Here is an example with a property that costs 50 000 € HT (1 € = 2 BGL):
All previous taxes must be paid by the owner/seller. This should be confirmed by the Fiscal Authorities. We will also legally secure your purchase and supervise all legal aspects.
COSTS AND FEES
- Lawyer Fees: 1% = 500 €
The practice in BG will be to pay the following taxes based on the Tax Authorities evaluation which is usually around 30% of the selling price (here 15 000 €). This does, however, benefit the owner of the property when it comes time to sell. Some owners choose to list the full value and are more than willing to pay a higher tax amount. - Notary Fees: 1% = 150 €
- Deed of Sale: 2% = 300 €
- Notary Act: 0.1% = 15€
- In addition, a Variable Percentage of the Market Value of the property (1 to 5%) is paid to the municipality in which the real estate is situated.
- VAT Tax: You have to add the VAT (20% = 3 000 €).
TAXES
- Land Tax: 0.15% of the purchase price yearly.
- Annual Community and Waste Collection Taxes: 0.5% of the purchase price yearly.
- Property Tax: 0.1% of the purchase price. If this tax is paid by the 31st of January, the property owner or co. receives a 5% discount. Otherwise, this tax is paid on a quarterly basis.
- Capital Gain Tax: 15%
- Tax Exemption: If the property was your main residential premise, i.e., you have mainly lived at least 3 years at this location during the last 5 years. If the incomes are from selling up to two properties which were NOT your main residential premise, but in the case that you owned them for more than 5 years.
- Income Tax:
- Up to 1 440 BGL/annum = No Tax
- 1 440 to 1 800 BGL/annum = 12% of anything over 1 400 BGL
- 1 880 to 3 000 BGL/annum = 43,20 BGL + 22% of anything over 1 800 BGL
- 3 000 to 7 200 BGL/annum = 307,20 BGL + 26% of anything over 3 000 BGL
- 7 200 and over = 1 399.20 BGL + 29% of anything over 7 200 BGL
- Inheritance Tax: an example for spouses and heirs of direct descent
- Up to 15 000 000 BGL = non taxable
- From 15 000 000 to 50 000 000 = 0.1% for the amount above 15 000 000
- From 50 000 000 to 100 000 000 = 35 000 + 0.2% for above 50 000 000
- From 100 000 000 to 200 000 000 = 135 000 + 1% for above 100 000 000
- From 100 000 001 to 500 000 000 = 1 135 000 + 2% for above 200 000 000
- From 500 000 000 to 1 000 000 000 = 7 135 000 + 5% for above 500 000 000
- Above 1 000 000 000 = 32 135 000 + 10% for above 10 000 000 000
PLEASE NOTE: The above information represents only a simplistic overview of the tax implications involved in acquiring Bulgarian real estate. We suggest that you seek professional advice through the Notary or Knightsbridge Investment Group. In terms of Bulgarian Inheritance Tax, Notary advice should be taken in order to optimize your legal status.
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