Inheritance in Bulgaria — Complete Guide for Heirs (2026)

What you will learn

• When and how the succession opens.
• The four orders of succession and each heir's share.
• The difference between intestate and testate succession.
• How to accept the inheritance (expressly, tacitly, by inventory).
• How to renounce an inheritance and the consequences.
• The practical steps you need to take after the death of a relative.
• Tax obligations upon inheriting.
• How company shares are inherited.

When does the succession open

Under Article 1 of the Inheritance Act, the succession opens at the moment of the person's death. The moment of death is decisive for determining the circle of heirs, the scope of the estate, and the applicable law.

The succession opens at the deceased's last permanent address (Article 1). This matters procedurally: applications for acceptance or renunciation of inheritance, requests for an inventory, and other procedural steps are filed with the district court at the deceased's last permanent address.

The heirs have the right to inherit from the moment the succession opens, but this does not mean they automatically become owners of the estate. The inheritance must be accepted (expressly, tacitly, or by inventory). Until acceptance, the heirs have the status of persons “called to inherit.”

Where a person has been declared absent by court order, the succession opens on the date stated in the court decision as the presumed moment of death.

When two persons who stand to inherit from each other die simultaneously (for example, in a car accident) and the order of death cannot be determined, it is presumed that they died at the same time and neither inherits from the other (the so-called “commorientes” rule).

Orders of succession (Articles 5-9 of the Inheritance Act)

The Inheritance Act arranges intestate heirs in four orders. Heirs from a closer order exclude heirs from a more distant order. The surviving spouse does not belong to any specific order but inherits alongside the heirs of whichever order applies.

Examples of distribution

Example 1: The deceased leaves a spouse and two children. The estate is divided into three equal parts: 1/3 for the spouse and 1/3 for each child.

Example 2: The deceased leaves a spouse and four children. Although an equal division would give the spouse only 1/5, the statutory minimum for the spouse is 1/4 (Article 9(1)). The spouse therefore receives 1/4, and the four children share the remaining 3/4 (3/16 each).

Example 3: The deceased leaves only parents, with no children and no spouse. The two parents receive 1/2 each. If only one parent is alive, they receive the entire estate.

Example 4: The deceased leaves a spouse and two parents. The spouse receives 1/2 and the two parents share the other 1/2 (1/4 each).

Example 5: The deceased leaves only a spouse, with no children, no parents, and no siblings. The spouse receives the entire estate.

Inheritance by representation (Article 10)

If an heir from a given order died before the deceased, their place is taken by their descendants (children, grandchildren). This is called “inheritance by representation.” For example, if the deceased had two sons, one of whom predeceased them and left two children (the deceased's grandchildren), the estate is divided as follows: 1/2 for the surviving son and 1/4 each for the two grandchildren.

Intestate vs testate succession

These two succession regimes exist in parallel and may apply simultaneously to different parts of the estate.

Intestate succession applies when the deceased left no will, or when the will does not cover the entire estate. The heirs and their shares are determined by the Inheritance Act in the order described above.

Testate succession applies when the deceased left a valid will (notarial under Article 24 or holographic under Article 25 of the Inheritance Act). The testator may dispose of their property freely, but only within the disposable portion (Articles 14 and 28-29). The reserved (forced) portion of certain heirs — children, the surviving spouse, and parents — cannot be infringed. If the will infringes on it, those heirs may bring a claim for restoration under Article 30.

When the deceased left a will covering only part of the estate, the remainder is distributed under the intestate succession rules.

It is important to note that testate heirs and intestate heirs may be different persons. The testator may bequeath their property to persons who are not their statutory heirs (friends, organisations, legal entities).

Accepting the inheritance

The inheritance does not pass automatically to the heirs. Active acceptance is required, and it may be express, tacit, or by inventory.

Express acceptance (Article 49(1))

The heir files a written declaration with the district court at the deceased's last permanent address, stating that they accept the inheritance. The declaration is entered in the special register for acceptance and renunciation of inheritance. Express acceptance is not mandatory because the inheritance can also be accepted tacitly.

Tacit (implied) acceptance (Article 49(2))

The inheritance is considered accepted when the heir performs an act that unequivocally implies an intention to accept. Examples: the heir moves into the inherited property, begins renovating it, sells an inherited item, collects rent from an inherited property, or files a tax return for the inherited assets. Simply obtaining a certificate of heirs is not considered acceptance.

Acceptance by inventory (Articles 60-62)

Acceptance by inventory is a special form under which the heir's liability for the deceased's debts is limited to the value of the inherited assets. This is extremely important when you are unsure whether the estate is burdened with debts. The procedure is as follows:

1. The heir files an application with the district court at the deceased's last permanent address for acceptance of the inheritance by inventory.
2. The application must be filed within 3 months of learning of the opening of the succession (Article 61(1)).
3. The court carries out an inventory of the estate.
4. An heir who has accepted by inventory must manage the inherited properties with the care of a prudent owner and cannot dispose of them without the district court's permission for 5 years from acceptance (Article 65).

Mandatory acceptance by inventory: Under Article 61(2), minors, persons under guardianship, and the State accept the inheritance by inventory only.

Renunciation of inheritance

Renunciation of inheritance is a unilateral declaration by which the heir states that they do not wish to accept the inheritance. It is governed by Articles 52-54 of the Inheritance Act.

Procedure

1. The heir files a written declaration with the district court at the deceased's last permanent address.
2. The declaration is entered in the special register for acceptance and renunciation of inheritance at the district court.
3. Notarial certification of the signature is not required but is recommended.
4. No court fee is payable.

