Family & succession

Inheriting Property in Bulgaria When You Live Abroad

A parent or relative leaves a flat in Sofia or a house on the coast, and the heirs live in Germany, Russia or the UK. Which law applies, what has to be done in Bulgaria, and what it costs.

By  3 min read

On this page
  1. Which country’s law governs the estate?
  2. What happens in Bulgaria
  3. Inheritance tax
  4. Points that catch foreign heirs out
  5. Questions clients ask

Cross-border inheritances are now common in Bulgaria: Bulgarians who emigrated decades ago still own family homes here, and foreigners who bought holiday property leave it to children living elsewhere. The legal steps are manageable, but they combine EU law, Bulgarian procedure and municipal tax — and delays tend to make them more expensive.

Which country’s law governs the estate?

For deaths on or after 17 August 2015, the EU Succession Regulation (No. 650/2012) decides. As a rule, the whole estate — including property in Bulgaria — is governed by the law of the country where the deceased had their last habitual residence. A person can instead choose, in a will, the law of their nationality.

Whatever law governs the succession, Bulgarian rules still decide how ownership of Bulgarian real estate is recorded, and Bulgarian tax rules apply to it.

What happens in Bulgaria

  1. Certificate of heirs

    Issued by the municipality of the deceased’s last permanent address in Bulgaria. It lists the legal heirs and is the basic document for banks, notaries and registers.

  2. Decide: accept or renounce

    Acceptance can be tacit, but a formal declaration to the district court gives certainty. Heirs worried about debts can accept by inventory, which limits liability to the value of the estate. Renunciation is a written declaration to the district court.

  3. Tax declaration

    Filed within six months of the death with the municipality of the deceased’s last permanent address, which assesses any inheritance tax. A declaration filed by one heir covers the others; late filing attracts a fine.

  4. Title and registration

    The heirs’ rights are reflected in the Property Register; the property can then be sold, partitioned or kept.

Inheritance tax

Inheritance tax in Bulgaria is a municipal tax with modest rates and a broad exemption for close family:

HeirTax
Surviving spouse and relatives in the direct line (children, grandchildren, parents, grandparents)Exempt
Brothers, sisters and their children0.4%–0.8% on the part of each heir’s share above about EUR 127,823
Other heirs3.3%–6.6% on the part of each heir’s share above about EUR 127,823

Each municipality fixes the exact rate within these bands. The threshold is the former BGN 250,000, converted at the fixed euro rate.

Points that catch foreign heirs out

  • Agricultural land and forest. Heirs from outside the EU may inherit them but must transfer them, within three years, to someone entitled to own them.
  • Reserved shares. Under Bulgarian law, children, the surviving spouse and in some cases parents are entitled to a reserved share that a will cannot cut out.
  • Co-ownership. Several heirs become co-owners. If they cannot agree on selling or keeping the property, any of them can ask for partition through the courts.
  • Documents from abroad. Death and birth certificates issued abroad need an apostille or legalisation and a certified translation.

Questions clients ask

Do I have to travel to Bulgaria to deal with the inheritance?

Usually not. With a notarised and apostilled power of attorney, we can obtain the certificate of heirs, file declarations, register the property and, if you wish, sell it on your behalf.

Will I pay inheritance tax in Bulgaria and in my own country?

Possibly. Bulgaria taxes the Bulgarian property, and your country of residence may also tax the inheritance under its own rules. Whether credit is given depends on that country’s law and any applicable treaty, so it is worth checking before the estate is distributed.

The deceased had debts. Am I liable for them?

An heir who accepts without reservation answers for the deceased’s debts in proportion to their share. Acceptance by inventory limits that liability to the value of what is inherited, and renunciation avoids it altogether — but also gives up the inheritance.

This guide is general information about Bulgarian law as it stood on the date of publication. It is not legal advice for your specific case.

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