Taxation of foreign persons for income from rents

The taxable amount for assessment of the tax withheld at source on any income accruing to any non-resident legal persons from disposition of immovable property shall be the positive difference between the selling price and the documented cost of acquisition of the immovable property - Art. 199, paragraph 4 of the CITA. Any income from rent, which has its source inside the country, accruing to any non-resident natural person, were not accruing through a permanent establishment, shall be subject to levy of a tax withheld at source which shall be final (Art. 195, paragraph 1 of the CITA). The amount of tax shall be determined by multiplying the taxable amount by the rate of tax (Art. 6 of the CITA). Where the tax referred to in Art. 194 and Art. 195 herein has not been withheld and remitted according to the relevant procedure, the said tax shall be due in solidarity by the persons which incur tax liability for the relevant income - Art. 203 of the CITA. Any payers of income withholding the tax at source under Art. 194 herein shall be obligated to remit the taxes due as follows:
1. within three months after the beginning of the month succeeding the month during which a decision was made on distribution of dividends or shares in a liquidation surplus: in the cases where the owner of the income is a resident of a State wherewith the Republic of Bulgaria has an effective convention for the avoidance of double taxation;
2. not later than at the end of the month succeeding the month during which a decision was made on distribution of dividends or shares in a liquidation surplus: in all other cases.