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Property ownership

The costs of owning a property in Bulgaria differ depending on the type and size of the property, the location, and other individual circumstances. However, as a general guide, owners should bear in mind the following:

• Income tax - non-residents are subject to tax on rental income earned from property in Bulgaria. Tax is currently levied at 15%, after deduction of allowable expenses. The UK has a double taxation agreement with Bulgaria.
  For tax purposes, a foreign national staying in Bulgaria for more than 183 days during a calendar year is considered a resident (they do not need to be consecutive days). Bulgarian residents are taxed on the total amount of worldwide income they receive during the calendar year.
• Annual property taxes – these are generally lower than annual property taxes in the UK – approximately 0.15% of the declared value of the property. In addition to the annual property tax, owners also pay waste-collection fees, which are nominal.
• VAT – this is generally exempt in transactions involving land and lease of property for residential purposes. However, as VAT is levied at 20%, it is important to clarify if the property is exempt or, if VAT is chargeable, if it is included in the purchase price.
• Community fees – if the property is in a residential complex an annual or quarterly ‘community’ fee will be charged to cover security, cleaning, maintenance, gardening, etc. This figure will vary from complex to complex but a guide figure is approximately €240 per year.
• Capital gains tax - this may apply in certain circumstances, for instance if a property is sold at a profit. Properties which are not the vendor’s primary residence are liable for capital gains tax if they are sold within five years of purchase; the tax, levied at 15%, must be paid immediately upon completion of the sale.
• There is no wealth tax or inheritance tax in Bulgaria.
• When selling a property, the fees such as registering deeds, notary charges, etc. are all borne by the buyer and not the seller.

Related items

Documents and Reports

	Bulgaria country guide (995Kb)
	Bulgaria property buying guide (687Kb)
	Bulgaria property investment report (426Kb)
Documents and Reports

Other related pages

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