Taxes in Bulgaria on real estate 2019

Property taxes in Bulgaria for Russians in 2019

One of the most persecuted crimes in European countries is tax non-payment. InBulgaria, of course, is not all right with this, but with regard to foreigners, you can be sure that they will be followed and punished. In Bulgaria, the tax rates are not high. For example, income tax, unlike in Russia, is only 10%. Which is good news. It is worth remembering that becoming the owner of real estate in Bulgaria, you need to register for tax within two months, counting is conducted from the moment of purchase. It is better not to joke with this, because you will be lucky if everything costs a fine, otherwise, everything can be much worse.

In the tax inspectorate in Bulgaria, you will be forced to fill out a rather thick form concerning the properties of real estate (the material of the walls, the presence of an elevator, the year of construction, the presence of additional insulation, etc.). It is on the basis of this form that the real estate tax rate is calculated, which must be paid annually.

The tax rate in Bulgaria for the purchase of real estate is calculated from the value of real estate according to the cadastre. It is worth noting that the tax is not taken from the market value of housing, namely from the cadastral value, specially calculated by the state, to pay the real estate tax.  This cost is sometimes several times lower than the market. It's nice to know that if you purchased a property for 30 thousand euros, and its cadastral value is 15 thousand, then the tax is charged from 15 thousand !

The rate of the property tax paid annually is equal to 0.15% of the cadastral value of the property.

 Property taxes in Bulgaria for Russians - Useful advice

Before buying a home, be sure to ask the seller to provide a certificate of the cadastral (tax) value of this property. It is this cost that should be safely indicated in the contract of sale, such a move will allow you to reduce the fee when processing documents with a notary. Unlike in Russia, Bulgarian notaries really bear full responsibility for the papers that they certify. We are not aware of cases of non-compliance of the apartment, and cancellation of the contract on this basis. At the same time, in the preliminary contract, it is worth specifying the real price for which you are going to buy a house in order to protect yourself from unnecessary problems. The fact is that notaries treat different prices in preliminary and main contracts with understanding.

In Bulgaria, the payment of real estate tax is made in four equal parts, the first part until March 31, the next until June 30, then until September 30 and the last until November 30. It is worth noting that if you decide to make the entire amount at once in the first payment, then the state provides you with a nice bonus – a 5% reduction in the tax rate!

However, if the property tax is not paid on time, expect serious trouble.  When applying for a visa, as for a real estate owner, you must submit a document confirming the payment of tax. Without providing it, you will be denied a visa! Secondly, the tax service will apply penalties. If the tax has not been paid for several years, the property will be seized and sold without your consent. Of course, the remaining funds after deducting fines and taxes will be returned to you, but getting back to Bulgaria will be a problem!

Collection for the removal of household waste.

Together with the property tax, it is necessary to pay a fee for the removal of household waste. The rate of this fee is determined by the municipality. The average rate is from 0.15% – 0.25% of the tax (cadastral) value of housing and is collected by the tax service.

Utility rates.

Utility bills (gas, electricity, water) in Bulgaria are paid based on meter readings. If you do not consume these services, then you will not have to pay. There is no separate payment for common household property (payment for housing) in Bulgaria. If you bought an apartment in a hotel or residential complex, for the maintenance of the common property of the complex, the management has the right to collect a fee according to the contract. Property taxes in Bulgaria for Russians in general, as well as for other nationalities, are not large. So buy safely.

You can also read about real estate in Italy and mortgages in Spain