Property in Bulgaria: buying, letting and Danish tax

How does a home in Bulgaria affect your Danish tax?

If you are fully liable to tax in Denmark, a home in Bulgaria must be included in your Danish tax information. This applies whether you use it as a holiday home, let it out or plan to move in later.

If you move to Bulgaria permanently and your full Danish tax liability ends, Bulgaria taxes you as your country of residence. First establish which country you are liable to tax in.

What must you report when you buy a home in Bulgaria?

If you buy a home abroad, you must inform Skattestyrelsen (the Danish Tax Agency) about the property and provide an updated calculation of its market value every year. A purchase in 2026 is reported on your forskudsopgørelse (preliminary income assessment) in TastSelv (the Danish online tax portal) under Købt udenlandsk ejendom, and the calculated market value goes in box 610.

There is no Danish public valuation of homes in Bulgaria. You therefore calculate the market value yourself based on the purchase price, and Skattestyrelsen offers a calculator for this.

• Address, date of takeover and ownership share.
• Purchase price and calculated market value.
• Property taxes paid in Bulgaria.
• Interest on loans for the property.
• Rental income if the home is let.

Do you pay Danish property value tax on a home in Bulgaria?

Yes. If you are fully liable to tax, you pay ejendomsværdiskat (Danish property value tax) on a foreign home on the same principles as for a Danish home. The calculation is based on the market value you have calculated yourself.

If you have paid property taxes abroad, you can in many cases get a reduction in the Danish property value tax. However, land taxes, registration fees and other taxes or charges related to transfer and mortgaging do not give a reduction. Have it assessed how the Bulgarian taxes on your particular home should be treated.

How is rental income from a home in Bulgaria taxed?

Under the double tax treaty, income from real estate can be taxed in the country where the property is located. Bulgaria can therefore tax the rental income. If you are fully liable to tax in Denmark, you must also include it there, and Denmark gives credit for the Bulgarian tax.

In Denmark, rental income and interest expenses are reported in box 298 as foreign net investment income. If you have let the home for at least 12 months, the profit is reported in box 296. Bulgarian tax paid on the rental income is reported in box 588.

In Bulgaria, the standard personal income tax rate is 10 percent, and the annual tax return is generally filed between 10 January and 30 April of the following year.

• Keep leases, statements from rental platforms and receipts for expenses.
• Record periods of your own use and periods of letting.
• Keep receipts for tax paid in Bulgaria.

What happens when you sell the home?

Under the treaty, a gain on the sale of real estate can be taxed in Bulgaria. If you are fully liable to tax in Denmark, the sale must also be assessed under Danish rules, and Denmark gives credit for Bulgarian tax. The Danish rules on tax-free sale of your own home or holiday home may be relevant, but only if the conditions are met, and letting the property can affect this.

Bulgaria adopted the euro on 1 January 2026 at a rate of EUR 1 = BGN 1.95583. Purchase agreements from before 2026 are therefore usually in lev. Keep the documents in their original currency and with dates, so the purchase and sale price can be converted correctly into Danish kroner.