Bulgarian Local taxes and fees.
Local taxes and fees in Bulgaria
Real estate tax
Between 0.01% - 0.45% annually on the higher between the gross book value and the tax value of the immovable property. The exact rate is determined by the municipality in which the real estate is situated.
Garbage collection fee
Determined by each municipality. Generally levied on the gross book value of the real estate. Alternatively, it may be determined on the basis of the number and volume of waste containers used.
Transfer tax
Between 0.1% - 3% on the higher of the sales price or the tax value of the transferred real estate / on the insurance value of cars. The exact rate is determined by each municipality.
Vehicle tax
Depending on the type and characteristics of the vehicle. Applies to cars, ships and airplanes. The tax rate is determined by each municipality within ranges stipulated in the law.
Donation tax
Between 3.3% - 6.6% on the value of the donation. The exact rate is determined by each municipality. Lower rates and exemptions apply to donations between relatives.
Inheritance tax
Inheritance by a spouse, children and their descendants are exempt.
The tax is between 0.4% - 0.8% on inheritance exceeding BGN 250 thousand (approximately EUR 128 thousand) in favor of brothers, sisters and their descendants (between 3.3% - 6.6% for other heirs).
The exact rate is determined by each municipality.
Tourist tax
Between BGN 0.2 - 3 (approximately EUR 0.1 - 1.5) per night. The exact rate is determined by the municipality in which the accommodation facilities are located.
Tax on insurance premiums
2% tax is due on insurance premiums for insurance contracts covering risks on the territory of Bulgaria. The tax should be collected by insurers but it is intended to be a burden to the insured.
Certain insurance premiums are exempt from the tax (e.g., life insurance, permanent health insurance, etc.).
Taxable base
The taxable base is the insurance premium received by the insurer increased with any bonuses and discounts conditionally offered to the insured and later reimbursed to the insurer, and reduced with sums included in the insurance premium for statutory insurance guarantee funds.
In case the premium is payable in installments, the tax should be charged separately for each installment received.
Payment and reporting
The tax collected during the calendar month by the insurer has to be remitted to the state budget by the end of the following month. A tax return has to be filed for each calendar quarter by the end of the month following the quarter.
Excise duties
The Bulgarian excise duties legislation is based on the EU rules.
Scope
Excise duties are applicable for certain products including:
* Electricity and energy products (motor fuels, coal, etc.)
* Alcohol
* Tobacco products
Excise duty rates
The excise duty rate for electricity is BGN 2 (approximately EUR 1) per megawatt hour (BGN 0 for electricity sold to individuals for use in their homes).
The excise duty rates for the most common motor fuels are:
* Leaded gasoline – BGN 830 (approximately EUR 424) per 1,000 liters
* Unleaded gasoline – BGN 710 (approximately EUR 363) per 1,000 liters
* Gas oil and kerosene – BGN 615 (approximately EUR 314) per 1,000 liters
* Liquefied petroleum gas – BGN 340 (approximately EUR 174) per 1,000 kilograms
* Natural gas – BGN 0
* Biodiesel – BGN 0
* Heavy fuel oils for ships – BGN 600 (approximately EUR 307) per 1,000 kilograms
The excise duty rates for the most common heating fuels are:
* Gas oil and kerosene– BGN 50 (approximately EUR 25.6) per 1,000 liters (the rate applies only to marked gas oil and kerosene)
* Heavy fuel oils, heavy oils other than lubricants, tar, creosote oils – BGN 50 (approximately EUR 25.6) per 1,000 kilograms
* Liquefied petroleum gas – BGN 0
* Natural gas – BGN 0
* Biodiesel – BGN 0
* Coal and coke – BGN 0.60 (approximately EUR 0.30) per gigajoule
The following excise duty rates apply to alcohol:
* Beer – BGN 1.5 (approximately EUR 0.77) per hectoliter/degree Plato
* Ethyl alcohol – BGN 1,100 (approximately EUR 562) per hectoliter of pure alcohol measured at 20°C
* Intermediate products – BGN 90 (approximately EUR 46) per hectoliter of product
* Still and sparkling wines, and other still and sparkling fermented beverages – BGN 0
The following excise duty rates apply to:
* Cigars and cigarillos – BGN 270 (approximately EUR 138) per 1,000 items
* Smoking tobacco (for pipes and cigarettes) – BGN 130 (approximately EUR 66) per kilogram
The excise duty rate for cigarettes is determined as the sum of:
* A specific duty of BGN 101 (approximately EUR 51.5) per 1,000 cigarettes; and
* A proportional duty of BGN 23% of the sales price
The total excise duty should not be less than BGN 148 (approximately EUR 76) per 1,000 cigarettes.
Tax warehouses and deferred payment of excise duties
The production of excise goods should be carried only in tax warehouses (except for natural gas).
Excise goods may be imported, processed and stored in tax warehouses as well as transported under a deferred payment regime subject to specific eligibility and registration conditions.
Mandatory registration
The following entities are obliged to register for Bulgarian excise duty purposes:
* Entities which import coke or coal in Bulgaria from an EU Member State or a third country or which trade in coke or coal
* Entities licensed to:
- sell electricity or natural gas to customers for residential or commercial purposes
- produce electricity
- transit or distribute electricity or natural gas
- trade in electricity
- engage in public mandate supply of electricity or natural gas
- buy electricity or natural gas from end suppliers
which use own electricity or natural gas for their consumption
* Fiscal representatives of entities registered for VAT purposes in another EU Member State performing distance sales of excise goods to Bulgaria
Bulgaria applies directly the customs legislation and the Common Customs Tariff of the EU.
Customs duties on imports from non-EU countries are usually percentage rates calculated on the basis of the customs value (the transaction value increased by certain costs). Reduced or even zero duty rates apply on imports from countries granted preferential tariff treatment by the EU. In addition, the duties for certain imports can be suspended upon action of the businesses.
Goods can be imported in Bulgaria under customs procedures with economic impact – customs warehousing, inward processing, processing under customs control, temporary importation, outward processing.
As of 1 January 2008 businesses in Bulgaria can apply for AEO (approved economic operator) certification. Holders of AEO status enjoy preferential treatment with regard to customs controls and simplified procedures.