How capital gains tax works in Bulgaria
Bulgaria does not use a separate capital gains tax regime for individuals. Instead, capital gains are generally taxed under the flat 10% personal income tax rules, with non-residents taxed only on Bulgarian-source gains.
Real estate gains are taxed on the positive difference between sale price and acquisition price, less the statutory deduction where applicable. Sales of one residential property per year held for more than three years, and up to two other properties held for more than five years, can be exempt.
Some securities gains are exempt, especially qualifying sales of listed shares and tradable rights on regulated markets in the EU or EEA, and certain equivalent or SME growth markets. The annual tax return is usually due by 30 April.
Tax rates at a glance
- Capital gains tax
- 10%Flat
- Listed securities
- 0%
- Residential property
- 10%
- Non-resident WHT
- 10%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
InvestorsShareholdersProperty ownersExpatsTraders
Watch out for
- The key issue is often the exemption, not the headline rate. Qualifying listed-share and residential-property rules can change the result materially.
- Keep acquisition-cost records, especially for shares, funds and real estate, because the tax base depends on the gain after cost.
- If you are tax resident outside Bulgaria, your home country may still tax the same gain even if Bulgaria does not.
Frequently asked questions
Does Bulgaria tax capital gains?
Yes. Most individual capital gains are taxed at a flat 10%, subject to important exemptions.
Are share sales taxed in Bulgaria?
Usually yes, unless the sale qualifies for an exemption such as listed securities on qualifying markets.
Are property gains taxed in Bulgaria?
Usually yes, but some home-sale exemptions apply if the ownership-period tests are met.