Taxation in Bulgaria
Corporate Income Tax Rate - 10%
• 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%
• 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
Dividends - 5%
• Dividends paid to legal entities which are tax residents in an EU/EEA member state - 0%
Interest and Royalties - 10%
• 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%
Transfer Pricing Documentation requirements:
• In 2010, the NRA issued TP Guidelines (based on the OECD TP Guidelines)
General rate - 20%
Reduced rate - 9% (for hotel accommodation)
Refund period - 2 months under certain conditions
Personal Income Tax- 10% (flat rate taxation)
Mandatory Social Security Contributions
Employer: - 17.4%
Employee: - 12.9%
Maximum monthly taxable base - BGN 2,000.
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.
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: email@example.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
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
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
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
All photos, texts, video clips, charts and banners on our website are property of our company or of our partners and are protected by the Copyright Act of the Republic of Bulgaria. Any unauthorized use of photos, texts, videos and other materials from our website by third parties will be subject to immediate claim on the part of the copyright owners. The information on our website is with information and advertising purposes. Alhtough we have made all efforts to provide accurate information, there may be some mistakes. For full and correct information is considered only the information received at the offices of Bulgarian Properties Ltd.