 33.9%+ in Belgium, 33.3%+ in France and 25%+ in Austria. You reside in Bulgaria for not less than 183 days annually or 2. Option to pay per Job or time spent. If the rent is payable to a non-Bulgarian tax resident, a 15% withholding tax is levied. The Bulgarian tax authority is the National Revenue Agency. Due to the Integrated Information System for Cadastre and Property Registration (IKAR, founded in 2008) all information on Bulgarian properties are publicly available on the website of the Land Registry Agency. Property tax covers the cost of registering the title deeds with the municipality and is equal to 0.15 per cent of the purchase price. The exact percentage depends on the local Municipality. A flat tax rate of 10% applies to all personal income, with some exceptions. The request for issuing this paper could be submitted only by the owner of the property or his legal attorney. Local Property Tax (Rates): are payable quarterly and vary per region / Municipality. Properties that sold for €80,000 10 years ago are widely available now for €25,000. Any rental income you have from the property is subject to 15% Bulgarian withholding tax. 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