Settling an inheritance in Bulgaria begins at a moment when nobody is thinking about paperwork: straight after the loss of a loved one. Even so, several deadlines start to run from the day of death, and the decisions made in the first weeks determine whether the heirs receive the estate smoothly or end up liable for someone else's debts, fines for a late declaration and disputes among themselves.
In this guide we have set out the first steps after the death of a loved one in the order in which they usually arise: documents, legal heirs, the will, acceptance or renunciation, the declaration to the municipality, bank accounts, property, companies and debts. For topics that need more detail, you will find a link to a separate, in-depth article.
The first documents: death certificate and certificate of heirs
Death certificate and extract
A death is certified by a medical notice of death issued by a doctor. On that basis, the civil registrar at the municipality draws up a death certificate (акт за смърт) – under Art. 54 of the Civil Registration Act this must happen no later than 48 hours after the death. The family is issued an extract of the death certificate (препис-извлечение от акт за смърт), which by law is free of charge (Art. 40 of the same Act). Get several copies – you will need them at the bank, in court and with the utility providers.
Certificate of heirs: where and how it is issued
The main document with which the heirs prove their rights is the certificate of heirs (удостоверение за наследници). It is issued by the municipality (the district administration or the mayor's office) at the deceased's last permanent address, on the basis of the data in the population register. It lists all living legal heirs – spouse, children, grandchildren of predeceased children, parents, brothers and sisters – depending on the particular case.
In practice the procedure is as follows:
- You file an application with the municipality (district) at the deceased's last permanent address.
- You present an identity document. If the application is filed by someone else, that person must hold a power of attorney.
- You pay the fee according to the tariff of the municipality concerned.
- You receive the certificate, usually within a few working days; sooner with the express service.
Check the certificate carefully. If a child from another marriage or an adopted child is missing from it, this must be corrected before any transactions – an omitted heir can later challenge a sale or a partition.
If you live outside Bulgaria, the certificate can be requested through an attorney-in-fact. The full procedure for heirs abroad – powers of attorney, apostille, consulate – is described in our separate article on how to settle an inheritance in Bulgaria if you live abroad.
Who are the legal heirs?
Where there is no will, the estate is distributed according to the rules of the Inheritance Act (Закон за наследството, ЗН). The heirs are called in groups (orders), and a closer order excludes a more distant one. The spouse inherits together with each of the orders, but with a different share.
| Whom the deceased left behind | Who inherits | Share of the surviving spouse |
|---|---|---|
| Children (and grandchildren of predeceased children) | The children in equal shares (Art. 5 of the Inheritance Act) | The same as one child (Art. 9(1) of the Inheritance Act) |
| No children, but parents | The parents in equal shares (Art. 6 of the Inheritance Act) | 1/2, or 2/3 if the marriage lasted more than 10 years (Art. 9(2) of the Inheritance Act) |
| No children or parents, but brothers and sisters | The brothers and sisters (Art. 8 of the Inheritance Act) | 1/2 or 2/3 under the same rule |
| No other heirs from these orders | – | The entire estate (Art. 9(3) of the Inheritance Act) |
A few rules that often surprise families:
- Representation. If a child of the deceased died before them, that child's own children – the grandchildren – inherit in their place (Art. 10 of the Inheritance Act).
- Adopted children are treated as children of the deceased (Art. 5(2) of the Inheritance Act).
- Children from different marriages inherit equally, regardless of whether they lived with the deceased.
- The spouse inherits only if the marriage was still in force. Cohabitation, however long, gives no inheritance rights by law.
If there is a will, it can change these shares, but it cannot affect the so-called reserved share (запазена част) of the spouse, children and parents. If you believe that a will infringes your reserved share, seek advice from a family and inheritance lawyer in good time.
Is there a will? How to check
A will may be notarial or holographic (handwritten) (Art. 23 of the Inheritance Act). A notarial will is drawn up by a notary in the presence of two witnesses. A holographic will must be written entirely and signed by hand by the testator and must bear a date (Art. 25 of the Inheritance Act).
How to check whether there is a will:
- Ask the family and go through the deceased's personal papers: a holographic will is often kept at home or with a trusted person.
- Check with the notaries the deceased dealt with. A holographic will may have been handed to a notary for safekeeping in a sealed envelope (Art. 25(2) of the Inheritance Act).
