Bulgarian limited company annual tax services

Many foreign property owners in Bulgaria, own their properties through a Limited Company namely due to the fact that till 2012 all foreign citizens could only buy properties without any land for all other properties in Bulgaria they had to register a limited company and buy the property on the name of the company. After 2012 this restriction was lifted for the EU citizens and citizens of EEA countries as they now can buy regulated land and the buildings built in them as physical persons. The restriction is still valid for all nationals for buying agricultural land.

Due to that restriction and as a result of the boom in buying properties in Bulgaria, after 2005 many companies were registered. Unfortunately the Bulgarian Government did not create a special regime regarding companies which exist with the only purpose to be an instrument through which the buyers can own a property in Bulgaria, therefore annual accountancy reports are required for every company by the Tax Services. The situation got even more complicated when the companies registered before 01.01.2008 had to go through a procedure and reregister under the new Trade Registry. The deadline to re-register a Bulgarian limited company established before 2008 was the end of 2011. What happens to companies which still own properties but were not re-registered, is a complicated question with not much practice as of yet.

On other hand the companies, already registered and listed in the Bulgarian Trade Registry, which by the way show all the information online in the trade registry brra.bg, are obliged to submit on annual basis two different documents

1. Annual Tax Declaration

2. Financial Report for the Company.

Still many, many property owners in Bulgaria, being away and far from the confusing legislation regarding these non active companies, have failed to submit these documents.

We at Best Bg Properties realize how confusing and intolerant is the law regarding these companies created with the only goal to own a property. We have done many attempts to provoke discussions on these topics hoping that it can make a change. Obviously there is no result so till now every one who has a company registered in Bulgaria must submit the necessary papers. We do provide this service for our customers, even with the risk to be boring we send a few warnings when the date is close.

Still due to the fact that many investors have used random and occasional mediators and brokers to purchase their Bulgarian properties they were either not informed or misinformed regarding these duties about their Bulgarian Companies. As a result the Relative Bulgarian Institutions penalize them under the Acting Law in Bulgaria. To make the situation really bad comes the fact that they receive these notices and penalizing letters to addresses which have been stated as company addresses, most often addresses of the brokers that the buyers have used while purchasing their property in Bulgaria. So the owners in fact never understand that they were penalized. Unfortunately this can come to a moment when these Institutions can provoke a court action and cover what is owed by selling the property that this company owns trough a public auction. Some owners appear to be really lucky as the Tax Services just didn't pay attention to their failure to submit the demanded papers.

It is quite a complicated row of actions to be explained in a small article but to cut the long story short- many property owners in Bulgaria actually risk their ownership when they do not submit regularly Tax Declarations and Financial Reports for their Bulgarian companies.

Being quite experienced in this process and knowing both sides of this problem we at Best Bg Properties offer a service that can clear the situation around your Bulgarian property and the company that owns it.

We will check:

" If your company has been re-registered;

" When you have applied with declarations and Reports and for which years you have not

" Do you have Any Penalties already in Force ;

" Do you have any other legal problems as a result of not submitting the necessary papers

" Is your property still owned by your Bulgarian Company

After knowing all that we will give you a working solution.

Price for this service will be given upon request and will differ from case to case.