Britons living in Bulgaria. Guide to Bulgaria, Sofia and Varna

Cyprus Property - Paphos Villas, Limassol Villas, Protaras Villas ...


A long term stay permit is valid for 1 year and is re-issued every year. A Municipal Tax at a rate of 10% of profits is due. According to the constitution and legislation foreign persons and companies can invest in real estate in Bulgaria either personally or through a local legal entity. After 5 years under long-term permit one can apply for a permanent residence. Also, they can establish a joint-venture with existing local company, a new venture, to acquire a company through privatisation or to make a portfolio investment. As such, it is non-depreciable and is subject to annual revaluation to the market value. Checks and credit cards are used mainly by foreigners. Depreciation for tax purposes is at a rate of 4% per annum, and is usually calculated using the straight-line method. Development of services for consumers, such as debit cards, started within the last couple of years, while personal checks are almost unknown and unused as a method of payment. During that time you are issued a Bulgarian Identity Card. If the activities of a foreign person owning real property in Bulgaria do not constitute a permanent establishment, the person will be liable for only 15% withholding tax on the rentals and capital gains, unless an even lower rate is applied under a double tax treaty. In addition to the real property tax, owners also pay waste-collection fees. In addition, 2% of the market value of the property is paid to the municipality in which the real property is situated. In practice, it is often unclear in which situations a property should be treated as an "investment property" rather than as a fixed asset. In the case of a direct investment, the tax treatment of the foreign investors depends on whether or not their activities constitute a permanent establishment. Losses cannot be offset against profits from previous years. More information about D Type visa for British citizens can be obtained at www.bulgarianembassy.org.ukA proof of national insurance or social security in the country of residence (such document can be issued from your local national insurance office).Minimum 3 000 BGN (approx. Note that foreigners, as persons, can buy buildings but can't buy land. Obtaining a Bulgarian residency you will be able to buy land and other properties without any limitations and you will be able to enter and leave the country as many times you like without needing a visa. Of course there are and some restrictions like: is forbidden agricultural land to be sold to foreigners, also if the land is in restricted area a government permission might be required. Only Bulgarian citizens and legal entities (including such with foreign owner) can obtain ownership on land. Payment by debit cards is accepted in some of the retail chain of shops and gas stations and is gaining popularity. Real estate acquired for purpose of re-selling it is considered as "investment property". Such expenses include repairs, maintenance, renovation and similar costs and interest on loans used for the acquisition of the property. The BNB regulates the banking system, but, under the Currency Board Arrangement, has no discretion in setting monetary or exchange rate policy. The buyer/lessee is entitled to a VAT refund, provided that it is registered for VAT purposes. The company doesn't need to operate but it is simply a tool to purchase the property with the land. The company should be registered with the court, the tax authorities, the statistics and with the Social Security Institute. The notary fees are paid on the higher of the market price or the book value of the property at varying rates, with the maximum being BGN 3, 500. The tax is equal to 0.15% of the book value of the property. The transfer is, however, subject to notary and municipal fees. The various tax treaties entered into by Bulgaria usually contain a narrower definition of permanent establishment. There are no legal restrictions on the size of the property. This is then deductible in calculating taxable profits which are subject to a flat corporate tax rate of 25%. Where a building is built on a State or municipal plot, the value of the plot will also be included in the tax base. You can apply for it in any Bulgarian embassy. You have to register a LLC which takes between 2 and 4 weeks.