The due tax on sale of property depends on different factors. It is taken into account when the property is acquired and on what grounds (a sale, a donation etc.). The tax amount depends on the type of the property (apartment, land), if the person has sold other properties during the year, etc.
The tax is due only on the difference, which is a result between the price of acquisition and the sale price. This difference has to be decreased with 10% normatively recognized costs and the remainder is taxed with 10%.
In this case the acquisition cost will be a tax evaluation.
For example: Tax evaluation of the property – 1000 BGN, sale price – 1500 BGN. The difference in this case is 500 BGN. It is reduced with 10% and becomes 450 BGN and this is the taxable base
In a case when you don`t use a specific tax reliefs, the due tax is at the amount of 45 BGN. This income should be declared with an annual declaration, which should be submitted by the end of April for incomes, received within the previous year.
No tax is due, when the income is from a sale or exchange of a real estate, if between the date of acquisition and the sale or exchange date there have been more than three years.
Exempt from taxation are the incomes, received from sales or exchange of up to two properties as well as agricultural and forest properties, regardless of their number. The requirement is that between the date of acquisition and the sale or exchange date there have been more than five years.
In case of renting a property the lessee owes a tax, which should be deposited in advance, only in case when:
– The lessor is an individual and the lessee is a firm or a self-employed person (a lawyer, a doctor etc.) and the premises are used from the self-employed person for his business activity. In a case, when the lessor and the lessee are individuals or firms, the lessee doesn`t owe and doesn`t deposit a tax.
– In a case, when there is a tax due, the lessee should present to the lessor an official notice (a certificate form) and certificate for paid amounts. These templates can be found on the web page of the National Revenue Agency and they should present the paid amounts for rent and the withheld amounts for tax as well as the already paid tax (if it is paid).
The taxable and responsible person for this operation is the lessee. If he/she has deducted the tax amount from the due rent, but he hasn’t deposited it to the National Revenue Agency, the sanctions are for him. In addition, he/she is obliged to add by one copy of these certificates for paid amounts to his tax declaration. They have to be drawn in three copies– one for every party and one for the National Revenue Agency and they should be signed from the lessee and the lessor.
For year 2013 there are some changes – the advance tax payment has to be deposited every three months and the official certificates will be issued once a year for the whole amount.