Immovable property
Last reviewed 15 Jul 2024
Tax depreciation
Straight-line
over the expected useful life of the asset limited for tax purposes
Additional
N/A
Depreciation categories
Land
No depreciation
Buildings
Up to 4 %
Tax base for buildings
Acquisition costs evidenced by documents or valuation in case of contribution in-kind.
Special depreciation
N/A
Write-ups
Up to a maximum of the historic acquisition costs
Real estate income tax
Object of taxation
Capital gains from the sale of operative and private real estate (irrespective of the holding period) by individuals
Tax rate
10%
Tax collection
Self-assessed in yearly income tax declaration
Exemptions
Exemptions are applicable for 1 real estate held by individuals for more than 3 years and 2 real estates held by individuals for more then 5 years.
Property transfer tax
Object of taxation
Transactions resulting in transfer of ownership of land in Bulgaria, or of rights to use of land.
Types of property affected: land, buildings, additions, building rights, buildings on land owned by others; possibly avoidable in case of transfer of shares in companies.
Basis of assessment
Land: area
Buildings and their components, in two main categories:
- Households – assessment based on tax valuation by tax authorities
- Industrial and commercial buildings – assessment is based either on the carrying value, as set down in the accounting law, or on the tax valuation by the tax authorities (whichever is the higher amount)
Land: assessment based on tax valuation by tax authorities, or on carrying value in accordance with accounting law
Other constructions and their parts: carrying value
Tax rate
For real property, 0.1 % to 3.0 %
Property tax
Objects of taxation
General tax rate 0.1 - 4.5 0/00 property in Bulgaria:
- agricultural and forestry land
- real estate
- business assets consisting of company land
Basis of assessment:
- Households – assessment based on tax valuation by tax authorities
- Industrial and commercial buildings – assessment is based either on the carrying value, as set down in the accounting law, or on the tax valuation by the tax authorities (whichever is the higher amount)
Land: assessment based on tax valuation by tax authorities, or on carrying value in accordance with accounting law
Other constructions and their parts: carrying value
Real estate funds
Regulated by the Act on Special Investment Companies
Owner of the fund assets
Minimum required capital; EUR 250 000.
Annual valuation
Purchase or sale of real estates only following to valuation of independent expert valuator.
Borrowing
Maximum permissible: up to 20% from value of assets
Diversification of risk
Tax liability
Not subject to Corporate Income Tax
