Inheritance Tax

Municipalities across Bulgaria have initiated increases in local taxes and fees, with several municipal councils incorporating changes to the Ordinance on determining the amount of local taxes into their meeting agendas. Dobrich's municipal councilors were the first to act, approving hikes in property and car taxes, as well as fees for taxi transport licenses within the municipality.

Sofia residents who have dutifully paid their local taxes for the year 2024 have collectively pocketed a substantial sum, saving a remarkable BGN 4,678 million by April 14. This significant boon in savings comes as a result of timely payments, demonstrating a responsible approach to civic obligations.

The major increase in property transfers recorded in 2022 continued in 2023 too, following years of stagnation due to the pandemic and the energy crisis.

According to data from the Independent Authority for Public Revenue, transfers posted a new record last year, mainly thanks to the major interest by foreign investors.

The process of transferring real estate is being gradually simplified with the abolition of certificates and the gradual activation of the electronic system implemented by the Ministry of Digital Governance.

The tax administration has just abolished the certificate on nonpayment of inheritance tax on real estate purchases.

The British island, located off the coast of France, has no capital gains or inheritance tax

In its review of objective values - property rates used for tax purposes - the Finance Ministry is aiming to include real estate valued at an estimated 80-100 billion euros and at least 7,000 new areas in the system.

The exhaustion of Greeks' taxpaying capacity and the difficulties in meeting day-to-day expenses are leading to more and more citizens waiving inheritances, especially when they concern real estate assets.

The Finance Ministry is planning to allow the concession of properties to the state for the payment of inheritance tax - unless this tax exceeds the objective value of the property - and other obligations to the state, while it appears the government will have to postpone the return of the capital gains tax on properties for another year.

A ministerial decision allowing citizens unable to accept an inheritance for tax reasons to cede property instead of paying inheritance taxes was expected to be announced in the near future, the ANA-MPA news agency reported on Thursday.

The Finance Ministry is planning a new real estate tax scheme aimed at replacing the controversial single property tax ENFIA that had been introduced by the previous government. Ethnos daily newspaper states that the new tax system will have a low tax limit for property under 50,000 euros and will rise according to the price of the property and family situation of the owner.