Am I eligible for concessions when buying a new property in Bulgaria?

When buying a new property in Bulgaria, certain tax breaks and incentives may apply, although these are limited and depend on specific circumstances. Here are some aspects to consider when it comes to potential tax breaks when buying property in Bulgaria:

Reliefs for individuals

  • Currently, Bulgaria does not offer specific tax breaks on the purchase of a new property for individuals. However, it is worth checking local regulations, as they can vary from region to region and municipality to municipality.

Reliefs for foreign investors

  • Tax breaks for investments: Large investments in certain regions may be eligible for tax credits or exemptions from certain taxes.
  • Incentives for construction companies: Construction companies and developers can take advantage of tax breaks for infrastructure investments or other real estate development projects.

VAT

  • The purchase of a new property from a developer is usually subject to 20% VAT. In some cases, developers may offer promotions where they cover the cost of VAT, effectively lowering the cost of the purchase for the buyer.
  • The purchase of a used property from an individual is not subject to VAT.

Capital gains tax

  • If you are selling a property and plan to invest the funds in the purchase of a new property, capital gains tax credits may apply, as long as certain conditions for reinvestment are met.

Discounts for energy-efficient properties

  • Some municipalities may offer rebates or subsidies for investments in energy-efficient or green properties, although such programs are less common.