Many Bulgarian citizens have acquired real estate in the Republic of Greece in recent years. This notice aims to inform you about some of the key issues that may concern you as a property owner in the Republic of Greece.
1. Do I need to pay taxes in the Republic of Greece for the property I own there?
In the Republic of Greece, an annual “local property tax” is due for the property.
Additionally, property owners in Greece, who live abroad, are required to file a tax declaration, even if they have no income in Greece.
2. Do I need to file a declaration in the Republic of Bulgaria and pay taxes in Bulgaria with regard to the property I own in the Republic of Greece?
If you rent out your property in Greece, it means you will be receiving income from that property.
According to the Agreement between the Republic of Bulgaria and the Republic of Greece for the avoidance of double taxation on income and property (ADTA), income received by a resident of one state from real estate located in the other state may be taxed in that other state.
This means that a Bulgarian resident who receives rental income from a property located in Greece must pay tax on that income in Greece.
However, Bulgarian citizens are required to declare this rental income, received form the property in Greece, in their annual tax returns in Bulgaria, by April 30 each year.
Additionally, anyone renting out properties in Greece must register in a special Register for Short-Term Rentals.
3. Will the property in Greece acquired by the spouses during the marriage be subject to the marital property regime?
The answer to the above question is based on the application of European Union legislation.
Since there are different scenarios for the application of laws, we will only discuss the one where two Bulgarian citizens have married in the Republic of Bulgaria, their relationship is governed by the legal community property regime in Bulgaria, and they have not chosen a specific applicable law/jurisdiction other than Bulgarian law.
In this situation, Bulgarian law should apply, and the property purchased in Greece during the marriage will be considered part of the marital property.
Of course, there are various exceptions and nuances to the above, so for legal advice and more detailed information, please contact us for further details.
The news above is for information purposes only. It is not a (binding) legal advice. For a thorough understanding of the subjects covered and prior acting on any issue discussed we kindly recommend Readers consult Ilieva, Voutcheva & Co. Law Firm attorneys at law.
