You have a residence permit in Bulgaria? You are not a resident of Bulgaria, but have incomes in the country, buy a car, sell or rent your property for rent? What are the taxes in Bulgaria you have to pay? Read about it below.
Income tax (income tax)
According to the Bulgarian laws, non-residents are taxed on income earned only on the territory of Bulgaria. Bulgarian tax residents are taxed on all income, regardless of geography of origin.
Explanation: a resident is a foreigner who stays in Bulgaria for more than 180 days in a year. To this category belong, as a rule, foreign citizens who have Bulgarian residence permit or right to work in the country.
Individuals
Individuals, both residents and non-residents are liable to income tax at a fixed rate of 10%.
To taxable income includes salary, profit from business activities, lottery winnings, royalties and dividends received by founders and the holders of shares in Bulgarian and foreign companies operating on the territory of Bulgaria.
Income from dividends paid by Bulgarian companies to nonresidents of Bulgaria, is taxed at 5% at the source of payment.
Residents of Bulgaria are taxed on income from dividends received within the country and abroad at the rate of 10%, reflecting the income on your tax return.
The legal entity
Legal entities pay corporate profit tax at the rate of 10%. Costs incurred by a legal person in receipt of income are deductible from the taxable amount.
Subjects of taxation are Bulgarian and foreign companies, including nonprofit organizations. For the Bulgarian companies and resident includes all income received by the legal person for non-residents, only income obtained in the territory of Bulgaria.
Explanation:a Resident is any legal entity with the actual address on the territory of Bulgaria and is listed on the national register of legal entities.
Corporate tax transferred to the state budget once a year not later than 31 March.
Tax on capital gains
Tax on capital gains considered a part of the profit tax is paid at the rate of 10% to both physical and legal persons. The taxable base is calculated by deducting from the purchase price of movable or immovable property prices sale. In the case of real estate the payer is provided with deduction in the amount of 10%.
Rresidency Bulgaria are required to reflect the amount of capital gains in the tax return. Upon the occurrence of taxable income from non-residents, tax is withheld by the state at the source of payment.
More about tax on capital gain when selling housing, and other types of fees related to real estate, see: real estate Taxes in Bulgaria
VAT
The rate of value added tax in Bulgaria is 20%. The reduced rate set for hotels and owners who give their property for rent, in the amount of 9%.
A zero rate of VAT applies in respect of Bulgarian exports and international transport services.
Enterprises with annual turnover less than BGN 50 thousand are exempt from VAT.
Note: when purchasing a new property from the developer worth more than 50 000 BGN, the buyer pays VAT at the rate of 20%. of the amount exceeding the established limit. As a rule, VAT is included in the price of the object.
Patent fee
Entrepreneurs who have patents with an annual turnover of less than 50 thousand leva per year instead of income to pay the patent tax. The rate of patent fee is determined depending on the type of activity and is set by the tax authorities at the beginning of the calendar year.
The patent fee payable quarterly or in a lump sum until the last working day of the current year. Lump sum payment, the patent owner receives a discount of 5%.
Vehicle tax (eco-tax)
When buying a car in Bulgaria, established the following fees:
- New car – 138 BGN (70 €);
- The car is not older than 5 years 194 BGN (99 €);
- The car is over 5 years old – BGN 260 (133 €);
- The car is over 10 years old – BGN 275 (140 €).
In 2017 with the purchase of an electric vehicle or a vehicle with a hybrid engine not older than 5 years in favor of the state will have to pay 102 leva (52 €).
Environmental fee pay both legal and natural persons. Payment is made twice a year. Lump sum payment is encouraged with a discount of 5%.
