Property Tax

A local direct tax paid annually by owners (or users in certain cases) of buildings, apartments, houses, plots, and other real estate located within the territory of Bulgaria. It is regulated under the Local Taxes and Fees Act. Taxpayers are the owners of real estate – both natural and legal persons – and users who hold a real right of use over the property. In cases of co-ownership of a building, each owner owes tax proportionally to their share. The tax amount is determined by an ordinance of the respective municipality, usually as a percentage of the tax valuation. Exemptions apply to properties owned by the state and municipalities, certain cultural and religious sites, as well as, under specific conditions, the sole residence of a person with more than 50% reduced working capacity.