PROPERTY TAXES

A LUMP-SUM TAX WHEN OBTAINING PROPERTY

 

 If you obtain (buy) a property in Bulgaria you will be charged with a tax. The tax is responsibility  of the buyer of the property. The base for calculation of the tax is the property estimation (the sum) written in the Notary deed.

A lump-sum tax when obtaining property will be assessed by the Municipality of the region at which the property is located. Obviously the normal range of additional expenses, which include all the necessary taxes is about 3.6%-4.0% of the property estimation (the sum) written in the Notary deed.

 IMPORTANT!!! Except the taxes when the buyer obtains a property there are the necessary additional expenses for the lawyer fee and the translator fee.

 

 ANNUAL PROPERTY TAXES IN BULGARIA

 

The property owner in Bulgaria needs to pay the following taxes:  

 

1. Annual property (house) duty.

 

This is an annual tax for all the properties in Bulgaria, excluding the land, which has another tax. All the owners of the property in Bulgaria have to declare their it to the tax office in two months period of time from the obtaining the property (ownership). They have to declare full description of the property: year of the completion of the building, building materials, construction details, size, floor, price and etc. (Our lawyer service will help you with all this obstacles. Legal advices: http://www.festival.bg/legal_advices.html /.)

 

For companies the base for estimation of their property taxes is the company balance estimation. For person the base for estimation of their property taxes is the property estimation made by the Municipality service at the region. The size of property tax is 0,15% from the property estimation. The tax payments could be separated in four equal amounts, each in every quarterly – till 31 March, till 30 June, till 30 September and the last payment till 30 November. Company or person who makes their payment at ones till the 31 March receives a discount of 5% of the amount of the tax.

 

For example: Tax for property with property estimation 50 000 BGN (made by the Municipality service) will cost: 50 000:100x0,15=75 BGN.

 

 

IMPORTANT!!! Tax is calculated not from the market price of the property but from the property estimation made by the Municipality service at the region, and this is about 30-50% from the market price of the property.

 

2. Annual rubbish tax.

The amount of the annual rubbish tax is fixed by the Municipality of the region.

The annual rubbish tax is payable at the same time as the annual property tax. The amount of the rubbish tax for the person and the company is the same.

The normal amount of the annual rubbish tax is equal to the annual property tax.

 

3. Monthly expenses

Electricity: day tax 0.09322 BGN / kWh; night tax 0.04407 BGN / kWh.;

Water - 0,12-0,46 BGN for 3 m3;

Phone – monthly tax  – 11.50 BGN;

Internet – 24 – 32 BGN monthly.;

Cable TV – 14 BGN monthly.;