Is the Sale of Investment Gold Taxable in Bulgaria?
The question of whether individuals in Bulgaria are required to pay tax on profits from the sale of investment gold often causes confusion. In this article, we provide a clear and definitive answer based on official statements from the National Revenue Agency (NRA) and the Personal Income Tax Act (PITA).
What Does the Law Say?
According to Art. 13, para. 1, item 2 of the PITA (2024 version):
“Income from the sale or exchange of movable property is not taxable, except for: a) vehicles; b) works of art and antiques; c) shares, stocks, and other financial assets.”
This means that investment gold in the form of high-purity bullion and coins (above 995/1000) does not fall into the listed exceptions and therefore is not subject to taxation.
Legal Update in 2024
Before 2024, the law included an additional clause (Art. 13, para. 1, item 2, letter “g”) that specifically addressed the taxation of precious metals. With the amendment in January 2024 (State Gazette, issue 106 of 2023), this clause was repealed. This simplifies the interpretation, making it clear that all forms of investment gold are treated as tax-exempt movable property.
Official NRA Statements
The NRA has repeatedly expressed a clear position on this matter:
- In statement No. 24-34-157 dated 08.02.2013, the NRA explicitly states that income from the sale of investment gold that is not considered a financial asset, collectible, or antique falls under Art. 13, para. 1, item 2 of the PITA and is not subject to tax.
- Additionally, in official document No. 3731 published on the NRA website, it is clearly stated:
“Income from the sale of investment gold by individuals is not subject to tax under the PITA.”
What Qualifies as Investment Gold According to the NRA?
To qualify as “investment gold” under the NRA and the VAT Act, the gold must meet the following criteria:
- Bullion or bars with a minimum purity of 995/1000;
- Gold coins with at least 900/1000 purity, minted after 1800, that were or still are legal tender in their country of origin, and sold at a price not exceeding 80% above the gold content value.
Practical Example
If an individual buys investment gold for 5,000 BGN and later sells it for 6,000 BGN, the profit of 1,000 BGN is not taxable.
Is Investment Gold Considered a Financial Asset?
The answer is no. Investment gold is not considered a financial asset under Bulgarian tax legislation.
Legal Basis:
- The PITA does not define the term “financial asset.” According to Art. 46, para. 2 of the Law on Normative Acts, the closest applicable definition should be used from another law.
- According to §1, item 3 of the Supplementary Provisions of the Corporate Income Tax Act (CITA):
“A financial asset is an asset as defined by applicable accounting standards.”
- Under international accounting standards, financial assets include cash, stocks, bonds, and receivables. Gold is not included — it is classified as a commodity asset.
Confirmed by the NRA:
Statement No. 24-34-157 from 08.02.2013 confirms that investment gold is not treated as a financial asset, and therefore, profits from its sale may fall under the non-taxable category under Art. 13, para. 1, item 2 of the PITA.
Conclusion and Recommendations
Current legislation and official NRA statements are clear: the sale of investment gold by individuals in Bulgaria is not taxable. This makes investment gold an attractive and tax-efficient asset for preserving and growing personal savings.
Still, it is always good practice to ensure that the gold you buy or sell meets the legal definition of investment gold to fully benefit from this tax exemption.
Legal Notice:
The information in this article is for general informational purposes only and should not be construed as tax, financial, or legal advice. For specific cases, please consult a qualified professional.
