Buying property in Bulgaria: in your name or a company's
There is no single right answer: buying in your own name, through a Bulgarian company you set up, or directly with an existing company in Turkey changes the tax, the annual burden and the exit route in different ways. Here we only put side by side what we saw on National Revenue Agency and Ministry of Economy pages; we do not say which structure is cheaper, because that depends on the purpose and on personal circumstances.
Real estate · Last reviewed: 2026-10-07
This is not legal or financial advice
Three routes, a rough comparison
| Individual | Bulgarian company (ЕООД) | A company in Turkey directly | |
|---|---|---|---|
| Registered owner | The person | The company (a separate legal entity) | The foreign company |
| Tax on rental income | Declared in the annual return; the НАП home page gives tax of 10% and recognised expenses of 10% | Rent is part of the company's profit; profit is taxed at 10% corporate tax | On the НАП withholding-tax page, rent from Bulgarian real estate is taxed at source at 10% if there is no place of business |
| Gain on sale | Not verified on this page | Part of the company's profit | On the same page the base is the positive difference between the sale price and the documented purchase price; rate 10% |
| Annual burden | An annual income return if there is rent | Annual corporate-tax return, annual activity report, accounting | Quarterly withholding-tax return and payment |
| When profit reaches the owner | Directly yours | A further tax on distribution; the rate depends on who the owner is | Not separately verified on this page |
| Exit | You sell the home | You sell the home or transfer the company; closing a company needs a long liquidation | You sell the home |
What drives the burden on the company route
According to the НАП corporate-tax page, a Bulgarian company pays 10% on its profit; the annual return is filed electronically with a КЕП between 1 March and 30 June, and the annual activity report goes in with it. Not filing, or filing late, carries an administrative fine. The Ministry of Economy's SME handbook also notes that closing an ЕООД or ООД needs a long and complicated liquidation. So forming a company means taking on an annual operating burden, not just buying a home once.
A separate tax can arise when profit is distributed to the owner. The НАП withholding-tax page gives 5% for dividends and liquidation shares, but that page describes certain recipient groups (foreign legal entities, local legal entities that are not traders) and exempts legal entities that are tax residents of an EU or EEA state. The position of an individual owner is not on that page; see our dividend-tax article and ask your accountant.
What stays the same on every route
- Acquisition tax and registration costs: according to the НАП local-taxes page, acquisition for consideration is the subject of a local tax set by the municipal council; whoever the buyer is, a notarial deed and a register entry are needed. The items are in our article on extra costs when buying a home.
- Property tax and refuse fee: paid to the municipality where the property is, whoever the owner; the НАП page says the rates of local taxes are set by the municipal council.
- Land and agricultural land: separate rules apply depending on the buyer's status; for anything other than a home see our article on whether foreigners can buy land.
Questions to ask before deciding
How will you use the home
If you will live in it, the annual burden of a company rarely pays off (our assumption). If you will rent it out or plan to sell, the tax difference needs an accountant's calculation.Do you have other activity in Bulgaria
If you already have a Bulgarian company, whether to buy the property into it is considered together with that company's purpose and accounts.Think about the exit from the start
Who pays tax on a sale, and whether you will transfer company shares or sell the property, differs by structure. Remember that liquidation is long.Decide with an accountant and a lawyer together
Let the accountant work out the tax and the lawyer the purchase contract and the register entry; do not separate the two.
This page is not legal or financial advice
Frequently asked questions
Does buying through a company reduce tax?
We cannot give a general answer. НАП pages show 10% tax with 10% recognised expenses on an individual's rental income and 10% corporate tax on a company's profit, but the company's annual burden and the possible extra tax on distribution change the sum. An accountant should work it out with real figures.
What if my company in Turkey buys directly?
According to the НАП withholding-tax page, a foreign legal entity without a place of business can be taxed at source at 10% on rent and on the gain from Bulgarian real estate. Check the details and the Turkey–Bulgaria double-tax treaty with your accountant.
Does it make sense to form a company just to buy a home?
Often it is a heavy route (our assumption), because it brings an annual return, accounting and, later, a liquidation. If you plan to rent out or to hold several properties, the sum may come out differently.
Sources
The information on this page is based on the official sources listed below. Legislation changes — open the links and verify the current position.
- Национална агенция за приходите — начална страница (доходи от наем: данък и признати разходи) — https://nra.bg/ · 2026-10-07
- Национална агенция за приходите — Корпоративен данък — https://nra.bg/wps/portal/nra/taxes/korporativen-danak · 2026-10-07
- Национална агенция за приходите — Данък при източника — https://nra.bg/wps/portal/nra/taxes/danak-pri-iztochnika · 2026-10-07
- Национална агенция за приходите — Местни данъци и такси — https://nra.bg/wps/portal/nra/taxes/mestni-danatsi-i-taksi · 2026-10-07
- Министерство на икономиката — Business handbook for SME: избор на правна форма, документи и процедура (англ.) — https://www.mi.government.bg/en/business-handbook-for-sme/choice-of-legal-form-registration-documents-and-procedure/ · 2026-10-07
Related topics
Can foreigners buy land in Bulgaria?
Why buildings and land are treated differently, how EU and non-EU buyers stand, the separate agricultural land regime, and buying through a company.
Extra costs when buying property in Bulgaria
What is added to the purchase price: acquisition tax, notary fee, registration fee, cadastre documents, agency and lawyer — and which of these is negotiable.
Tax on rental income in Bulgaria
How rent is taxed, when the tenant withholds at source, the annual declaration duty, and why short-term letting is treated as a different activity.
What is an EOOD? Bulgaria's single-owner company
An EOOD is a Bulgarian limited liability company owned by one person. How ownership, management, liability and social security actually separate.
Is an accountant mandatory for a Bulgarian company?
The law does not say „hire an accountant“. It says the financial statements must be compiled by someone with defined education and experience — which makes one unavoidable in practice.
Dividend tax in Bulgaria: 5%
Distributed profit in Bulgaria carries a 5% withholding tax. Who is exempt from withholding, when the tax falls due, and what the real combined burden is.