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Tax return and tax solutions



For your convenience upon buying a property in Bulgaria and its further tax return BG Estates Worldwide is in partnership with one of the biggest companies - Property Tax International, which activity is in the sphere of the international tax return. Together with our partners we will do our best to find the appropriate tax solution for you and your properties!

    » About Property Tax International

Property Tax International (PTI) specialises in international tax solutions and ancillary services for the overseas property investor. PTI is part of the ESS Group incorporating Taxback International and Taxback.com, an Irish owned and globally positioned Group, providing international tax advice since 1996.
PTI offers investors a comprehensive worldwide service by ensuring that our clients are tax compliant in each of their resident and non-resident tax jurisdictions affected by their overseas property. The state of the art processing centre processes over 120,000 foreign tax returns per annum.

With a dedicated tax research team, Property Tax International has the latest knowledge of constantly changing property tax laws and regulations ensuring that all changes are addressed and implemented with immediate effect.

    » International Property Tax Services

Property Tax International (PTI) provide a complete tax accounting solution and associated financial services to suit your investment needs.


TAX SOLUTIONS:

    » Tax Filing

PTI provide a complete international accounting service incorporating tax advice of both foreign and resident tax obligations and tax filing solutions in the foreign tax jurisdiction ensuring tax compliancy at home and abroad.

    » Overseas Tax Returns:

Completion and filing of Foreign Income Tax Returns:
Tax returns filed for: Bulgaria - France - Germany - Hungary - Ireland - Poland - Portugal - Spain - Turkey - UK
  • Current year tax return - Individual & Company returns, VAT returns
  • Prior year tax returns - at a discounted fee
* If there is more than one owner of the same property, the fee for second and subsequent annual tax return will be offered at a 50% discount per person.

NB: If you are in receipt of rental income you have a tax obligation to declare this income both in the country in which income was received and in your country of residence.

    » Irish/ UK Tax Returns:

We offer a range of accounting services for Irish and UK residents. We work with you to ensure proper completion and filing of your Irish / UK Income Tax Returns

    » Tax Planning

Tailored Pre-Purchase Tax Reports are available specially tailored to the individual investor’s requirements. Each report is adapted to the personal needs of the investor(s) giving a complete overview of all taxes payable during the initial purchase, all on going taxes during the ownership period and what taxes would apply on the ultimate sale of the property. Also included: sections on Inheritance Tax (IHT), Transfer Tax, Capital Gains Tax (CGT), Income or Corporate Tax, Costs Deductions, Mortgage Relief and much more… would apply between family members.

* This is a must for all investors looking to a new market for the first time.

    » Tax ID Registration

A national Tax ID number is required by most countries when purchasing property and filing tax returns. PTI offer a registration service for Individuals, Companies and VAT registration.


ANCILLARY SERVICES:

    » Foreign Exchange Service

If you are making international payments from one currency to another, our chosen foreign exchange specialists Moneycorp will save you money by getting you the most competitive exchange rates available. They can also offer you complete protection from adverse exchange rate movements with the ability to fix a price for the future, as well as expert guidance helping you to trade at the optimum time.

    » Insurance - Holiday & Second Home Insurance Service:

Insuring your overseas property is an area often overlooked by investors and holiday home abroad. Intasure's international building and contents insurance cover is tailored to suit the needs of every investor or holiday home owner with properties abroad. Full contents cover available in 42 countries!

    » Mortgage Assistance

PTI Finance specializes in securing the best available mortgages for non-residents. Your mortgage advisor will guide you through the entire process and work on your behalf to secure the best existing mortgage through one of the foreign jurisdictions leading lending institutions.

    » Signatory Service:

If you choose to take out a mortgage in Poland the lending institutions require that you sign the documents in person before the bank. Our signatory service allows you to nominate PTI to act as your signatory before the bank eliminating your need to travel to Poland thus saving you considerable time and money.

    » Bank Account Service

Open a bank account to manage your property income, mortgage payments, make payments or open a savings account. Whatever you decide PTI will assist with the often timely and confusing process.

Open a bank account to manage your property income, mortgage payments, make payments or deposit savings.


