Bulgaria property news and articles

In Bulgaria the issue of taxation is made more complicated by the fact that many foreign owners of property can own it either as individuals or through a company. This means that it is necessary to examine the tax implications for both cases. The matter is further complicated if buying as an individual, because your tax base will be dependent on your tax residence. Therefore below we have divided the discussion concerning tax into three sections:

• Other taxes payable in Bulgaria by non-resident individuals.
• Other taxes payable in Bulgaria by resident individuals.
• Other taxes payable by companies.

The current rate of VAT in Bulgaria is 20 per cent. If you buy a property as an individual or as a company from a VAT-registered company,you will have to pay 20 per cent VAT. The seller then passes on this VAT to the government.

VAT Registration
Companies are obliged to register for VAT if the value of their sales is equal to or exceeds 50,000 leva (around €25,500) in any period not exceeding 12 months. You can also choose to register for VAT even if you have no revenue at the time of registration.