Bulgaria Inheritance Tax : minfin.bg

Organization : Ministry of Finance
Facility : Inheritance Tax
Country : Bulgaria
Website : https://www.minfin.bg/en/780

What is Bulgaria Inheritance Tax?

The tax treatment of inheritance is regulated in Articles 29 to 43 of the Local Taxes and Fees Law. Inheritance tax is levied on the estate of any decedent Bulgarian citizen located within Bulgaria or abroad when devolved by legal or testamentary succession, as well as on the estate located within Bulgaria where so devolved by any decedent foreign citizen. A decedent’s estate incorporates the movable and immovable things owned by the antecessor and the rights to any such things, as well as the antecessor’s other property rights, receivables and liabilities at the time of the opening of the succession.

Related / Similar Facility : Bulgaria Transport Vehicle Tax

Bulgaria Inheritance Taxable Persons

The taxable persons are:
** the legal or testamentary heirs;
** the legatees.

Inheritance tax is not paid by the surviving spouse and by the lineal heirs without restraint.

Bulgaria Inheritance Taxable Amount

Any decedent’s estate, with the exception of such exempt from tax, is identified and valued in lev terms at the date of the opening of the succession, as follows:
** the corporeal immovables within the territory of the country: at the tax assessed value arrived at according to an annex to the Local Taxes and Fees Law;
** the foreign currency and the precious metals: at the central exchange rate of the Bulgarian National Bank;
** the securities: at fair market value or, where the fair market value cannot be established without considerable cost or difficulty, at nominal value;
** the transport vehicles: at the insured value;
** any other movable things and rights: at fair market value;
** enterprises or participating interests in commercial corporations or cooperatives: at fair market value or, where determination of the fair market value requires considerable expense or causes difficulties, according to accounting data.
** the corporeal immovables within the territory of another Member State of the European Union or of another State which is a Contracting Party to the Agreement on the European Economic Area or of any other third country: at a tax value stated in a document issued for taxation purposes by a competent authority of the respective State, accompanied by an accurate translation into Bulgarian language performed by a sworn translator.

Note:
The taxable estate is divided into portions, and each heir is allocated a portion according to the procedure established by the Succession Law. The tax is assessed and is communicated to each heir or legatee according to the procedure established by the Tax and Social-Insurance Procedure Code.

Rates of Bulgaria Inheritance Tax

The rate of the tax is determined by an ordinance of the Municipal Council separately in respect of each heir or legatee:
** applicable to siblings and the children of siblings: from 0.4 to 0.8 per cent per portion in excess of BGN 250,000;
** in respect of any other persons: from 3.3 to 6.6 per cent per portion in excess of BGN 250,000.

Time Limits For Submission of Returns

Within six months after the opening of a succession, the taxable persons or their legal representatives are obligated to submit a declaration to the municipality exercising competence over the last fixed abode of the antecessor. Any declaration submitted in due course by one heir benefits the other heirs as well. In the declaration, the heirs must itemize the decedent’s estate as inherited by type, location and value.