Vehicle Tax

A local direct tax paid annually by the owners of registered motor vehicles (MVs) in Bulgaria. This tax is used to finance local government activities, most often related to road infrastructure. It is regulated by the Local Taxes and Fees Act. The taxpayer is the owner of the vehicle—either an individual or a legal entity—and in cases of co-ownership, each owner pays proportionally. The tax amount is set by a municipal council ordinance. Exemptions apply to persons with over 50% reduced working capacity for one vehicle, electric vehicles, vehicles owned by municipalities and the state, certain specialized machinery, and vehicles.