Maintenance of real estate in Bulgaria

Information about Bulgaria. Geography, history, population, map, coat of arms, visa
Responsibilities of owners, taxes and fees, leasing, asset management companies, real estate.

TAXES, PAYMENTS, utility payments

Taxes on property in Bulgaria, two: it is a property Dank and Dachshund bits otpadtsi. The first of these is typically 0.15% of the value of the property tax assessment for individuals and businesses to 0,15% of book value of property (book value - the total original value of fixed assets of enterprises to be taken into account at the time of their performances on record in the balance sheet).

Dachshund bits otpadtsi - the so-called communal tax is determined by the municipalities (as a rule - 0,2-0,3% of book value). He is, in fact, the fees for garbage collection, which produce the inhabitants of the property. It is ironic that its size is not determined by the number of living and of the value of the object, and it is not more than 1% per year. This percentage also depends on the prestige and transport congestion area. For example, in the elite center of Sofia, it will be about 1%, and in the suburbs - less than half a percent. Situation is similar in other regions - the property away from the big city, so Dank estimates below.

Need to pay taxes every year, until April 1. If you pay taxes on the property and fees for garbage disposal in a lump sum (without breaking it on the quarterly payments) until March 31, a 5% discount. You can pay the tax immediately, but dividing it into four parts, but the discount is not available.

Payment for electricity in Bulgaria is about ? 0,10 per kW ? h per month average family of three spends about ? 25-50. Water consumption will cost the owner of ? 0,50 per cubic meter, an average of approximately ? 5 per month if you consume water sparingly. The subscription fee for landline phone numbers about ? 5 per month, and for its installation would have to pay ? 100.

To assume control of these processes, ie, pay taxes and utility payments for the owner, can either be managing companies (see "Management Company"), or realtors who carried out the procedure for acquiring, if the buyer used the services themselves.

Regarding other expenses, Bulgaria has never been a country road. In 2008, according to a study conducted by the Office of Post and Telegraph, Britain, Bulgaria was recognized as the cheapest country in Europe for tourists. For example, lunch in a Bulgarian restaurant you can for ? 10-15 in the light tip, and liter of petrol in Bulgaria, worth about ? 1.


Market rental properties Bulgarian authorities do not control separately, harsh environment in the country is not, so the lease is made directly between two persons in almost any conditions.

Surrendering property to rent, the owner must pay income tax, which amounts to 10% obtained them from the tenant the amount. The tax rate is always fixed.

Rent an apartment in Sofia, will bring its owners an average of 6,4% of its value per year without deduction of taxes (as of May 2008). Thus, the "recapture" full cost of the capital's housing will be for 17 years, if not consider changing the rental rates and rising prices for real estate. In some areas of Sofia, where the profit is about 7% per year, to compensate for the money spent can be even earlier.

More difficult to pass property at sea and mountain resorts - Bulgarian climate is not conducive to year-round demand for this market segment. Ski resorts in demand in the winter months, golf resorts - about eight or nine months a year, as demand for apartments and houses near the sea in some cities is high only for four or five months. Most profitable with the rental terms are resorts in South Bulgaria: Sunny Beach, Elenite, Sozopol, where the season lasts from May to October. Almost all year round lasts season in spa resorts, but the rental market there is still under development. In any case, any leased property,
give a net gain not more than 3-5% per year.


If the owner is not always possible to come to Bulgaria, then in order to pay taxes, utility payments and receive the rent, it most convenient to use the services of a management company. The market in Bulgaria has long existed and is well developed. Management companies themselves pay the bills for electricity and for water consumption, as in the rent, this amount is not included. Subsequently, this amount will be charged the company with the owner.

Management company itself is looking for a tenant and for a certain percentage rents him an apartment or house. Typically, the company guarantees a certain annual income and a decent state of the apartment, but this time you should find out directly on site with representatives of the organization.

In the case of buying an apartment in an apartment complex to find and select such a company will simply because they are usually created by the developer. For the amount of ? 6 to ? 15 per square. m per year management companies shall protect and support the entire complex, including the cleaning of common areas (with the possibility for more money and agree on the cleaning of private apartments).