Consequences of renunciation

• Renunciation is final and irrevocable (Article 52(2)). Once made, it cannot be withdrawn.
• The heir who has renounced is treated as having never been an heir.
• The share of the renouncing heir is distributed among the remaining heirs of the same order.
• If all heirs from a given order renounce, the inheritance passes to the heirs of the next order.
• If all heirs renounce, the inheritance passes to the municipality or the State.

Interpretive Decision No. 1/2021 of the Supreme Court of Cassation

The Supreme Court of Cassation held that a parent cannot renounce an inheritance on behalf of their minor child. The only protection is acceptance by inventory (Article 61(2)), which limits the child's liability to the value of the inherited assets.

Renunciation when the estate is indebted

If the deceased had significant liabilities (loans, tax debts, enforcement claims), heirs should carefully consider whether to accept the inheritance. Acceptance — including tacit acceptance — means assuming all the deceased's obligations, proportionally to the inherited share, with the heir's entire personal assets. The only protection when the picture is unclear is acceptance by inventory.

What to do step by step

Here are the practical steps you need to take following the death of a relative:

Step 1: Obtain the death certificate

The death certificate (akt za smart) is issued by the municipality (mayor's office) at the place of death. It is usually issued within 48 hours of the death being confirmed. You will need several copies for the various procedures.

Step 2: Request a certificate of heirs

The certificate of heirs (udostoverenie za naslednitsi) is issued by the municipality at the deceased's last permanent address. Documents required: a standard-form application, the death certificate (or a copy), and the applicant's identity document. The certificate is issued within 7 to 14 days. The fee is typically BGN 5-15 (approximately EUR 2.56-7.67).

Step 3: Establish the scope of the estate

Determine what property the deceased owned: real estate (inquiry at the Registry Agency and the Cadastre), bank accounts (with the certificate of heirs you can request information from banks), motor vehicles (inquiry at the Traffic Police), securities and company shares (inquiry at the Commercial Register).

Step 4: Check for liabilities

Before accepting the inheritance, establish whether the deceased had debts: tax liabilities (inquiry at the National Revenue Agency / NRA), loans (inquiry at the Bulgarian National Bank Central Credit Register), enforcement proceedings (inquiry with bailiffs). If there is doubt about significant debts, consider acceptance by inventory.

Step 5: Decide on acceptance or renunciation

Based on the information from Steps 3 and 4, make an informed decision: acceptance (if the estate is “clean”), acceptance by inventory (if you are unsure about debts), or renunciation (if the debts exceed the value of the assets).

Step 6: File the tax declaration under the Local Taxes and Fees Act

Heirs are required to file a declaration under Article 32(1) of the Local Taxes and Fees Act (ZMDT) with the municipality at the deceased's last permanent address. The deadline is 6 months from the opening of the succession (the death). A late filing carries a fine.

Step 7: Complete the necessary registrations and transfers

If the estate includes real property, ownership is registered at the Registry Agency by presenting the certificate of heirs, the death certificate, and the will (if any). Motor vehicles require re-registration at the Traffic Police. Bank accounts require presentation of the certificate of heirs and the death certificate to the bank.

Inheritance tax (Articles 29-44 of the Local Taxes and Fees Act)

Inheritance tax is governed by Articles 29 to 44 of the Local Taxes and Fees Act (ZMDT). The rate depends on the degree of kinship between the heir and the deceased.

Important details

The tax is calculated on the value of the estate, reduced by the tax-free threshold of BGN 250,000 and by the deceased's debts. The value of real property is determined by the tax assessment, while other assets are valued at market prices at the time of death.

The specific rate within the stated ranges is set by the municipal council at the deceased's last permanent address. Different municipalities apply different rates.

Example: An heir (a nephew, falling into the “all other heirs” category) inherits assets worth BGN 400,000 (approximately EUR 204,516). Tax-free threshold: BGN 250,000. Taxable base: BGN 150,000. At a rate of 5 % (a mid-range figure), the tax is BGN 7,500 (approximately EUR 3,834).

Deadline for filing the declaration: 6 months from the opening of the succession (Article 32(1) ZMDT). A late filing carries a fine of BGN 10-500.

Deadline for paying the tax: 2 months from receiving the municipal notification of the assessed tax.

Inheriting company shares

The inheritance of shares in commercial companies raises specific questions that deserve separate attention.

Shares in a limited liability company (OOD)

Shares in an OOD pass to the heirs, but the membership relationship (the status of partner) is not automatically inherited. The heirs acquire the proprietary value of the shares, but to become partners they need:

• A resolution of the General Meeting of Partners admitting the heir as a partner.
• The articles of association may contain special clauses on the inheritance of shares.
• If the heirs are not admitted as partners, they are entitled to the monetary value of the shares (the value determined on the basis of the company's balance sheet as at the end of the month in which the membership was terminated).

Shares in a joint-stock company (AD)

Shares in an AD are inherited without restrictions. The heirs automatically become shareholders and acquire all associated rights (right to dividends, voting rights, etc.). An entry in the shareholders' register is required.

Sole-owner company (EOOD/EAD)

On the death of the sole owner of the capital, the heirs inherit the shares. If there is more than one heir, the sole-owner company is transformed into a multi-partner company (OOD) or multi-shareholder company, unless the heirs agree that one of them will take all the shares.

Sole trader (ET)

On the death of a sole trader, the ET's enterprise may be taken over by an heir who wishes to continue the business (Article 60(2) of the Commerce Act). The heir files an application with the Commercial Register. If no heir wishes to continue the business, the sole trader's enterprise is wound up.

Practical tip: If the deceased was a sole owner or partner in a commercial company, consult a lawyer immediately. It is necessary to ensure continuity of the company's management, file the required applications with the Commercial Register, and protect the heirs' interests.

Frequently asked questions