Български 
Ministry of Economy and Industry
8, Slavyanska Str., Sofia 1052, Bulgaria
BULSTAT: 177549105
Payment of local taxes and fees
Updated last 26.03.2021
In this section you can find the following information:
- General information regarding local taxes and fees
- How are local taxes and fees paid?
- What is the deadline for the payment and the method to determine local taxes?
- Electronic services.
General information regarding local taxes and fees
Local taxes and fees are regulated by the Local Taxes and Fees Act (LTFA). Based on this act the municipal councils adopt:
- „Ordinance on the local taxes and fees“; and
- „Ordinance on the definition and administration of local fees and prices of services provided by the respective municipality“.
These are the two ordinances by virtue of which the municipal councils set the local taxes and fees due in the respective municipality.
Local taxes are linked to the subject of taxation. The following local taxes concern business entities:
- Real estate tax;
- Motor vehicles tax;
- Tax upon acquisition of property by way of donation or against consideration;
- Patent tax;
- Tourist tax; and
- Tax on taxi services to passengers.
Local fees are due for the use of a service rendered by the respective municipal body. They depend on the type of the services. The following local fees concern business entities:
- Household waste fee;
- Fees to use markets, sidewalks, squares, street lanes, fairs and terrains with other intended purposes;
- Technical service fees; and
- Administrative service fees.
| Important to know | |
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It is important to know that the act stipulates only a framework for the tax due, the specific rate is set by each separate municipality and accordingly the rates may differ. |
How are local taxes and fees paid?
The local taxes and fees collected by the respective municipality may be paid on site at the Local Revenue Department of the respective municipality, as well as via bank transfer to the account of the respective municipality. It is important to know that in case of payment via bank transfer the payment document should include the code of the respective type of payment. Information regarding the bank accounts and the payment methods for local taxes may be found on the website of the respective municipality. Information on bank accounts for payment of local taxes and fees is also available on the NRA website.
The deadline for the payment of the local taxes and fees depends on the respective local tax or fee.
What is the deadline for the payment and method of calculation of the local taxes?
The table below presents a summary of the methods to determine the amount and deadlines for the payment of the various types of local taxes and fees:
| Local taxes |
||
| Tax |
Payment deadline |
Method to determine the amount of the tax/fee |
|
Annual real estate tax |
Real estate tax is paid in two equal instalments within the following deadlines: First instalment (1 March until 30 June of the respective year); Second instalment (by 31 October of the respective year). It is important to know that those who prepay the tax for the full year by 30 April have the right to a discount of 5% of the tax due.
|
Between 0,1 and 4,5 per mille of the tax assessment of the real estate. The specific amount is set in the Ordinance on the local taxes and fees adopted by the respective municipal council. |
|
Annual motor vehicle tax |
The motor vehicle tax is paid in two equal instalments within the following deadlines:
|
The tax is determined based on a formula which includes three components:
|
|
Tax upon acquisition of property and motor vehicles by way of donation and against consideration |
In case of acquisition of property without consideration the tax should be paid within two months as of possession of the property (except the transfer of right on real estate and motor vehicles Upon acquisition of property by way of donation and real estate and motor vehicles against consideration the tax is paid upon the transfer of the rights on the real estate and the motor vehicles. |
In case of acquisition of property without consideration: - 3,3 to 6,6 % of the assessment of the property between parties other than those stated above; Upon acquisition of property against consideration: |
|
Patent tax |
Patent tax is paid in four equal instalments:
|
The municipal council determines the size of the patent tax in the Ordinance on the size of local taxes and fees. The amount is set within limits in accordance with Appendix No 4 of the LTFA and depends on the location of the site on the territory of the respective municipality. |
|
Tourist tax |
The tourist tax due for the calendar year is paid by the tax liable person by the 15th day of the month following the month during which the accommodation services per night occurred. |
The municipal council sets the size of the tax in the Ordinance on the local taxes and fees within limits of BGN 0,20 to BGN 3,00 per night.
|
|
Tax on taxi services to passengers |
The tax is paid prior to obtaining the permit to render taxi services in accordance with the Automobile Transport Act. |
The municipal council sets the size of the tax for the respective year in the range between BGN 300 and BGN 1000 in the Ordinance on the local taxes and fees. |
The specific size and payment deadlines for the local household waste fees and for the use of markets, sidewalks, squares, street lanes, fairs and terrains of other intended purposes are set out in the Ordinance on the definition and administration of local fees and prices of services rendered by the respective municipality.
In which cases are companies required to file a local tax return?
- Real estate tax - all companies that have acquired real estate should within two months from the date of acquisition to submit a declaration to the Municipality of the location of the property, in which declaration to submit information about the book value of the property and other circumstances important for determining the tax.
- Tax on acquisition of property free of charge - companies that have acquired property free of charge (except for the transfer of real estate, limited real rights over real estate and motor vehicles) are required to file a declaration within two months of receipt of the property in the municipality at the address of the company.
- Patent tax - the patent tax return is filed by January 31 of the current year, and in case the activity starts after this date, the return is filed immediately before the start of the activity.
- Tourist tax - the declaration for taxation of the nights with tourist tax is submitted by January 31 of each year for taxation with tourist tax for the previous calendar year;
- Tax on taxi transport of passengers - the declaration for taxation with tax on taxi transport of passengers is submitted before receiving the issued permit under the Road Transport Act.
Electronic services
Making enquiries on local taxes and fees can be performed electronically through the e-services accessible in the National revenue agency (NRA) NRA system.
| Important to know | |
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It is important to know that the information regarding the liable persons, the subjects taxed with local taxes and fees, their tax assessments and reporting values is provided on a daily basis by the municipalities to the Ministry of Finance. |
| For more information | |
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More information regarding to local taxes and fees is available on the website of your municipality and on the following website. |
