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Advice On buying property in Bulgaria
Posted: Wed Aug 12, 2015 2:19 pm
Posted: Wed Aug 12, 2015 2:41 pm
Can you advise me on the tax for profit in selling property in Sofia ?
Posted: Wed Aug 12, 2015 2:55 pm
Surely that depends on residence and domicile ?
Posted: Wed Aug 12, 2015 3:01 pm
I am hoping to clear 20k profit on what i paid for the property as i bought it 15 years ago.
It is a 2 bed apartment fully furnished i just want to know what tax is payable as any agent i contact cannot give me straight answers
Posted: Wed Aug 12, 2015 7:33 pm
Posted: Wed Aug 12, 2015 8:10 pm
10% seems extortionate
Posted: Thu Aug 13, 2015 9:29 am
Mikesofia wrote:10% seems extortionate
I'm just finalising a deal on a property in Spain and the taxes there will be above 60%.
What tax you pay in BG will depend on a number of factors - for example if you bought 15 years ago you probably bought through a company to which you loaned the funds to buy, so you can offset the interest you will have had to pay yourself from any profits (but you did declare this on your annual return, right?). You may also be able to offset expenses you have incurred over the years. If I remember correctly if you keep a property fro 5 years or more you don't pay CGT - in any event, worth speaking to an accountant for the up to date story.
Posted: Thu Aug 13, 2015 11:31 am
Once you have owned the property for 3 years or more their is no profit tax. Less than 3 years it is 10% of 90% of the notarial sales value. (10% being allowed to cover you selling expenses. In you case you exceed the 3 year minimum so their is no profit tax to pay. Any lawyer or indeed a notary will confirm this.
Posted: Thu Aug 13, 2015 1:10 pm
Posted: Thu Aug 20, 2015 1:00 pm
hi I brought my property set up company 2006 I have been told what I payed for it in 2006 and what I sell for this year the difference in between is taxable is this correct or not thanks