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Capital gains tax on property sales in Bulgaria. When are you exempt?

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Leo_123
Joined:
10.03.2020
Posts: 1587
Topic Starter
11.01.2025 14:11
Hi everyone, I'm trying to figure out the tax rules for selling a property in Bulgaria and could use some clarity. I know there are certain conditions where you don't have to pay capital gains tax, like if you've owned the property for a specific number of years or if it's your primary residence. However, the official documentation is a bit confusing to me as a foreigner. Does anyone know the exact holding period required for an exemption, or if there are exceptions for inherited real estate? Any advice or personal experience with this would be really appreciated.
14 replies in this topic
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Hannah_B
Joined:
02.01.2023
Posts: 404
12.01.2025 23:14
As far as I know, you are completely exempt from capital gains tax in Bulgaria if you have owned the property for more than 3 years.
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Hannah_B
Joined:
12.08.2020
Posts: 151
24.01.2025 10:56
In reply to a previous post
That's correct @user1, but it only applies if it was registered as your primary residence or if you are selling a certain number of properties within a timeframe.
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robert_d
Joined:
04.04.2024
Posts: 611
26.01.2025 09:05
In reply to a previous post
Actually, the three-year rule applies to residential property generally, not just primary residences. Commercial property has different rules though.
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forum_expert
Joined:
29.09.2022
Posts: 51
02.02.2025 19:33
What about inherited property? Does the 3-year clock reset, or does it count from when the deceased owned it?
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Oli_L
Joined:
09.04.2020
Posts: 414
13.05.2025 20:13
In reply to a previous post
For inherited real estate, you don't pay capital gains tax regardless of the holding period if the property was acquired by inheritance or legal succession! That's a huge perk in Bulgaria.
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Vic_S
Joined:
30.04.2024
Posts: 1188
08.09.2025 09:33
In reply to a previous post
Wait, really? Even if you sell it the next day after inheriting it?
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Iggy_R
Joined:
03.06.2022
Posts: 1789
12.10.2025 18:11
In reply to a previous post
Yes, @user5, inherited properties are exempt from income tax on sales. My family went through this last year and we didn't pay a lev.
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advice_pro
Joined:
05.10.2024
Posts: 1114
15.10.2025 10:57
Thanks for the info everyone, this is super helpful. Navigating Bulgarian bureaucracy as a foreigner is a nightmare.
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robert_d
Joined:
27.08.2024
Posts: 135
06.11.2025 19:34
In reply to a previous post
Just make sure you get a good local notary and lawyer. They handle most of the tax declarations during the final signing anyway.
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Selector
Joined:
09.09.2023
Posts: 140
23.11.2025 10:12
Also keep in mind that if you don't meet the 3-year exemption, the tax rate is actually quite flat and low compared to the rest of EU-only 10% on the net profit.
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new_here
Joined:
13.08.2025
Posts: 1483
12.12.2025 07:36
In reply to a previous post
10% is correct, but remember you can deduct expenses like improvements and agent fees to lower the taxable base.
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MrNobody
Joined:
25.01.2024
Posts: 1138
14.12.2025 21:59
Do they check if you actually lived in the property for those 3 years, or is it purely based on the title deed date?
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old_wolf
Joined:
23.01.2024
Posts: 803
10.02.2026 01:41
In reply to a previous post
It's purely based on the date on the title deed (Notary Act). They don't check utility bills or residency registration for the 3-year rule.
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Hub_K
Joined:
06.09.2023
Posts: 2278
12.02.2026 10:48
In reply to a previous post
Good to know! Bulgaria is definitely one of the more tax-friendly countries in Europe for property investors.

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