Taxation Rates in Bulgaria
Transfer Taxes for Property Purchasers
The transfer of real estate is subject to notary, municipal (council) and state fees. The notary fees are paid on the sale price of the property with a maximum of BGN 3,500 (£ 1200). In addition, 2% of the sale price of the property is paid to the municipality in which the real property is situated upon completion.
The estimate of all taxes and fees the buyer will be liable to pay is between 2.5% and 2.7% of the sale price shown in the Notary deed. So if buying a £ 50K apartment the amount will be approximately £ 1250.
Local taxes and rates
The owner of an apartment is obliged to pay a real property local tax and rates. In addition to the real property local tax, owners also are liable to pay waste-collection fees. The total amount (equivalent to council taxes in the UK), is approximately 0.27 % of the tax value of the property (always lower than the sale/purchase price).
The owner of a 2-bed apartment is liable to pay an estimate of £ 75 per annum that includes all local taxes and rates in.
The above is merely a summary designed to give a broad overview of what is involved and what purchasers can expect.
Capital gains tax
UK citizens are not under Bulgarian tax laws – Double taxation treaties with the EU and the UK, therefore UK laws apply to their capital growth. However this is only if one sells a property. The property in Bulgaria is not valued every year to give a current price. It is strongly advisable that clients obtain professional advice when deciding which is best for them.
Inheritance tax
If it concerns a sale or giving the apartment as a gift - which you can do in Bulgaria - then Bulgarian law is applicable.
If it concerns inheritance then the law of the country of origin of the owner is applicable. If there are two owners - husband and wife with different origins, then the laws and the common aspects from the laws of both countries of origin are applicable.
The above is merely a summary designed to give a broad overview of what is involved and what purchasers can expect. The above information must not be used as a comprehensive legal and/or tax advice and professional advice should be obtained by solicitors and/or accountants. The Bulgarian Property Shop cannot be held responsible for the exhaustiveness and accuracy of the above information.
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