- Make an enquiry at the Registry Office of the Registry Agency (Агенция по вписванията). Wills deposited for safekeeping are recorded there, and wills that have been opened and that concern real property are registered.
Anyone holding a holographic will must, as soon as they learn of the death, ask a notary to open and announce it (Art. 27 of the Inheritance Act). If a will is found after the estate has been accepted, the heir is not obliged to fulfil the legacies beyond the value of the estate (Art. 55 of the Inheritance Act).
Acceptance, renunciation or acceptance under inventory: which to choose
The estate is acquired by accepting it, and acceptance takes effect from the day of death (Art. 48 of the Inheritance Act). This is also the most important decision for every heir, because together with the estate you also take on the deceased's debts.
Tacit and express acceptance
Acceptance may be express – by a written application to the district court judge at the place where the succession opened, which is entered in a special register (Art. 49(1) of the Inheritance Act). Far more often, however, an estate is accepted tacitly: by any act that clearly shows an intention to accept it (Art. 49(2) of the Inheritance Act). Examples of such acts are selling an inherited property, withdrawing money from the account or using the deceased's car as your own.
Renouncing an inheritance
Renunciation is made in writing before the district court judge at the deceased's last permanent address and is entered in the same special register (Art. 52 of the Inheritance Act). Renunciation cannot be subject to a condition or a time limit, or apply to only part of the estate (Art. 54 of the Inheritance Act). The share of the heir who renounces goes to increase the shares of the other heirs (Art. 53 of the Inheritance Act). That is why, where there are debts, all heirs of the same order usually renounce, followed by the next order as well.
The law sets no general deadline for renunciation. However, any interested party – a creditor, for example – may ask the court to set you a deadline to state whether you accept the estate. If you do not respond within it, you lose the right to accept it (Art. 51 of the Inheritance Act).
Acceptance under inventory (Art. 61 of the Inheritance Act)
Acceptance under inventory (приемане по опис) is the solution when you do not know whether the assets cover the debts. The heir is liable for the obligations only up to the value of the estate received (Art. 60(2) of the Inheritance Act). Acceptance under inventory must be declared in writing before the district court judge within three months of learning that the succession has opened. The judge may extend the deadline by up to three more months (Art. 61(1) of the Inheritance Act). Persons lacking legal capacity accept an inheritance only under inventory (Art. 61(2) of the Inheritance Act) – where there are children among the heirs, seek advice on exactly how to proceed.
From our practice: The most common mistake we see is an heir "sorting things out" – withdrawing money from the deceased's account or selling their car – and months later finding out about an unpaid loan or a guarantee. Those acts already amount to tacit acceptance of the estate, and renunciation is no longer possible. If there is even the slightest doubt about debts, do not dispose of anything until you have checked the liabilities and considered acceptance under inventory.
Inheritance declaration and inheritance tax under the Local Taxes and Fees Act
Every inheritance must be declared to the municipality. The deadline is 6 months from the opening of the succession, i.e. from the date of death (Art. 32(1) of the Local Taxes and Fees Act, ЗМДТ). The declaration is filed with the municipality of the deceased's last place of residence. If they lived abroad, it is filed with the municipality where most of their assets in Bulgaria are located.
It is also useful to know:
- One declaration covers everyone. A declaration filed on time by one heir also benefits the others (Art. 32(5) of the Local Taxes and Fees Act).
- Assets discovered later are declared within one month of learning of them (Art. 32(7) of the Local Taxes and Fees Act).
- Inherited real estate. For inherited property, the property tax declaration is also filed within the deadline under Art. 32 (Art. 14(6) of the Local Taxes and Fees Act).
- Penalty. A declaration that is not filed or is filed late is punishable by a fine. The law sets it at BGN 10 to 500, i.e. EUR 5.11 to 255.65 (Art. 124 of the Local Taxes and Fees Act).
