Bulgaria Immovable Property Tax : minfin.bg

Organization : Ministry of Finance
Facility : Immovable Property Tax
Country : Bulgaria
Website : https://www.minfin.bg/en/778

What is Immovable Property Tax?

The tax treatment of immovable property is regulated in Articles 10 to 28 of the Local Taxes and Fees Act. Immovable property tax is levied on lots, buildings and parts of buildings located within the territory of Bulgaria which are situated within the development limits of the nucleated settlements and the dispersed settlements, as well as the lots outside such development limits which, according to a detailed site development plan, have the assigned use under Item 1 of Article 8 of the Spatial Development Act (for residential, public-services, manufacturing, storage, resort, country-house, sporting or recreational functions, for green spaces and landscaped links between green spaces and nature-conservation areas, for decorative water features, for public access and transport, including bicycle paths and for movement of people with disabilities, etc.) as well as after the intended purpose of the land is changed, when required by a special law.

Related / Similar Facility : Bulgaria Tax On Insurance Premiums

Who are Taxable Persons?

The taxable persons are:
** the owners of taxable corporeal immovable property;
** if a real right to use has been created, the taxable person is the user;
** if a concession has been awarded, the taxable person is the concessionaire. Where an extraction concession has been awarded, the taxable person shall be the owner, with the exception of cases where a right in rem to use the lot or the relevant part of the lot has been created in favor of the concessionaire;
** the owner of a building constructed on a state-owned or municipal-owned lot is furthermore taxable in respect of that lot or the proportionate part of it;
** in respect of an immovable constituting state or municipal property, the taxable person is the person whereto the immovable has been allocated for management.

Note:
Where the right of ownership or the limited real right to a taxable corporeal immovable is held by several persons, the tax liability applies to these persons in proportion to the parts appertaining to them. Immovable property tax is payable irrespective of whether the corporeal immovable property is used or not.

Taxable Amount of Immovable Property

The taxable amount for taxation of residential and non-residential property owned by individuals is the tax assessed value of the immovable property, which is determined at rates specified in an annex to the Local Taxes and Fees Act. The taxable amount for taxation of residential properties owned by enterprises is determined in the same way. The taxable amount for taxation of non-residential properties owned by enterprises is the higher of their book value and the tax assessed value according to the above-mentioned annex to the Act.

How is the tax assessed value arrived at?

The tax assessed value of corporeal immovable property is determined at rates specified in an annex to the Local Taxes and Fees Act depending on the type of the immovable property, its location, surface area, structure and depreciation, and is communicated to the taxable persons.

Rates of Immovable Property Tax

The tax rate for immovable property is determined by an Ordinance of the Municipal Council within the range of 0.1 to 4.5 per thousand on the tax value of the immovable property;

Deadlines For Submission of Immovable Property Tax Returns

According to Article 14 (1) of the Local Taxes and Fees Act, the owner of any newly constructed immovable property which is not to be commissioned pursuant to the Spacial Development Act is required to notify the municipality exercising competence over the situs of the immovable property of such construction within two months by submitting a tax return for levy of an annual immovable property tax.

A declaration with the data necessary for determining the tax on the newly constructed buildings and/or self-contained works therein which are subject to commissioning according to the procedure established by the Spatial Development Act shall be submitted by the contracting entity within a 2-month period after the completion of the rough construction work on the building.

Companies have to report within 2 months the book value or any other information relevant for a tax assessment for each newly constructed or otherwise acquired immovable property or limited real right thereto.

Upon remodeling and alteration of the assigned use of an existing building or of a self-contained work in a building, as well as upon alteration of any other circumstance which is relevant to determining the tax, the taxable persons must notify the municipality by submitting a declaration within two months.