WHAT IS INCOME TAX FROM RENTAL INCOME IN BULGARIA?
- Municipal Tax: 10% of rental income (Revenue less bonafide tax-deductible expenses)
- An important requirement is your property to be registered in The Territorial Tax Administration with a view to its legal servicing and management. The annual tax should be paid too. According to the Bulgarian legislation the owners should pay tax on the rental income they receive. Using our service “Accounting, administrative service and return of taxes” we can provide these accounting and administrative services on your behalf, so that you comply with all laws of Republic of Bulgaria.
DO I NEED TO CONCLUDE ANY PROPERTY INSURANCE IN ADVANCE?
- Another essential requirement for the quality management of your property is that it has “Insurance for movable and immovable property”. For compensation over this insurance are liable damages (including damages, loss and expenses) of the insured property as a result of: fire, explosion, hailstorm, flood, freezing, landslide, demolition, earthquake and actions of misuse by a third party. We are an authorized representative of Allianz Bulgaria Holding - a world leader in the field of insurance and re-insurance.
We can assist you in this insurance on your behalf.
- Health/life insurance of your tenants must be arranged to ensure their untroubled and secure stay in the property. We are able to arrange this insurance on your behalf
HOW DOES RENTAL REVENUE COMPARE IN TOURIST DESTINATIONS?
A Residence will generate demand during seasonal >demand periods<.
- A seaside residence may mainly generate revenue from mid June through mid September; i.e. during 90 days of the year.
- A mountain residence may mainly generate revenue from mid December through mid March; i.e. during 90 days of the year.
- The potential letting days virtually match.
- If you purchase an attractive Residence that can be expected to be high in demand, you can expect a higher rental revenue.
- Demand and letting prices vary. To optimize rental revenues, we contracted with hospitality professionals from whom you can expect optimal results.
HOW MUCH RENTAL REVENUE IS MY REVENUE?
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- The published rental rate includes VAT.
- VAT in Bulgaria currently equates to 20%.
- As Investor, you will be entitled to 85% of the Rental Revenue, exclusive of VAT.