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Tax Advice
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Taxes which are due at the purchase of a property are proportional to the size of the real estate.
The tax on real estates is imposed on a yearly basis and its size is 0.15 % of the tax valuation of the property.The valuation is performed in accordance with Regulation No2 to the Law of Local Taxes and Charges.
In addition, the owners of real estates should also pay a waste collection tax which varies according to the regulations of local authorities. The size of this tax is assessed each year by the Municipal Council.
Transfer of incomes generated on the territory of Bulgaria to a country abroad.
Foreign investors can repatriate profit generated in Bulgaria without any limitations after they prove that they have paid all due taxes on the incomes of their business activity.
Taxes for physical persons
Taxes applied to physical persons in Bulgaria are assessed in accordance with the following progressive table:
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Income tax for physical persons (Bulgarian citizens) on the basis of annual income: |
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Up to 1440 levs – untaxable |
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From 1440 levs to 1800 levs - 12 % on the incomes above 1440 levs |
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From 1800 levs to 3000 levs - 43,20 levs + 22 % on the incomes above 1800 levs |
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From 3000 levs to 7200 levs - 307,20 ëåâà + 26% on the incomes above 3000 levs |
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Above 7200 levs - 1399,20 levs + 29 % on the incomes above 7200 levs |
The dividends paid by a Bulgarian company to the share holders are imposed with an annual tax of 15 % These incomes are not included in the annual income tax described in the table above.
Corporate tax
Companies and foreign citizens pay a corporate tax on an annual basis which is 15 % of the net income for the current year.
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