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 Act.

Scope of taxation                 

Any onerously acquired immovable properties, limited rights in rem thereto, and motor vehicles shall be subject to tax.  

Taxable Persons

Taxable persons shall be the transferees receiving the 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 properties and limited rights in rem thereto: at the price agreed upon 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;

Tax Rates

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.

Tax Exemption

The following shall be exempt from tax:

  • the State and the municipalities;
  • any publicly funded educational, cultural and scientific research organizations, as well as social and integrated health and social services for residential care;
  • 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;

Tax Remittance

The tax shall be paid upon the transfer of the immovable property, the limited rights in rem to an immovable property and the motor vehicle.

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

Tax Administering

Municipal administration officers shall be responsible for the assessment and the collection of the tax on the onerous acquisition of property 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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