What are the responsibilities of property owners in Bulgaria? How much one has to spend on taxes and fees, as well as on utilities? Find out the answer in our article.

Tax on Real Estate

In Bulgaria, as in most European countries, the owners regardless of citizenship should pay annual realty taxes. There are two of the taxes: property tax and utility one. This kind of tax is usually 0.15% of the value of the tax assessment of the object for private individuals. For legal entities, it is 0.15% of the book value (the full initial value of fixed assets of the enterprise, taken into account at the time of their registration in the balance sheet) of the property.

Utility Tax

It is determined by municipalities and is around 0.1-0.3% of the book value. It is, in fact, a collection for garbage removal.  Its size depends on the value of the object, 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 elite center of Sofia it is 1%, and in suburbs, it is less than half a percent. The situation is similar across the country. The farther realty is from a large city, the lower the tax.

It is necessary to pay taxes twice a year, till April 30. If you pay property taxes and taxes on garbage collection in one payment you will get a discount of 5%. You may make payment during the year, in four equal parts (the first payment – until March 31, the second – until June 30, the third – until September 30, the fourth – until November 30). However, in this case, the discount is not available.

Take control of these processes. Management companies or realtors who carried out the acquisition procedure, if the buyer uses their services may pay taxes and utility bills for the owner.

The amount of fees for housing maintenance is determined by the decision of the general meeting of the story property or by a notarized service agreement. If the property is located in houses and residential complexes equipped with elevators, concierge, with its own territory, security, swimming pools and other additional amenities, the fee will be from €5 to €15 per square meter per year. Talking about ordinary homes without the above advantages, their service will be cheaper – around € 5-10 euros per month for one person.