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Changes In Bulgarian Tax Laws 2011

The general change in the property tax is that the maximum tax has been increased to 4.5% of the tax evaluation of the property. Even though there is an increase the municipalities will be the ones determining the exact amount of the tax.


There is no change in the property tax for purchasing real estate. It is also determined by each municipality and is in the range 0.1%- 3% from the price of the property.

A new "luxury" tax has been proposed, which means that properties with tax valuation higher than the average for the municipality will be imposed higher taxes. This "luxury" tax will even be applied on expensive cars, too.

Another change is that enterprises will have to pay property tax on an amount greater than their tax valuation.

Excise Duty

The excise duty on the tobacco will increase from 100 BGN per kilo to 152 BGN. There will be an increase also on the duty on the fuel, getting closer to the minimum for the European Union.

Insurance tax

A new tax on the insurance's premium has come into force since the 1st of January 2011. The tax amounts to 2% and is applied to the most popular insurances.


The VAT tax for hotel services will be reduced to 9% instead of the usual 20% after the 1st of April 2011.

Income tax

The tax policy implied to foreigners who are registered for tax purposes in offshore areas and who generate rental income from properties in Bulgaria is determined with regards to whether the tenant is physical person or legal entity. In the first case, the landlord with the company in the offshore zone is not exposed to 10% flat income tax. However, when the tenant is legal entity, according to the new amendments in the Law, the tenant should subtract the 10% tax from the rent and pay it directly to the state.

Road tax

The vignette tax remains unchanged. Depending on the period the cost is 10 BGN for 1 week, 25 BGN for 1 month and 67 BGN for the whole year for cars.

Written by Home Point BG