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.