Immovable property
Last reviewed 02 Mar 2023
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
Objects 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 estated 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
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 follwing 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