If you buy a house or apartment in a building, you will have to seek the company independently. Note: if a company promises you gain more than 5% per annum, then it probably is not true.


In Bulgaria there are no restrictions on the resale of property by foreigners, but the seller would have to pay value added tax and tax on capital gains.

If the value of real estate since buying increased, then the owner of the resale must pay the state 10% of the difference (if the apartment is not the only one in Bulgaria). If the apartment and was the only permanent place of residence of the owner more than three years, this collection of charge.

Value added tax is 20% of the market price of the property. There are some exceptions relating to the sale of land. For example, agricultural land not subject to VAT. VAT is usually immediately included in the price of the object, that is, despite the fact that he is officially charged with the seller, the buyer actually pays it.

Secondary real estate market in Bulgaria is currently in its infancy, little developed, so sell your item, as many analysts, will be difficult. In any case, if the potential seller does not wish to engage in the sale of its own object, you should contact the real estate agency, but one which offers not only new buildings.

As the money received, then foreigners can repatriate their profits without limit, obtained in Bulgaria. But only after they prove that all due taxes on these earnings are already fully paid for.


Register company will cost you, according to approximate estimates, at ? 500-700. This company should be engaged, that is, an accountant will be required to provide annual tax report (approximately ? 150-200 per year). When you open a company, you must transfer to its account an amount not less than 5 thousand leva (about ? 2500) for the account of a natural person in Bulgaria could be the sum of 10 leva, but with a score of companies to do so would be impossible, because the bank can cover him, if funds for maintenance will not be enough. More information about the minimum amount in the account should know in the bank.

The account is opened without problems. The only thing that should give a foreigner - Bulgarian address where the bank should send correspondence, and their own passport with valid visa. Difficulties with the opening of accounts in the name of foreigners in Bulgaria were recorded.

More information about the process of incorporation

1. We should find out how the company will be called, who will be its founder, what type of business you create. There are four types: LTD (Limited Liability Company, established by one natural or legal person), Ltd. (LLC, established by a group of persons or companies), AD (JSC), ET (private entrepreneur). In the case where the legal entity created to purchase land, typically choose the first type of company, LTD.
2. You must collect the following documents: copies of passports of foreign and civil, lease office (this may be the address of an accounting firm, which has already been chosen to maintain a legal entity), information from the Bank of requisite amount in a suspense account of the authorized fund (5 thousand levs as mentioned above).
3. All documents shall be certified by a Bulgarian notary. It should also assure the authenticity of the signature of the founder. More will need to complete and sign a package of forms, which would then be sent to institutions.
4. If you want to reassign the procedure itself of the documents the chain of command lawyer who can help with registration and obtaining a package of documents, you have to draw on his power of attorney.
5. When all is done, and paid taxes, one of the persons - lawyer, trustee or direct parent company - is drawn to the agency vpisyvanija. This new agency, dealing specifically with the registration of legal persons. In it you will receive a certificate of registration of the firm. Simultaneously, the announcement of the establishment of your company appears in the State Gazette of Bulgaria.
6. Upon completion of registration money from the account of the company will need to be translated into a permanent account.

Market professionals and people who have already bought property in Bulgaria, recommend that if you want to open an account, ask for help from lawyers, because the procedure is not easy and, most recently in Bulgaria during the registration of the company were often denied (with all that, the fee will be charged in any case, even when the decision is negative). Help lawyer reduces this problem to zero. It is also likely that the periods of bodies stretched on the anticipated week to a month, and then to two. To this must be prepared.

An accountant's report will cost you 300-400 leva (? 150-200). If your company would actually work, then this amount will be higher. Contents of the bank account of the company amount to approximately ? 12 per year. No one is surprised that the company knowingly filed, so there is no fear of a forced liquidation. It should only pay taxes regularly. The reason for such a liberal policy of the Bulgarian authorities is that the owner of the company and, accordingly, real estate, and so makes a profit of Bulgaria, living and spending money on its territory. In fact, anywhere in the world the firm is not obliged to immediately generate income and maintain rigorous activity, so that everything happens in accordance with the law.

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