A very relevant question. What all the same tax must be paid by the Seller by selling his property in Bulgaria. It does not matter what type of property was sold - an apartment, house, land or commercial property.
1. Owners who sell one piece of real estate per year, but on condition that they have owned it for at least three years, are exempt from paying income tax.
2. Owners who sell two objects a year are exempted from paying income tax, but on condition that they have owned them for at least five years.
3. Owners are exempted from paying tax on profits, who sell the property they received in ownership by will or by inheritance.
Owners who own real estate through a Gift Agreement, selling a property at a profit, are not exempt from paying tax if they have owned it for less than three years.
Here are some examples:
1. You bought an apartment for 50,000 euros, after a year or two, you sold the apartment for 55,000 euros. The profit is 5000 euros. The amount of 10% or 500 euros for expenses is deducted from the profit, and the remaining part of the profit in the amount of 4500 euros is taxed at 10%. It is from this amount of 4500 euros that a 10% tax is paid, which is 450 euros. This profit is taxable as the ownership of the property was less than 3 years old.
2. You bought an apartment for 50,000 euros, after three years and one day, you sold an apartment for 55,000 euros, the profit is 5,000 euros. But you do not pay income tax, so you have owned real estate for more than three years.
3. You bought an apartment for 50,000 euros, after a year, two, three, you sold the apartment for the same price of 50,000 euros. There is no profit. The tax is not paid. In this case, there are no restrictions on the duration of ownership of real estate. Without profit, it is possible to sell several objects a year.