Company Accounts & Personal Tax Returns

Foreign owners of property who bought land, villas or investment apartments before 2010 often own 100% of the shares of a Bulgarian Limited company, which in turn owns the property. This limited company must by law submit annual accounts (for 1st Jan – 31st Dec) every year by the 31st March of the following year. Even if the company has not traded and has not made a single transaction the accounts must still be submitted to the authorities. 

Failure to submit accounts by the 31st March now results in fines ranging from 250 – 1500 Euros depending on the length of the delay. If you are late in submission it is best to instruct a consultancy to deal with the issue ASAP as it will simply cost more if left unresolved.

We can prepare and submit your company's annual accounts for £150 including filing fees.

If you are concerned that your company has failed to make annual returns on time or has missed previous years, please feel free to contact us to discuss. We will gladly check the national public registry and confirm the status of your company, if required we will advise what exactly needs to be done to bring it back to good standing. 

Personal Tax on Rental Income: Individuals generating rental income from a privately owned property

If you are generating rental income from a perosnally owned property in Bulgaria, taxes are due and payable to the Bulgarian state. This applies equally to a property you are renting to a fulltime residential tenant on a 12 month contract, or if you are renting seasonally to holidaymakers night by night.

All income generated and paid within the territory of Bulgaria, received in cash or paid into a bank account, is taxed at 10%.

There are no deductions to this, for wear and tear or alike. Some countries, such as the UK, have a dual taxation treaty with Bulgaria that allows UK tax payers rights to potentially offset taxes already paid in Bulgaria against their personal income or make further deductions according to local taxation laws.

We can assist with the correct filing of personal tax returns with the Bulgarian National Revenue Agency only, we are not able to advise on any taxation matters relating to your home country. The Bulgarian tax year runs from 1^st January to 31^st December, during which 4x tax submissions are required by the 15^th of the month after each quarter. A 5^th and final annual summary is required by 30^th March each year for the previous year.

Owners are required to sign 1x Power of Attorney to appoint an accountant (New Estate), the annual service for all 5x submission is available from New Estate for 200 Euros.

For further information on personal tax deductions and intercountry reporting of income, please read this article.

Corporate Accounts: Trading Companies

If you have multiple investments in Bulgaria which perhaps are being let out in return for rental income, we can assist with the accountancy of such structures and streamline your returns to be more tax efficient. It is possible to register your firm for VAT and claim back VAT amounts, this is especially true when the purchase is not concluded and perhaps is still in an off plan stage. These funds can then be reinvested into additional properties, expand the portfolio and bring in further income. Naturally, as a commercial enterprise the VAT can be legitimately claimed back from these purchases too.

Every corporate structure is different, please contact us to discuss your situation.