Tax declaration for property in Bulgaria – what do you need to know

When and in what cases do you need to submit a tax declaration for real estate in Bulgaria? Apart Estate experts will answer these and other questions. We will tell you about the procedure for filing a declaration, deadlines for paying taxes and special terms for receiving benefits.

The acquisition, inheritance and receipt of property as a gift in Bulgaria are subject to mandatory tax declaration. The real estate taxation regime in Bulgaria is regulated by Art. 10 – Art. 28 of the Law on Local Taxes and Fees.

The property purchase tax in Bulgaria usually ranges from 0.1 to 3% of the tax assessment cost or sales price. Additional bank fees are equal to 1% of the tax itself.

In accordance with the Law on Local Taxes and Fees of the Republic of Bulgaria, it is necessary to declare:

• Buildings, individual objects in buildings as well as land plots located within the boundaries of populated areas;
• Land plots outside the boundaries of populated areas, which, in accordance with the detailed development plan, can be used for purposes provided for in Art. 8, paragraph 1 of the Law on Territorial Planning;
• The actual built-up territory and the adjacent territory of the plots of land for agriculture and forestry with constructions and buildings on them;
• Acquisition of finished real estate, which, in accordance with the law, does not need to be put into operation;
• Property received by inheritance;
• Acquisition of the right to manage state or municipal real estate;
• Purchase or receipt of property from an enterprise, including acquisition of the right to use it;
• Obtaining the right to manage real estate;

Reconstruction or change of purpose for which an existing building, apartment, house is used.

The declaration is also submitted if it is necessary to correct the existing data.

Thus, residential, commercial and industrial buildings, apartments, plots of land and houses located within the boundaries of populated areas are subject to taxation. A tax declaration is also submitted for buildings or built-up areas of agricultural land and forests.

Procedure for filing a declaration

You can submit a real estate tax declaration electronically or at the administrative service centers at your location. This can be done by owners as well as users of property, concessionaires, persons granted the right to manage state or municipal property and their representatives. If the document is submitted by a representative, a power of attorney is required.

When submitting through the electronic service system, you must install a qualification certificate for a qualified electronic signature or a qualified electronic signature on your computer. You also need to have a profile in the electronic service system and Adobe Reader.

The procedure includes the following steps:

• Download the required application from the page “Sample Documents”;
• Save the form on your computer;
• Open it using Adobe Reader;
• Fill up all fields;
• Sign using a qualified electronic signature and create a unique application number;
• Check all the data, the presence of a unique number, save it on your PC and send it through the electronic service system, or simply click the “Request a service” button.

When submitting a declaration at a service center, the application form can be obtained and completed right there.

In addition to the application form, you may be required to submit other documents. The exact list depends on the specific circumstances. This is a property document, a certificate of inheritance, a death certificate, and a construction record. It is necessary to present a personal card or other identification document.

Tax declaration deadlines

The  Art. 14 of the Law on Local Taxes and Payments provides specific deadlines for filing a tax declaration. They depend on the method of acquiring real estate:

• When purchasing real estate or obtaining the right to manage or use it, the declaration must be submitted within 2 months.
• If real estate is received by inheritance, the declaration should be submitted within six months from the date of opening of the inheritance.

Please note that regardless of the deadline for filing the declaration, there is a certain procedure for paying taxes. The first payment is due by June 30, the second – by October 31. If you pay the full amount before April 30, a 5% discount will be applied.

The taxes can be paid online, at administrative service centers, post offices or payment offices.

Special tax benefits

The tax amount can be reduced not only if the full amount is paid before the end of April.

Under current law, if the primary residence is subject to tax, the taxpayer is entitled to a 50% discount.

If the property is used or owned by a person with a disability of 50% to 100%, the discount will be 75%.

Apart Estate specialists will help you buy an apartment or house in Bulgaria on the coast, in the cities of Burgas, Sozopol, Pomorie, Nessebar, or St. Vlas. We will help you properly prepare all documents related to real estate. You can leave your request by phone, via a convenient messenger or through a special form on the website.