Payment of local taxes and fees
 

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
Important to know

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. For example, information regarding the payment of local taxes and fees collected by Sofia Municipality may be found on the following 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 30 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:

  • First instalment (1 March until 30 June of the respective year);
  • Second instalment (by 30 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.


The tax is determined based on a formula which includes three components:

  • the engine power of the vehicle;
  • the manufacturing year of the vehicle;
  • the environmental category of the vehicle.

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:
- 0,4 to 0,8 % of the assessment of the property in case of donation between brothers and sisters and their children;

- 3,3 to 6,6 % of the assessment of the property between parties other than those stated above;

Upon acquisition of property against consideration:
- 0,1 to 3 % of the assessment of the transferred property. The specific amount is set by the municipal council in the Ordinance on the size of the local taxes and fees.


Patent tax

 

Patent tax is paid in four equal instalments:

  • For the first quarter – by 31 January;
  • For the second quarter – by 30 April;
  • For the third quarter – 31 July;
  • For the fourth quarter – by 31 October.

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.

 

Electronic services

Making enquiries and filing tax returns 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
Important to know

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
For more information

More information regarding the e-services related to local taxes and fees is available on the website of your municipality and on the following website.

Write to us
Ministry of Economy
8, Slavyanska Str., Sofia 1052, Bulgaria
BULSTAT: BG176789453
phone: +359 2 940 7001

fax: +359 2 987 2190
 
Operational Programme This item is available only in Bulgarian
Contacts: 8, Slavyanska Str. Sofia 1000, Bulgaria tel: +359 2 940 7001 e-mail: e-docs@mi.government.bg
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