Bulgaria offers one of the best taxation laws in Europe to stimulate economic activities, foreign business and property investment. The country is now part of the EU and all EU citizens benefit from special taxation treatment.  They are taxed as local persons and can take advantage of the attractive taxation in Bulgaria.

There are two groups of tax liable persons – physical persons and companies.

Physical persons’ incomes taxation in Bulgaria is applicable to physical persons who own apartments in Bulgaria.  For property owners, who have houses or plots of land in Bulgaria, corporate taxation is applicable in as they have established limited companies in order to own property in Bulgaria.

Corporate income taxation is applicable to the net profits of Bulgarian companies from their trading activities. This means that if you are a foreign person and you have established a company in Bulgaria in order to buy a house or land, when renting or selling the property on behalf of the company, you are entitled to pay corporate tax.

The tax rate is calculated on the difference between the total incomes of the company for the year less the total expenditures. All Bulgarian companies submit tax declarations and pay their annual corporate taxes by March 31st each year.

There are no tax free corporate incomes and no matter how long the property is owned by the company, the company always pays taxes in case of property sale or rent.

All Bulgarian companies must submit tax declarations by March 31st no matter if they have traded or not – this is compulsory and all companies should have an accountant to take care of this.  

Georgios Manolis & Sons Real Estate, with its in-house lawyers and accountants can assist you in all taxation issues throughout the process of buying and/or selling your property.