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

Object 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 estates 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-related taxes

Property tax

Objects of taxation

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 following 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

Contact

The TPA Group
Wiedner Guertel 13, Turm 24
1100 Vienna

Opening Hours:

Mo-Th: 08:00 – 17:00

Fr: 08:00 – 14:00

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