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 Law.

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:

  • corporeal immovables and limited rights in rem thereto: 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 Law;
  • the foreign currency and the precious metals: at the central exchange rate of the Bulgarian National Bank;
  • the securities: at fair market value;
  • the transport vehicles: at the insured value;

Tax Rates

Upon donation of property, as well as any properties 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 the children of siblings;
  • from 3.3 to 6.6 per cent: applicable to donations between any persons other than the persons referred to.

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 any specialized institutions for provision of social services and any medical and social child care homes;

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 Law.

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 the working capacity thereof and to socially disadvantaged individuals;
  • any donations for not-for-profit legal entities which receive subsidies from the central-government budget, and any not-for-profit legal entities, registered in the Central Register of Not-for-Profit Legal Entities designated for pursuit of public-benefit activities, in respect of any donations received and provided;
  • any customary gifts;
  • any donations in favour of community centres;
  • any assistance provided gratuitously under the terms and according to the procedure established by the Financial Support for Culture Law.

Declaring the tax

Upon gratuitous acquisition of property in cases other than the transfer of the corporeal immovable, the limited rights in rem to a corporeal immovable and the motor vehicles, the acquirers of property shall submit a return for taxation of the said property and shall pay the tax within two months after receipt.

No return shall be submitted for any properties acquired by donation between lineal relatives and between spouses.

Tax Remittance

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

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 Law, any delinquent taxes shall be collected with interest under the Interest on Taxes, Fees and Other Such State Receivables Law.

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