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Inheritance tax in Bulgaria 2026
Bulgaria's inheritance tax barely exists for families: the surviving spouse and all direct-line relatives — children, grandchildren, parents — are fully exempt, and every other heir deducts EUR 127,823 before municipal rates of at most 6.6% apply.
Gifts follow the same pattern: spouse and direct line exempt, siblings at 0.4–0.8%, everyone else 3.3–6.6% of value.
At a glance
- top rate
- 6.6% (unrelated heirs, municipal maximum)
- entry band
- 0% for spouse and direct line; EUR 127,822.97 exemption per other heir
- tax year basis
- Per inheritance or gift
- filing deadline
- Assessed by the municipality per heir
- residency basis
- Bulgarian-situated property; Bulgarians' foreign estates unless taxed abroad
- regime flag
- No wealth tax; municipal real estate tax 0.01–0.45%
Rates
Inheritance and gift tax (2026)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Surviving spouse and direct-line relatives (children, grandchildren, parents) — inheritances and gifts |
| 0.4% – 0.8% | Value above EUR 127,822.97 (inheritances) | Siblings and their children — municipal rate |
| 3.3% – 6.6% | Value above EUR 127,822.97 (inheritances) | All other heirs — municipal rate |
| 0.4% – 6.6% | Full value by class | Gifts to lateral relatives and others (no general exemption) |
Thresholds & allowances
- Per-heir exemptionEUR 127,822.97
Each non-exempt heir's first slice is free (the former BGN 250,000); debts and funeral costs also reduce the base
- Public-interest giftsExempt
Donations to the state, municipalities, health, social and educational bodies carry no gift tax
Residency
Residency trigger
Bulgarian-located property is always in scope; Bulgarian nationals' foreign property is exempt where foreign inheritance tax was paid.
Non-resident treatment
Foreign heirs are taxed only on Bulgarian-situated assets, by the same classes and municipal rates.
Notes
- Heirs who later sell inherited property pay no capital gains tax either — inherited assets sell exempt.
- There is no wealth tax; owning property costs the 0.01–0.45% municipal real estate tax, halved for a main residence.
- Selling property that came as a gift is the trap: the acquisition cost counts as nil, so the whole price becomes taxable gain.
- Rates are set by each municipality within the statutory bands, so the exact bill varies by location.
FAQ
Do children pay inheritance tax in Bulgaria?
No — 0% for the spouse and all direct-line relatives; siblings pay just 0.4–0.8% and others 3.3–6.6%, each above a EUR 127,823 exemption.
Are gifts taxed?
Not to a spouse or direct-line relatives — 0%; lateral relatives pay 0.4–0.8% of value and unrelated recipients 3.3–6.6%, at municipal rates.
Figures: tax year 2026, compiled from public sources. Not tax advice.