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How Many Taxes Will You Pay for Bulgarian Realty?

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Bulgaria in famous to be an inexpensive country in Europe. Pleasing property prices attract lots of foreign buyers to the winter and summer resorts. But sometimes property purchase can be overshadowed by taxes. Can this be applied to Bulgaria? Let's see.

Just like everywhere else in Europe, you have to pay property taxes annually, regardless of their citizenship. There are two property taxes in Bulgaria: real estate tax (Данък имот) and utility tax (Такса битови отпадъци).

Real Estate Tax

Real estate tax is usually 0.15% of the value of the tax assessment of the object for individuals. For legal entities-0.15% of the book value of real estate.

Read about: Hidden expenses of property purchase in Bulgaria

Utility Tax 

Utility tax is determined by municipalities – 0.1%-0.3% of the reported value. It is, in fact, a fee for garbage collection. Its size depends on the cost of the property, and as a result is up to 1% per year. The percentage also depends on the prestige and traffic congestion of the area.

For example, in the center of Sofia it is 1%, and in the suburbs it is less than 0.5%. The situation is similar across the country. The further the property is from a major city, the lower the tax.

If you pay property taxes and garbage collection fees in one payment until March 30, you will get a 5% discount. But you can also pay in stages over the course of a year, in four equal parts (the first payment – until March 31, the second – until June 30, the third – until September 30, and the fourth – until November 30). But in this case, the discount is not available.

Either management companies or realtors who carried out the acquisition procedure can take over the management of these processes, that is, pay taxes and utility payments for the owner, if the buyer uses their services.

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