Bulgarian farmland sales FAQ

Frequently asked questions

1. Q: Is there a property tax in Bulgaria for farmland?
   A: There is no annual property/land tax for the agricultural land in Bulgaria.
   
2. Q: Is there a Capital Gains tax in Bulgaria and if so, at what level?
   A: The Capital gains tax is only 10% at future sale of the land.
   
3. Q: What income tax is there?
   A: There is 10% tax of farm rental income tax.
   
4. Q: Is there VAT on purchasing farmland?
   A: No VAT is payable at transferring the ownership or at future sale of agricultural land
   
5. Q: Is there any restriction on selling land?
   A: There’s no restriction or limit on the number of re-sales
   
6. Q: Do I have to set up a Bulgarian company to buy land?
   A: At the moment, yes, but this is at modest cost and forms part of the conveyance process. For non residents in Bulgaria, buying agricultural land requires the setting up a limited liability company.
   
   Please read our “How to Buy” section for more details and cost.
   
   Please note: As from the 1st of January 2014, foreign citizens can buy agricultural land without need of setting up a BG company. Thus the market will go up significantly having also in mind that the EU subsidies for Bulgaria will be as high as the other EU countries like France
   
7. Q: Do I have to go to Bulgaria to buy farmland there?
   A: No. A POA notarized at Bulgarian Embassy/Consulate is enough.
   
   We at agrilandasels.com find property that is so low priced that an immediate decision and fast purchase is often required. To enable our clients to secure such bargains, we offer a way of buying quickly without visiting Bulgaria. It's called "Remote Purchase", when you authorize us to purchase on your behalf and you are the named beneficiary on the Contract.
   
8. Q: What grades of land are there in Bulgaria?
   A: Agricultural land is classified into 10 categories according to their productivity for yield of different crops and vegetable products and imposed limitations in accordance with the type of soil, climate, landscape and other features of the land.
   
   The most widely distributed fertile land in Bulgaria is from 3rd to 5th category. The higher the number, the lower the fertility of the land. The most unfertile land is category 10. That kind of land is gravel like and is not cultivated for crops.
   
   As agrilandsales operate in the area of the richest farmland in Bulgaria, our grades tend to be high.
   
9. Q: What are the crops in very fertile Dobrudja area of Bulgaria?
   A: High sunshine levels and good rainfall allow heavy cropping of many crops. The most commonly grown are wheat, rapeseed, sunflower, corn, and barley.
   

General note on taxation in Bulgaria.
Bulgaria has the lowest corporate and personal taxes in Europe. Even less than Cyprus. The rate is only 10% for income and corporate taxes, whatever the level of income. This is likely to attract increasing inward investment into farmland and push up prices.