Bulgaria Tax Overview (2025)
Value Added Tax (VAT)
Standard Rate: The standard VAT rate in Bulgaria is 20%.
Reduced Rate: A reduced VAT rate of 9% applies to specific goods and services, including hotel accommodations, books, and certain other designated products.
It's crucial to check the current list of goods and services eligible for the reduced rate as it can change.
Scope: VAT is levied on the supply of goods and services within Bulgaria, as well as on imports.
Exemptions: Exports are exempt from VAT. Certain financial services, such as insurance and banking, are also VAT exempt.
The specific exemptions should be confirmed with a tax professional or by consulting the Bulgarian VAT law.
Legal services may or may not be exempt, so checking the current regulations is essential.
Registration Threshold: Businesses with a turnover exceeding BGN 100,000 in the previous 12 months are required to register for VAT.
VAT Account: VAT registered businesses are required to open a dedicated bank account for VAT payments and refunds.
Reporting: VAT returns are typically filed monthly.
However, there might be specific cases where other reporting periods apply. Consult with a tax advisor.
Real Estate Tax
Rate: The annual real estate tax rate ranges from 0.01% to 0.45% of the assessed value of the property.
Determination: The specific rate is determined by the municipality where the property is located.
Contact the local municipality for the applicable rate for a specific property.
Transfer Tax
Scope: This tax is levied on the transfer of ownership of real estate and vehicles.
Rate: The transfer tax rate ranges from 0.1% to 3%. The exact rate depends on the type of property and the municipality.
Inheritance Tax
Scope: Inheritance tax applies to individuals inheriting property located in Bulgaria.
Rates:
Close Relatives: The inheritance tax rate for close relatives is 0.4%.
Other Relatives/Non-Relatives: The rate for other relatives and non-relatives can go up to 6.6%.
The specific rate depends on the degree of kinship.
Exemptions: There are exemptions for inherited property valued below a certain threshold.
The current threshold should be confirmed with a tax advisor or by consulting the Bulgarian inheritance tax law.
The previously mentioned BGN 250,000 exemption may not be current.
Important Notes:
Currency: BGL (Bulgarian Lev) has been replaced by BGN (Bulgarian Lev).
Tax Laws are Subject to Change: Tax laws and regulations are subject to amendments.
It is crucial to verify the latest information with a qualified tax advisor or by consulting official sources, such as the website of the National Revenue Agency of Bulgaria.
Professional Advice: This information is for general guidance only and does not constitute professional tax advice.
It is highly recommended to consult with a tax specialist for specific advice tailored to your situation.
This is especially important for complex transactions or situations involving significant amounts.
This updated text provides a more accurate and current overview of the Bulgarian tax system.
However, it is vital to remember that official sources should always be consulted for the most accurate and up-to-date details.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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