What Are the Capital Gains Taxes When Selling Real Estate in Bulgaria?

I am a non-resident EU citizen considering selling an apartment I bought in Sofia a few years ago. I am confused about how Bulgaria taxes capital gains from real estate sales and whether there are any exemptions if I owned it for a certain period. Could someone clarify the exact tax rate and if I also need to pay anything in my home country? Any advice from expats who have gone through this process would be greatly appreciated.

As a non-resident EU citizen, you will generally be subject to a 10% flat capital gains tax on the profit made from selling the apartment in Sofia. The profit is calculated as the selling price minus the original purchase price and any documented improvement expenses.

You should definitely look into the holding period exemption. In Bulgaria, if you have owned the residential property for more than 3 years, the capital gains tax is 0% regardless of your residency status! If it's been less than 3 years, that 10% rate applies.

Before making any moves, I recommend reading this insightful analysis on the Bulgarian Property Market Forecast to see if timing your sale right now makes financial sense.

Don't forget about your home country's tax obligations. Since you are an EU citizen, most home countries have double taxation treaties with Bulgaria, meaning you might need to declare the sale there, but you usually won't be taxed twice on the same gain.

When I sold my flat in Sofia last year, the notary actually helped calculate the tax liability during the transaction. Make sure you keep all original purchase documents and receipts for any renovations to lower your taxable profit.

If you're thinking about reinvesting your capital into another coastal property elsewhere in the country, you might want to check out this guide on Cost of Living vs Cost of Housing in Varna and Burgas.

Just a quick warning: the tax office in Bulgaria (NAP) takes the 3-year holding rule very strictly. Count the exact dates from the day the Notarial Deed was issued in your name to the day of the final sale contract.

Getting a local accountant in Sofia to handle the declaration is totally worth the small fee. They ensure the capital gains tax return is filed correctly within the statutory deadlines so you avoid any nasty fines.