Who pays inheritance tax? The surviving spouse and heirs in the direct line – children, grandchildren, parents – are exempt from tax (Art. 31(2) of the Local Taxes and Fees Act). For brothers, sisters and their children the tax is between 0.4 and 0.8 per cent, and for everyone else between 3.3 and 6.6 per cent. In both cases it is due only on an inherited share exceeding BGN 250,000, about EUR 127,823 at the fixed exchange rate (Art. 36 of the Local Taxes and Fees Act). The exact rate is set by the municipal council. Exemption from tax does not exempt you from the declaration: you need it to obtain a certificate from the municipality, without which the bank will not pay out the money in the accounts.
The deceased's assets: bank accounts, property, cars, company shares and utility accounts
Once the heirs are known, the next step is to establish exactly what the estate includes. Families often do not know about all of the deceased's accounts, properties or companies. That is why we have described in detail, in a separate article, how to trace a deceased person's bank accounts, properties, cars and company shares.
Bank accounts
Money in a deceased person's accounts is paid out to the heirs against a certificate from the municipality confirming that the accounts are listed in the declaration under the Local Taxes and Fees Act and that the tax, if due, has been paid (Art. 41(1) of the Local Taxes and Fees Act). The bank will also ask for the death certificate, the certificate of heirs and identity documents. Each heir receives their own share, unless they have authorised one of them.
Real estate
The heirs become co-owners of the properties by operation of law, without a new notarial deed. To sell, mortgage or partition a property you will need the deceased's title document, the certificate of heirs and a tax assessment. If the property was acquired during the marriage, as a rule half of it already belonged to the surviving spouse before the death – only the deceased's share is inherited. On a sale, the buyer will carry out the same check we describe in our article on legal due diligence before buying property, so prepare the documents in advance.
Cars
The deceased's car is also part of the estate. Re-registering it in the name of one heir or selling it requires agreement among all the heirs, usually by a contract with notarised signatures. Tax and insurance continue to accrue, so do not put off the decision.
Shares in companies
If the deceased was a partner in an OOD (limited liability company) or the sole owner of an EOOD (single-member limited liability company), what happens to the shares depends on the Commerce Act and on the articles of association or memorandum of association respectively. In some cases the heirs become partners; in others they receive only the cash value of the share. In an EOOD, inaction by the heirs can lead to the company being wound up. How shares are transferred and what is entered in the Commercial Register is covered in our article on the transfer of company shares in an OOD.
Electricity, water, heating and gas accounts
Utility bills keep being charged after the account holder's death, so the heir who uses the home must transfer the accounts into their own name. The steps and documents for each company are described in our article on transferring electricity, water and heating accounts after a death.
The deceased's debts and partition between the heirs
Liability for debts
Heirs who have accepted the estate are liable for the deceased's obligations in proportion to their shares (Art. 60(1) of the Inheritance Act). This means that if you have inherited 1/3, you are liable for 1/3 of the debts – and with all your personal assets, unless you accepted under inventory. A writ of execution against the deceased can also be enforced against the heirs' assets, unless they prove that they have renounced the estate or accepted it under inventory (Art. 429(2) of the Civil Procedure Code, ГПК).
Before you decide, check:
- loans and credit cards – through an enquiry with the Central Credit Register at the Bulgarian National Bank (БНБ), which the heirs may request;
- public liabilities to the National Revenue Agency (НАП) and the municipality;
- enforcement cases with private or state enforcement agents;
- guarantees the deceased gave for other people's loans.
Partition of the estate
Until the estate is partitioned, all heirs are co-owners of everything. This often blocks the sale or renovation of properties. Any heir may always request partition, even if the deceased ordered otherwise (Art. 69(1) of the Inheritance Act).
Partition may be:
- Voluntary – the heirs agree on who receives what. For real estate, the agreement is made in writing with notarised signatures and is registered.
- Judicial – where there is no agreement. The claim is brought before the district court at the place where the succession opened (Art. 110 of the Civil Procedure Code). Each heir may ask for their share in kind, and properties that cannot conveniently be divided are put up for public auction (Art. 69(2) of the Inheritance Act).
The first six months: a step-by-step plan
So that you do not miss anything, follow this order:
- The first days: extract of the death certificate and certificate of heirs.
- Within 1 month: search for a will, documents for the assets and checks for debts.
- Within 3 months of learning of the succession: decision on acceptance under inventory or renunciation, if there is a risk of debts.
- Within 6 months of the death: declaration under Art. 32 of the Local Taxes and Fees Act, then the banks and utility accounts.
