Taxes in Bulgaria
Paying taxes for owners of real estate in Bulgaria
Please note that property owners pay two types of fees:
- Tax on real estate - 0.15% of the taxable value of the property
- Tax on land - 0.15% of the taxable value of the land
The taxable value is determined by the territorial tax service.
Within two months from the date of acquisition of the real estate or land in Bulgaria the owner must declare it to the local tax authorities
- Tax of waste disposal -0.15-0.25 % of the taxable value of the property. It is determined by the local authorities and depends on the location of the property. It must be paid with the real estate tax.
The property tax and the tax of waste disposal can be paid at once to March 31 with 5% discount, or on four equal installments by 31 March, 30 June, 30 September and 30 November without discount.
Water - 0.5 Euro / m3
Electricity - 0.10 cents (night) - 0.17 cents (day) / kWh
In residential complexes in Bulgaria you may be charged for additional services that include security planning, cleaning of common areas and apartments, maintenance and repair of common areas, swimming pool maintenance, etc. Fees are paid per square meter and are determined by providing services company.
Telephone - about 25 €/month
Internet – about 15 €/month
Types of taxes:
1. Income tax - 10%. Tax is paid to the Republican budget. It must be paid in advance every month to 15th in the amount of 1/12 of the profit for the previous year. By the end of the year, depending on the actual profit will be made a correction:
- If the profit is more than last year's earnings, the difference will be paid
- If the profit is lower than last year, the excess amount goes to offset against future payments with interest rate of the National Bank. By new companies and companies that have had losses in the past year, the monthly payments are made on the basis of actual earnings for the previous month.
Since the beginning of 2010 the income tax is not a subject to foreign individuals and Bulgarians, who were owners of the property for three years.
2. VAT: 20%
Purchase and sale of agricultural land are exempt from VAT.
VAT are paying company with an annual sales of more than 50000lv ( 25 000 € )
3. The tax on vehicles: tax paid legal entities and individuals - owners of the vehicles. Taxed cars, trucks, trailers, buses, tractors, ships, airplanes, etc. The amount of tax depends on engine capacity and year of manufacture
1. to 37 kW inclusive - from 0.17 to 0.54 €/ kW;
2 over 37 kW to 55 kW inclusive - from 0.20 to 0.50 €/ kW
3 from 55 kW to 74 kW inclusive - from 0.27 to 0.83 €/ kW;
4 over 74 kW to 110 kW inclusive - from 0.56 to 1.69 €/ kW;
5 above 110 kW - from 0.63 to 1.89 €/ kW
Depending on the year of production the tax is multiplied by the following coefficient
Number of years from the year of production, including – over 14 years – coefficient 1
Number of years from the year of production- over 5 to 14 years including - coefficient 1.5
Number of years from the year of production - 5 years including – coefficient 2.8
The tax is paid in two equal installments on time:
The first part - up to March 31
second - until September 30.
Payment of the full amount of the tax in the first period gives you 5% discount.
4. To travel on the roads outside urban areas introduced a system of vouchers - vinetka (hologram stickerThe annual voucher for cars is 67 leva, for month - 10 leva, for a week - 4 leva
5. Taxation of individuals:
Tax on personal income is 10%.
All Bulgarian citizens and foreigners living in Bulgaria pay income taxes, as well as freelance employees. In cases where individuals are permanent residents of Bulgaria (including foreigners living in Bulgaria for more than 183 days per year), the tax is levied on income earned in Bulgaria and abroad. Foreign persons who live in Bulgaria for less than 183 days a year, pay tax on income earned only in Bulgaria. The tax is paid by 30th April. If full payment till 10th February - 5% discount.
6. Dividend income -5%