Taxes and fees in Bulgaria

1. Setting up a company

According to the Commercial Law foreigner citizens can form Limited Liabilities Company (LTD) by its two variants -EOOD - where the founder is one or OOD, where the founder is more then one person. These could be only foreigners or foreigners and Bulgarian citizens.

The person/persons will be liable for the company's obligations to the value of his/hers share in the company's registered capital. The shareholders conduct preliminary discussion on the commercial activities they intend to engage in. Based on their agreement, Articles of Incorporation are prepared and sighed by all shareholders. A dedicated bank account is opened to collect all share capital. The minimum share capital required is 5000 BGN (2500€). Shareholders at the time of the registration must have paid at least 1/3 of their respective shares. It is required that at least 70 % (3500) of the capital is raised at time of registration.

If you have any questions please do not hesitate to contact us: Real-Estate.1001Line.com. The company exists from the moment it is added to the Commercial Register of the district of where the company will be based. The entry is made upon issue of a district court decision for the incorporation. The following documents must be available at the time of the submission of registration application to the district court.

Articles of incorporation
Memorandum for appointment of Director/Directors
Proof that at least 70 percent of the registered capital has been paid

Publication of the company entry in the Commercial Register does not complete the company formation, it announces to the general public the act of formation. The process of forming a company can take anywhere between a few days to 2 weeks.

Finally your new company (OOD or EOOD) will need to register immediately with the National Tax Register. Once the entire authorized /share/ capital has been paid up these funds can be accessed and withdrawn

The costs are :

For all fees and honorary of the lawyer who is leading the procedure – approximately 2000 BGN (1000 €)
Authorized capital that is to be deposit with bank account -5000 BGN (2500 €), which can be withdrawn later.

2. Costs For Buying Property

(a) State Fees

entering fee - 0.1 % from the value of the property
local fee - 2% from the value of the property
notary tax – it is calculated under a determined scale and is paid as percent from the value of the property

For example if the value is 20000 BGN, the total value of the due state fees is 588 BGN

(b) Lawyer's honorarium – between 100- 200 BGN depends on the deal
(c) Commission for the agency– estate agent - 3% from the market price of the property, when the Agency headquarters are in the big cities and the Black Sea.

3. Local Taxes and Rates (after buying a property)

An owner of a building or a plot is obliged to pay an annual real property tax and waste-collecting fees. These are different in value and depend on the size of populated area and its situation in the country, the neighborhood, the sq. footage and the floor, the year and the type of the construction, extras in the interiors etc.

For example : for a solid house, 100 sq.m area in the Super Center Zone in Plovdiv the annual real property tax is around 50 BGN and the waste collection fee is 60 BGN. For a flat in a quarter in Plovdiv with 40 sq. m floorage they are 25 in total. In a small town (like Sopot town) for a house, 65 sq. m the property tax plus waste-collection fee is 18 BGN . For a house with yard in a village the total payment would be 5-6 BGN per year.

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