For sellers

Capital Gains - Will I get Charged?

Capital Gains explained:

Some buyers are concerned with lower tax estimated prices and its impact on Capital Gains tax implications over the coming years and particularly when they come to resell. Whilst we aren’t qualified to advise you on tax issues we can quote below relating to foreign buyers:

• Capital Gains Tax: The new Personal Income Taxes Act has been promulgated and entered into force as of 1st January 2007 and the situation with regards to capital gains tax is clearer now. In principle for foreign persons (who do not reside in BG more than 183 days within one year) it is 10 % of the profit (the balance between the declared purchase price and the declared sale price minus 10 % recognised by the law as expenses that reduce the taxable profit) but there will be no capital gains tax, if the following conditions are met

• During the calendar year the person has sold only one real estate in Bulgaria (i.e. for more than one property there will be capital gains tax)

• During the calendar year the person has sold up to 2 real estates but more than 5 years have passed since the person has acquired the estates in question

• For tax purpose the person is considered resident of a member state of EU or another state from the European Economic Area, i.e. the tax relief is only for European citizen