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Rental Income from Bulgarian Property

Payment of rental income is made by a business entity or a self-employed person. Taxable income from rents or from equivalent consideration for use of movable or immovable property is defined as gross income less 10 per cent “recognized expenses”. A 10 per cent tax is withheld from the decreased income.

The person who has acquired rental income or other similar contribution for use of the rights or property owes advance tax on the difference between taxable income and social and health contributions that the person is required to make on their own behalf.

The tax is paid by the 15th of the month following the quarter of acquisition of income. And no advance tax is paid on rental income acquired during the fourth quarter of the fiscal year. This tax is dealt with in the final tax bill as determined in the annual return of the individual who has received it.

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