Inheritance Tax

INHERITANCE TAX

How high are inheritance taxes in Bulgaria?

Bulgarian citizens and foreign individuals inheriting Bulgarian property are subject to inheritance tax. Bulgarian citizens are also liable to pay inheritance tax in respect of properties received from abroad.

The deceased’s estate is valued in the local currency (BGN) at the date of death of the deceased. The debts of the deceased, as evidenced to the tax authorities, and certain funeral expenses up to BGN1,000 (€511) are deductible.

The tax is payable by the heirs in respect to their own inheritance. The applicable tax rates depend on their relationship to the deceased and the value of their inheritance as follows:

INHERITANCE TAX RATES

 FOR SPOUSES AND HEIRS OF DIRECT DESCENT

TAXABLE INHERITANCE, BGN (€) MARGINAL TAX RATE

Up to 250,000 (€127,839) nil

Over 250,000 (€127,839) 0.70% on band over €127,839

INHERITANCE TAX RATES FOR ALL OTHER HEIRS

TAXABLE INHERITANCE, BGN (€) MARGINAL TAX RATE

Up to 250,000 (€127,839) nil

Over 250,000 (€127,839) 5% on band over €127,839

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