- No deadline: voluntary or judicial partition.
| Action | Deadline | Legal basis |
|---|---|---|
| Death certificate | within 48 hours of the death | Art. 54 of the Civil Registration Act |
| Acceptance under inventory | 3 months from learning of the succession (+ up to 3 months' extension) | Art. 61 of the Inheritance Act |
| Renunciation or acceptance at the request of an interested party | the deadline set by the court | Art. 51 of the Inheritance Act |
| Inheritance declaration | 6 months from the death | Art. 32 of the Local Taxes and Fees Act |
| Assets discovered later | 1 month from learning of them | Art. 32(7) of the Local Taxes and Fees Act |
| Partition | no deadline | Art. 69 of the Inheritance Act |
Frequently Asked Questions (FAQ)
Where do I get a certificate of heirs?
The certificate of heirs is issued by the municipality, district administration or mayor's office at the deceased's last permanent address. You need an application, an identity document and the fee paid according to the municipality's tariff. If you cannot request it in person, an attorney-in-fact can do so. We explain how this works from abroad in our article on heirs who live outside Bulgaria.
What is the deadline for filing an inheritance declaration?
The declaration under Art. 32 of the Local Taxes and Fees Act is filed within 6 months of the deceased's death. It is filed with the municipality of their last place of residence. A declaration filed on time by one heir also benefits the others. Late filing is punishable by a fine.
Do children and the spouse pay inheritance tax?
No. The surviving spouse and heirs in the direct line – children, grandchildren, parents – are exempt from inheritance tax (Art. 31(2) of the Local Taxes and Fees Act). They must, however, still file the inheritance declaration. Without it, the banks will not pay out the money in the deceased's accounts.
Can I renounce the inheritance if the deceased had debts?
Yes. Renunciation is made in writing before the district court at the deceased's last address and is entered in a special register. Renunciation is possible only if you have not tacitly accepted the estate – for example by disposing of assets. If you are not sure how large the debts are, acceptance under inventory is often the safer option.
What is the deadline for accepting an inheritance under inventory?
Acceptance under inventory must be declared in writing before the district court judge within three months of learning that the succession has opened. The court may extend the deadline by up to three more months (Art. 61 of the Inheritance Act). With acceptance under inventory, the heir is liable for the debts only up to the value of the assets received.
How do I find out what accounts and properties the deceased had?
Heirs are entitled to make enquiries with the banks, the Property Register (a search by the deceased's name is now done through a lawyer), the Ministry of Interior (МВР) for registered vehicles, the Commercial Register and the Central Credit Register. The certificate of heirs is the key document for all of them. You will find a detailed list of the registers and the enquiry procedure in our article on tracing a deceased person's accounts, properties and company shares.
Do I have to transfer the electricity and water accounts straight away?
It is advisable to do so in the first weeks, especially if someone is using the home, because the bills continue to be charged in the deceased's name. The steps for each company are described in our article on electricity, water, heating and gas accounts after a death.
Does a partner inherit if we lived together without being married?
No. Only a spouse in a civil marriage that had not been dissolved at the date of death has inheritance rights by law. A cohabiting partner can receive assets only under a will, and even then without affecting the reserved share of the children and parents.
What happens to the shares of a deceased partner in an OOD?
That depends on the articles of association. They may provide that the heirs become partners, or that they receive only the cash value of the share. In an EOOD, the heirs must state whether they will continue the business. For what is entered in the Commercial Register when the partners change, see our article on the transfer of company shares in an OOD.
Can one heir sell an inherited property without the others?
No. Until the property is partitioned, each heir can sell only their own undivided share. A sale of the whole property without the others does not affect their rights. The solution is voluntary or judicial partition, which any heir may request at any time (Art. 69 of the Inheritance Act).
How can we help you?
Settling an inheritance combines short deadlines, documents from different institutions and decisions that cannot be undone – such as tacitly accepting an estate that carries debts. Early advice saves months of delay and disputes. The information in this article is general and does not replace an analysis of your particular case.
Mechkova & Dimitrova Law Firm handles the whole process: certificates and searches, assessing whether to accept, accept under inventory or renounce, the declaration to the municipality, banks, utility accounts and partition – including for heirs who live abroad. Contact us for a consultation about your inheritance.
