Tax on Properties Acquired by Donation

The taxation regime for properties acquired by donation is regulated in Articles 44-51 of the Local Taxes and Fees Act.

Scope of taxation

Properties acquired by donation shall be subject to tax.

Non-taxable persons

No tax shall be levied on any properties acquired by donation between lineal relatives and between spouses.

Taxable Persons

Taxable persons shall be the transferees of properties.

Taxable Amount

The base for assessment of the tax shall be the assessed value of the property in lev terms at the time of the transfer. The property shall be valued as follows:

  • immovable property and limited rights in rem thereto acquired by prescription is assessed at the price agreed or at a price as set by a state or municipal authority or, should the said price be lower than the assessed value, at the assessed value arrived at according to an annex to the Act;
  • foreign currency and the precious metals: at the central exchange rate of the Bulgarian National Bank;
  • securities: at market value;
  • other movable property and rights – at market value

Tax Rates

Upon donation of property, as well as any property acquired gratuitously in any manner other than by donation, tax shall be charged on the assessed value of the transferred property in an amount determined by the Municipal Council by an ordinance as follows:

  • from 0.4 to 0.8 per cent: applicable to donations between siblings and their children;
  • from 3.3 to 6.6 per cent: applicable to donations between any persons other than the persons referred to in the point above.

Tax Exemption

The following shall be exempt from tax:

  • any properties acquired by:
  1. the State and the municipalities;
  2. any public-financed educational, cultural and scientific research organizations, as well as social and integrated health and social services for residential care;
  3. the Bulgarian Red Cross;
  4. the nationally representative organizations of people with disabilities and for people with disabilities;
  5. any funds providing relief to victims of natural disasters and financing the conservation and restoration of historical and cultural landmarks;
  6. the medical-treatment facilities covered under Article 5(1) of the Medical Treatment Facilities Act.
  7. the places of worship and the monasteries intended for religious practice, together with the lots whereon they have been constructed, where owned by the lawfully registered religious denominations in Bulgaria, as well as the prayer houses together with the lots whereon they have been constructed, where owned by the lawfully registered religious denominations in Bulgaria;
  • any donations for medical treatment of citizens of a Member State of the European Union or of another State which is a Contracting Party to the Agreement on the European Economic Area, as well as of technical aids for people with disabilities;
  • any humanitarian donations to persons who have lost between 50 and 100 per cent of their working capacity and to socially disadvantaged individuals;
  • any donations for non-profit legal entities which receive subsidies from the state budget;
  • donations for non-profit legal entities working for the benefit of the public, in respect of any donations received and provided;
  • any customary gifts;
  • any property transferred gratuitously in fulfillment of an obligation arising by law;
  • any donations in favor of chitalishte community centers;
  • any assistance provided gratuitously under the terms and according to the procedure established by the Financial Support for Culture Act.

Any property received under Art. 48 (1) of the Local Taxes and Fees Act, as well as any subsequent transfer to third parties, shall be exempt from tax subject to the condition that the transfer is connected to the attainment of the immediate objectives of the respective organization under Art. 48 (1), or where the said objectives have been cited as grounds for exemption from tax. Upon non-fulfillment of the conditions for exemption, the uncollected tax shall become due.


Tax Declaring

The persons who have received any gratuitously acquired property, with the exception of cases of transfer of immovable property, limited rights in rem over immovable property and transport vehicles, shall file a tax return within two months after receiving it.

No tax return shall be filed:

  • for any property acquired by donation between lineal relatives and between spouses;
  • for any property transferred gratuitously when the transfer has been made in order to fulfil an obligation imposed by law or in pursuance of an act of the Council of Ministers on gratuitous allocation of property to investors under priority investment projects;
  • for the acquisition of customary gifts;
  • for property acquired according to the procedure established by the Privatization and Post-privatization Control Act and for any non-monetary contributions to the capital of a company, cooperative or non-profit legal entity;
  • for any donations received and provided to non-profit legal entities registered in the Central Register of non-profit legal persons conducting activity to the public benefit.

Tax Remittance

The tax shall be paid at the municipality exercising competence over the situs of the corporeal immovable property, and in the remaining cases, the permanent address or the registered office of the taxable person.

Tax Administering

Municipal administration officers shall be responsible for the assessment and the collection of the tax on the acquisition of properties by donation under the procedure of the Tax and Social Insurance Procedural Code.


In accordance with the provisions of Article 4 (2) of the Local Taxes and Fees Act, any delinquent taxes shall be collected with interest under the Interest on Taxes, Fees and Other Such State Receivables Act.

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