Tax on rental income in Bulgaria: what a private landlord owes

How much is the tax

For private individuals the tax is 10 % on rental income after deducting a 10 % statutory expense allowance. Example: at €500 a month the annual income is €6,000, the allowed expenses are €600, the taxable base is €5,400 and the tax is €540 for the year.

Who pays the tax

• The tenant is a private individual: you pay the tax in quarterly advance instalments (by the end of the month following the quarter, except for the fourth quarter) and file an annual tax return.
• The tenant is a company or a self-insured person: they withhold 10 % on payment and issue you a statement of amounts paid. You still declare the income, but the tax has already been paid.

The deadlines

1. Advance tax: by 30 April, 31 July and 31 October for the first three quarters (declaration under Art. 55 of the Personal Income Tax Act).
2. Annual tax return under Art. 50 of the Personal Income Tax Act: from 10 January to 30 April of the following year.
3. Payment of the balance: by 30 April. If you file electronically by 31 March there is a 5 % discount (up to BGN 500), provided you have no outstanding liabilities.

Which documents to keep

The contract, receipts or bank statements for every payment, and statements of amounts paid from company tenants. If rent is paid in cash, a receipt is mandatory. Livupp issues a receipt for every payment received and an invoice under Art. 114 of the VAT Act when the tenant is a company, so at the end of the year everything is in one place.

This article is general information, not tax advice. If you have several properties, operate through a company, or your income is above the VAT registration threshold, consult an accountant.

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