According to the Bulgarian law the inheritance tax is imposed on property inherited by law or by will in the country or abroad of Bulgarian citizens, as well as property in the country of foreign citizens.

The inheritance includes the movable and immovable property and rights to such property owned by the testator, as well as his other property rights, receivables and liabilities at the time of opening the inheritance, unless otherwise provided by law.

The inheritance tax is paid by the heirs by law or by will. However, the inheritance tax is not paid by the spouse and the heirs in a straight line without restrictions – children, grandchildren, etc.

Upon opening an inheritance, the taxable persons or their legal representatives are obliged within 6 months to submit a declaration to the municipality of the last residence of the testator. They shall indicate in the declaration the inherited property by type, location and assessment. The amounts in the accounts of deceased persons shall be paid to their heirs upon presentation of a certificate from the municipality that they are specified in the declaration of inheritance tax and the tax has been paid.

The taxable inheritance is divided into inheritance shares, as the share for each heir is determined by the order indicated in the Inheritance Act.

Each local Municipal Council shall determine the amounts of tax separately for each heir as follows: 1. for siblings and their children - from 0.4 to 0.8 per cent for a hereditary share over BGN 250,000; 2. for persons other than those specified in item 1 - from 3.3 to 6.6 per cent for a hereditary share over 250,000 BGN. Notice for the due tax is sent from the Municipality to each of the heirs. The tax is paid within 2 months of receipt of the notice.

The following are excluded from the inheritance tax: the property bequeathed to the state and municipalities; the property bequeathed to the Bulgarian Red Cross, the legally registered denominations in the country and other legal entities that are not traders, with the exception of non-profit organizations designated for private benefit activities; ordinary household goods; the small agricultural inventory; libraries and musical instruments; the objects of art, the author of which is the heir, one of the heirs or their relative in a straight line without restriction, and in a collateral line - up to the fourth degree; the unreceived pensions of the testator; the property abroad of Bulgarian citizens, for which inheritance tax has been paid in the respective state.