I sold property in Bulgaria: do I owe personal income tax?

After selling Bulgarian property, a common question is whether “10% is due on the price”. For an ordinary sale by an individual, the answer does not depend only on the amount stated in the notarial deed. You first need to determine whether the income falls within a statutory exemption and, if not, how the taxable income is calculated.

First check whether the income is exempt

The National Revenue Agency describes the exemption in Article 13(1)(1) of the Personal Income Tax Act: income from selling one residential immovable property may be exempt where more than three years have elapsed between acquisition and sale. A separate rule covers up to two immovable properties, as well as agricultural and forest land regardless of number, where more than five years have elapsed.

Do not apply these periods mechanically. Identify the type of property, the date and basis of acquisition and any other relevant sales in the same tax year. Inheritance, gifts, exchanges and other acquisition methods can require separate analysis of the acquisition date and value.

If taxable, the tax is not calculated on the whole sale price

For sales or exchanges of immovable property, the NRA describes taxable income as the positive difference between the sale price and the acquisition price, reduced by 10% statutory expenses. The acquisition price itself depends on how the property was acquired, so a single formula cannot safely be applied to every case.

If there is no positive difference, or an exemption applies, the outcome changes. Systematic acquisition and resale conducted as a business may also fall outside the treatment of an isolated private disposal.

Do not confuse income tax with closing taxes and fees

Bulgarian local tax on onerous acquisition is connected with the transfer itself and has its own tax base and municipal rate. That is a separate issue from whether the seller earns taxable income under the Personal Income Tax Act.

Prepare the evidence before annual filing

Keep the sale deed, acquisition document, payment evidence and records showing how the property was acquired. If the sale is taxable, check the NRA's current annual-return requirements and the applicable deadline for the relevant tax period.

Where there are several transactions, inherited or gifted property, co-ownership or a company seller, do not rely on a generic calculator without reviewing the facts.