Tax on Onerous Acquisition of Property
The taxation regime for tax on onerous acquisition of property is regulated in Articles 44-51 of the Local Taxes and Fees Law.
Scope of taxation
Any onerously acquired corporeal immovables, limited rights in rem thereto, and motor vehicles shall be subject to tax.
Taxable persons shall be the transferees of properties.
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 transport vehicles: at the insured value;
Where property is onerously acquired, the tax shall be determined by the Municipal Council at a rate of 0.1 to 3 per cent of the assessed value of the transferred property.
The following shall be exempt from tax:
- the State and the municipalities;
- 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;
- the Bulgarian Red Cross;
- the nationally representative organizations of people with disabilities and for people with disabilities;
- any funds providing relief to victims of natural disasters and financing the conservation and restoration of historical and cultural landmarks;
- the medical-treatment facilities covered under Article 5(1) of the Medical Treatment Facilities Law;
- 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;
The tax shall be paid upon the transfer of the corporeal immovable, the limited rights in rem to a corporeal immovable and the motor vehicles.
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.
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.