Because the Bulgarian law still does not allow non-resident individuals to own land, the majority of investors and home buyers are purchasing their properties through a company registered in this country. However having a company is a serious issue and investors must accept seriously the requirements of the tax law, which is quite strict and conservative. During the recent years the tax authorities have become quite active and regular checks are performed with or without a reason.

Even if your company is registered just to own a property and not actively trading, it is still subject to control and inspection by the local tax officers.

Every Bulgarian company has tax and administrative reporting obligations which have to be performed periodically. Although established only for land acquisition you need an accountant to handle these obligations.

If the company accounts are not kept accordingly or if deadlines are not met, your company will be seriously fined and should expect future inspections from the tax office! The penalties vary!

If your company is renting a property and accepts rental income, or if it is selling and/or purchasing properties no matter of the goal of the acquisition - it is then automatically considered as fully operational company which means a lot of paperwork, invoicing, tax payment and the services of a qualified accountant.

In compliance with the Bulgarian commercial legislation every Bulgarian company no matter is it shell, dormant or active is subject to year end closure procedure of the company accounts.

The procedure consists of year end tax return submission to the Bulgarian National Revenue Agency with deadline 31st of March next year and publishing of the financial reports to the Bulgarian Registry Agency with deadline 30th of June next year.

For non-abidance by the statutory requirements and deadlines, the penalties are as follows:

• For not submitting on time /31.03.2009/ the year end closure documents and the Annual Financial Declaration for 2008 in the National Revenue Agency - The sanction will be from BGN 500 to BGN 3000 in compliance with the Corporate Income Tax Act, art. 262;
• For not publishing on time /30.06.2009/ the year end closure documents in the Registry Agency – The sanction will be from BGN 2000 to BGN 3000 in compliance with the Law on accountancy, art. 47 paragraph 3;
• The lawful interest which the authorities impose for delay;

In order to facilitate the year end closure in Bulgarian Accountants we have tailored a service package for our clients without being necessary your coming in Bulgaria. You will need only to sign, stamp and send by post to our office in Irland some documents.

All along with the good sides of the Bulgarian property investment or home acquisition, you should be prepared for some paperwork. Things do not differ a lot from setting up a company in your home country but note that there are specifics too.

Apart from the statutory year end closure your Bulgarian company has regular and one-time administrative obligations which in general include:

• Declaration of the purchased property with the local municipality within 2 months from the purchase;
• Payment of council fee and garbage tax on Quarterly base;
• Property, furniture and equipment insurance policy;
• Calculation and payment of Gain Taxes on quarter or annual base in case of letting or selling property;
• Monthly submission of VAT returns provided that the company is VAT registered;
• Payment of health / national insurance contributions and payroll calculation of the company’s manager;
• Registering with local suppliers of electricity, water, telephone and ect.;
• Virtual office services - receiving of paper invoices and any other post ;tracking of unpaid liabilities
  related to third parties; creation of payment orders in the e-banking ; telephone line;

The property management service of BULGARIAN ACCOUNTANTS includes:

• Servicing of all Inquires and Complaints - Quick response and resolution to all inquires and complaints and keep a detailed record of all communication
• Collection of all Fees and Rents - Collection of rent from tenants; Collection of all association fees from unit owners; Collection of all coin-operated revenue; Take action on all delinquent accounts
• Leasing - Advertise and show units; Collect applications and screen applicants; Execute lease and collect security deposit
• Maintenance, Repairs, and Improvements - Coordination of all interior and exterior maintenance and repairs; Plan and coordinate all capital improvements for the property; Coordinate all lawn care, snow removal and trash removal; Provide common area cleaning service;
• Accounts Payable and e-banking - Coordinate getting bids, executing any agreements & contracts, and issuing and purchase orders; Paying invoices;
• Budgeting - Working with owner / association, create working budget for property; Generate a long-term plan for reserves and capital improvements 
    
• Professional Services - Maintain account relationships with attorney, insurance agent and ect.

Bulgarian Accountant is leading provider of accounting, payroll, taxation and business solution services in Bulgaria. Our online applications let us serve our clients from a distance. No matter what is your business activity for your active Bulgarian company we are able to provide the following professional services:

• Company establishment and VAT registration services;
• Property acquisition analyses, advises and procedure;
• Bookkeeping services on a monthly base in compliance with the Bulgarian and International Accounting legislation;
• Payroll and Personnel services and representation before the Bulgarian Social Security Institute;
• Submission of VAT and INTRASTAT returns and representation before the National Revenue Agency;
• VAT refund services – For EU and Non-EU companies registered for VAT abroad;
• Case studies in Taxation, minimizing of Tax exposure and implication of Double Avoidance Tax Treaties;
• Business solutions and management services;
• Reporting and Record Retention  - Monthly detail on ledger entries; Monthly detail of income statement; Annual reporting, structured for tax reporting; Maintain all historical records and backup of automated systems;