Glossary
Inheritance
The totality of property rights and obligations that pass from a deceased person (decedent/ testator) to one or more living persons (heirs) by law or by will.
Inheritance Tax
A local direct tax imposed on property inherited by law or by will (movable and immovable assets, property rights, receivables, and liabilities) located in Bulgaria or abroad by Bulgarian citizens, as well as on property in Bulgaria inherited by foreign citizens. The tax liability applies to heirs by law or will and legatees. The tax is administered by the municipalities and applies only to inherited property not exempted by law. It is regulated under the Local Taxes and Fees Act. The tax rate is determined by an ordinance of the respective municipal council and depends on the degree of kinship and the value of the inherited property. Exemptions apply to the surviving spouse and direct line heirs without limitation, as well as to heirs with inheritance below a statutory threshold.
Insolvency
A state in which a natural or legal person is unable to pay their debts on time.
Insolvency Proceedings (Bankruptcy)
A judicial procedure under the Commercial Act initiated against a merchant who has become insolvent or over-indebted, with the aim of satisfying creditors through liquidation of the debtor’s assets or by means of a recovery plan. In Bulgaria, a Personal Insolvency Act has been adopted, which regulates the procedure and conditions for declaring insolvency of insolvent, bona fide debtors, with the aim of fairly satisfying creditors and restoring the debtor’s financial activity.
Insurable Income
The income on which social security contributions are calculated and paid in accordance with the law.
Insurance
The assumption of risks in exchange for receiving a premium, whereby the insurer undertakes to provide protection to the insured upon the occurrence of certain events (risks) agreed in the insurance contract. The purpose of insurance is to provide financial compensation or other assistance in the event of adverse occurrences, thus safeguarding the property or personal interests of the insured persons.
Insurance
A product offered by an insurer that provides protection against specified risks. Purchasing insurance involves entering into an insurance contract and paying the premium in accordance with the terms of the contract. The insurance gives the insured or the designated third parties the right to receive compensation or other agreed benefits upon the occurrence of an insured event.
Insurance Agent
A natural person or a trader, registered and licensed under the applicable legislation, authorized to act on behalf of one or more insurers, to offer insurance products, provide information about coverage, and assist clients in concluding insurance contracts. The agent represents the insurer, not the insured or the policyholder.
Insurance Broker
A company or a sole proprietor, registered and licensed in accordance with applicable regulations, who carries out insurance intermediation on behalf of and for the account of the policyholder, insured, or beneficiary. The broker acts independently of insurers, offering products from different insurers, assisting in selecting the most appropriate coverage, and handling claims, while protecting the interests of the client.
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