Bulgarian Property Investing - For Profit

Bulgarian Property Investment Tax Basics The Bulgarian property tax structure may appeal to you if you are sick of paying inflated local fees in your area and are looking for something better. Many foreign investors and second home owners buy property in Bulgaria because the property taxes in Bulgaria are a lot lower than the property taxes in their locale. Bulgarian property tax is one of the most popular topics on property forums these days. The information below will help you cut through the confusion. PROPERTY PURCHASE TAX Chances are this will be the first Bulgarian property tax you will come across. When you buy property in Bulgaria, the property will be subject to a notary and a municipal tax. The notary tax is paid on the higher end of the market price or the book value of the property. You actual rates will vary and are usually less than 1%. Not to mention that 2% of the market value of the property is paid as a municipal tax. This money eventually goes to the municipality in where the property is situated. You will pay these taxes after you have signed the notary deed. ANNUAL PROPERTY TAX All property owners in Bulgaria have to pay an annual property tax just like anywhere else. The current annual tax rate for a house is 0.15% of the capital value of the property. So for example, if a house cost 20,000 on purchase, the annual Bulgarian property tax payable would be 30. Aside form this tax; the owners also have to pay a waste-collection tax. The rate for this greatly depends on the location and size of the place. The amount of tax that is payable is usually about