How inheritance tax works in Bulgaria
Bulgaria inheritance tax is governed by the Local Taxes and Fees Act and is administered at municipal level. It applies to inheritances received by Bulgarian citizens, including property outside Bulgaria, and to property located in Bulgaria inherited by foreign nationals.
The surviving spouse and heirs in the direct line are exempt without limit. For siblings and their children, the municipal rate must fall between 0.4% and 0.8% on the beneficiary share above EUR 127,822.97 (the converted BGN 250,000 threshold). For everyone else, the range is 3.3% to 6.6% above that threshold.
A declaration is generally due within 6 months of the succession opening, and the tax is paid within 2 months after the municipal notice. The estate can include movable and immovable property, rights, receivables and debts unless a specific exemption applies.
Tax rates at a glance
- Spouse and direct line
- 0%Exempt
- Siblings and their children
- 0.4% - 0.8%
- Other heirs
- 3.3% - 6.6%
- Filing deadline
- 6 months
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesExpatsProperty ownersInvestorsBusiness owners
Watch out for
- The spouse and direct-line exemption is broad, but it does not remove the need for a will, probate plan or asset inventory.
- Municipal councils set the exact rate within the statutory range, so the bill can differ by location.
- Separate gift tax rules can apply to lifetime transfers, and real estate still carries local transfer and notary costs.
Frequently asked questions
Does Bulgaria have inheritance tax?
Yes, but with major exemptions. Surviving spouses and direct-line heirs are exempt, while other heirs can be taxed at municipal rates.
What is the inheritance tax rate in Bulgaria?
For siblings and their children the rate must be between 0.4% and 0.8% above EUR 127,822.97 of share value (the converted BGN 250,000 threshold). For other heirs it must be between 3.3% and 6.6%.
Do I need to file anything after a death in Bulgaria?
Usually yes. A declaration is generally filed with the municipality within 6 months of the succession opening, and tax is paid after municipal assessment.