PROPERTY TAX INFORMATION:

Each country has it's own tax legislation, own tax assessment rules and own tax forms with constantly changing tax rates and tax calculation methods. This is particularly the case within Eastern European countries as they commence to bring their tax laws in line with EU tax regulation. This coupled with language barriers can make filing your overseas tax returns a difficult and time consuming process. Our multi-lingual tax teams specialise in overseas property tax and offer you a service which simplifies the tax filing process.

    » Bulgarian Property Tax Information

Non-residents are taxed in Bulgaria on income arising from Bulgarian sources only and are liable to a number of other property related taxes outlined below.

An individual is considered resident in Bulgaria if s/he spends 183 days or more in any tax year (calendar year) in Bulgaria. Non-residents may also be liable for tax on the same source of income in their home country of residence, where taxes are levied on worldwide income. Relief for double taxation may apply.

In Bulgaria, land cannot be purchased by a non-resident, only buildings. Where a foreigner wishes to purchase land, s/he must do so in a Bulgarian registered company.

The building can be acquired in an individuals own name or through a Bulgarian company. The legal structure adopted when purchasing property will determine what Bulgarian property taxes apply.

    » Bulgarian BULSTAT Identification code

Foreign individuals, who do not have Personal Identification Number (PIN) or Personal Foreigner's Number (PFN) and own property in Bulgaria, are obliged to register in the BULSTAT Register to get an Identification code within 7 days of purchasing the property. Individuals are issued a Registration certificate.

When a Bulgarian company is set up, within 7 days of the issuance of the Court registration, a BULSTAT registration should be made to receive an Identification code (code under BULSTAT). The Company is issued an Identification card.

    » Bulgarian property taxes payable when purchasing a property are as follows:

Bulgarian Transfer fees Upon the Notary verification of the property purchase deal you will be required to pay Local tax/transfer fees at 2% and State Entry fee at 0.1% of the purchase price (Per Notary deeds). VAT on buildings purchased in Bulgaria is calculated at 20%. VAT applies when you purchase a property from a company that is registered for VAT.

    » Ongoing Bulgarian property taxes payable are as follows:

Income Tax on rents for a non-resident landlord is subject to 10% withholding tax on gross rents as of January 1st 2007 (15% previous years.) No deductions are allowed for costs incurred.

Bulgarian Corporate Income Tax is payable if property is purchased through a company and is calculated at 10% as of January 1st 2007 (15% previous years) on the company profits. Full deductions will be given for eligible costs incurred in connection with the property.

Bulgarian Local Property taxes (rates) are also payable quarterly and vary per location. Inhabited house duty is calculated at 0.16% of the Tax evaluation of the property (defined each year) and a Waste Collection Duty applies; it differs from municipality and property location. In general it varies from 0.20% to 0.80% of the property’s tax evaluation value.

    » Other applicable taxes are as follows:

Bulgarian Capital Gains Tax is payable on any increase in value since acquisition at 10% as of January 1st 2007 (15% previous years.) The gain is calculated on the difference between the sale price and the higher of the tax estimation and the price of acquisition (Notary Deeds), corrected by an inflation index. No Bulgarian CGT if property is held for more than 5 years.

Bulgarian Inheritance Tax is payable by non-resident beneficiaries on certain transferred assets. The tax rate depends on the relationship between the parties and the size of the inheritance. The lineal heirs are completely exempt from this tax. For all other beneficiaries the tax rate will apply only on property with tax evaluation above €125,000. Brothers and sisters pay 0.7% Bulgarian IHT on the amount above €125,000; any other person pays 5%.

    » Bulgarian Property Tax filling deadline.

The taxpayer is obliged to submit withholding tax return and pay Bulgarian withholding tax to the Tax Authorities by the end of the month, following the month, when any income has been received. If the tenant is a Bulgarian company or a foreign company with PE in Bulgaria, then the tenant submits Bulgarian withholding tax return, deducts tax from the rent and pays it. The annual corporate income tax return should be filed by 31 March of the year following the respective calendar year.

To find out more about our partners go to internet address: http://www.ptireturns.com/
 
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