ARTICLES

Taxation in Bulgaria

BULGARIAN PROPERTIES

In this article we will present to you the taxes in Bulgaria which we believe you will find quite useful, whether you have decided to by a property to live in or for investment purposes.

Corporate Income Tax Rate - 10%

- Exemptions:
Special purpose investment companies - 0%
Collective investment schemes, admitted to public offering in Bulgaria, and licensed investment companies of the closed-end type - 0%

Capital Gains Tax Rate - 10%

- Exemptions:
Capital gains derived from sale of shares through the Bulgarian Stock market or a regulated market in an EU/EEA member state - 0%

Debt:equity ratio - 3:1

Tax loss carry-forward - 5 years



Withholding Tax

Dividends - 5%

- Exemption:
Dividends paid to legal entities which are tax residents in an EU/EEA member state - 0%

Interest and Royalties - 10%

- Exemption:
As of 1 Jan 2011 interest and royalties paid to associated companies* that are tax residents in an EU member state - 5%

Interest and Royalties paid to associated parties before 31 Dec 2010 - 10%

Interest and Royalties paid to associated parties after 31 Dec 2014 - 0%

Special features

Transfer Pricing Documentation requirements:
In 2010, the NRA issued TP Guidelines (based on the OECD TP Guidelines)

VAT

General rate - 20%

Reduced rate - 9% (for hotel accommodation)

Refund period - 2 months under certain conditions

Individual taxation

Personal Income Tax- 10% (flat rate taxation)

Mandatory Social Security Contributions

Employer: - 17.4%
Employee: - 12.9%
Maximum monthly taxable base - BGN 2,000.

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 the location of the real estate. The taxable base can be the market price, specifically determined tax value or the gross book value.
No tax for agricultural land and forests.

Other
Taxes on certain expenses (e.g. Social Security benefits), Vehicle tax, Donation tax, Inheritance tax.

*Associated parties the case when a company has a minimum of 25% in the capital of another company or when a third company has a minimum of 25% both in the capital of the other two companies. This association has to be maintained for uninterrupted period of at least 2 years

For additional customized advice and comments, please send us your enquiry.

Read about tax conditions for property investors in Bulgaria

---
Copyright: 2011 Bulgarian Properties Ltd. All rights reserved. For further information or advice please contact us on tel.: +359 2 9 11 50 or e-mail: info@bulgarianproperties.com. The use of this article by third parties is allowed only with proper quotations of the source www.BulgarianProperties.com and the Author of the article. The data in this material has been collected by the Author and Bulgarian Properties Ltd. and is presented for information purposes only. We have made every effort to ensure the accuracy of the data. However, Bulgarian Properties Ltd. cannot be held responsible for loss or damage as a result of decisions made based on the information presented in this article.
Bulgarian Properties Ltd. 2011.


  read more articles

Comments from clients
We had a very bad experience with an agent in Varna and had to find a new one to act for us in the ...
We would like to say a BIG THANK YOU Mr Sergey Pelovski for his efficient asisstance throughout all ...
We have already bought properties in Bulgaria and this time round it was wonderful to deal with ...
Read our answers to the most frequently asked questions when buying a property
Take a viewing trip around the properties with the help of our video clips!
List your property with us, no marketing fees!
Find out how we can help you sell your property
Our team of experienced lawyers can consult you on any legal matter
Latest News
Elena Makreеva is the new Regional manager of BULGARIAN PROPERTIES for the beach resorts

20/April/2018

Elena will be responsible for the offices of the company on the Northern and Southern Black Sea Coast.

She joined the company in 2013 at our Moscow office and later on moved to Bulgaria, where she became a real estate agent in Bansko and later - in Sunny Beach.

In result of the achieved excellent results and her personal competences and professional qualities, in the ... read more

LATEST REGIONAL NEWS
The Ski Season in Bansko will Last until 15 April

05/April/2018
http://www.novinite.com

The ski season in Bansko will last until April 15, when it will be officially closed. Over the past few days, snow has increased by about 30 centimeters in the ski center. In some places, the snow cover is now 2.50 meters. All the tracks are well-worked and all the facilities work. The prices of the lift cards are already reduced by 20%.

Currently there are hundreds of skiers from G... read more

DID YOU KNOW?
Bulgarian Wine Exports Rose by Nearly 13%

28/December/2017
http://www.novinite.com

Exports of Bulgarian wines grew by nearly 13 per cent in the first eight months of 2017, Deputy Economy Minister Lachezar Borisov announced at the Golden Winer Awards.

17 517 139 tons of wine production for 17 432 629 million euro were exported, according to the data announced by Boris... read more