Tax when selling property in Bulgaria
Whether tax arises when you sell real estate in Bulgaria depends on how long you have held it. The Personal Income Tax Act (Закон за данъците върху доходите на физическите лица, ЗДДФЛ) exempts the proceeds of some sales; for a non-exempt sale, tax is computed on the difference between the purchase and sale prices.
Real estate · Last reviewed: 2026-10-08
This is not legal or financial advice
Which sales are exempt
Under ZDDFL Art. 13(1) item 1, the following income obtained in the tax year is not taxable:
- the sale or exchange of one residential property, if more than three years passed between acquisition and sale;
- the sale or exchange of up to two real properties, and of agricultural and forest properties irrespective of number, if more than five years passed between acquisition and sale.
How tax is computed if not exempt
Gain
Under ZDDFL Art. 33(1), the taxable income from a real-estate sale is the positive difference between the sale price and the acquisition price.Cost deduction
That difference is reduced by 10% for expenses.Rate
In general 10% income tax applies to the annual base (Art. 48(1)). A separate 15% rate applies to those earning business income as a sole trader (едноличен търговец, ЕТ) (Art. 48(2)); if you sell your own flat privately, this rate is usually not at issue, but it may be if the property is a business asset.
What we read and what we did not
The above comes from opening and reading the articles in the current ZDDFL text on lex.bg on 8 October 2026. The deadline for the annual return, withholding for foreign (non-resident) sellers and other local levies are not covered here; for the property transfer and notary costs, see the related articles.
This page is not legal or tax advice
Frequently asked questions
Do I pay tax if I sell my home in Bulgaria?
It depends. Under ZDDFL, if you held one residential property for more than three years the proceeds are not taxed; otherwise the gain, after a 10% cost deduction, is taxed at the general 10% rate.
Is the period different for land and agricultural land?
Under Art. 13, the period is five years for sales of up to two properties and for agricultural and forest land.
How is the tax computed?
The difference between sale and acquisition price is reduced by 10% for expenses and 10% tax is applied to the remainder.
Sources
The information on this page is based on the official sources listed below. Legislation changes — open the links and verify the current position.
- Закон за данъците върху доходите на физическите лица (ЗДДФЛ) — чл. 13, чл. 33, чл. 48 (lex.bg) — https://lex.bg/laws/ldoc/2135538631 · 2026-10-08
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