Taxation information

Taxation in accordance with the real estate ownership

The tax imposed on real estate assets is 0.15% of their tax valuation per year. The valuation is in accordance with Addendum No 2 of the Local Taxes and Fees Act. Additionally, the owners of real estate properties have a rubbish collection fee /communal tax/ which is different depending on the local regulations of each region. The fee is determined every year by the municipal council.

Transferring abroad the incomes, realized in Bulgaria

Foreign investors can repatriate their profit realized in Bulgaria without any restrictions after they prove that all due taxes regarding their incomes in Bulgaria have been paid.

Taxation of foreign individuals

The taxation of the annual incomes of foreign individuals in Bulgaria /if they reside in the country for less than 180 days per year / is 10% withholding tax

The dividends accounted from Bulgarian companies in benefit of the shareholders in the respective company will be taxed with “final tax” which is always in the amount of 7%. These incomes will not be included in the total income described above.

Corporate taxation

The companies pay “corporate tax” in the amount of 10% of the net income for the respective year /on an annual basis/.

Value Added Tax (VAT)

Transactions with agricultural land and the lease of property for residential purposes to physical persons (individuals) are exempt from VAT. All other real estate transactions are subject to VAT at the uniform rate of 20%, assuming that the seller is VAT registered. The buyer is entitled to a VAT refund if it is a legal entity registered under the VAT Act.

/Please contact us if you require further information on taxes in Bulgaria. /