Married, buying a home with a mortgage, and at least one of you under 35? Then the state will give you back part of your income tax — not much, but every year for as long as the conditions are met. The relief has existed for many years, yet some families never use it simply because they don't know about it or don't ask the bank for the certificate in time.
The rules are in Article 22a of Bulgaria's Personal Income Tax Act (ZDDFL). Below: the conditions, the tax authority's position on the grey areas, what it is worth in practice and how to claim it. Verified as of October 2026.
What the relief actually gives you
Mortgage interest paid during the year is deducted from your annual taxable income. You do not get the interest back — you get back the tax on it, i.e. 10% of the eligible interest.
There are two limits:
- only interest on the first €51,129.19 of principal counts (BGN 100,000 before the euro). If the loan is larger, interest on the rest is ignored;
- the deduction cannot exceed the person's annual taxable income under Article 17 ZDDFL — in practice salary, freelance contracts, rent and similar income. Income from business activity as a sole trader cannot be reduced by this relief.
The conditions — all at once
- Civil marriage. The mortgage contract was signed by you and/or your spouse, to whom you are married in a civil marriage. Living together without marriage does not qualify.
- Under 35 on the date of the loan contract. At least one spouse had not turned 35 on the date the loan contract was signed. Age is irrelevant after that — the relief continues once both of you are over 35.
- Only home. The mortgaged home must be the family's only home during the year for which you claim the relief.
- A loan to buy a home. It must be a mortgage taken out to acquire a home — not a renovation loan or a consumer loan.
For any given year only one spouse can claim the relief. If both claim it, each owes the tax on the portion they used (Art. 22a(6)). Because the rate is a flat 10%, it makes no difference which of you claims it; what matters is that the claimant has enough taxable income to absorb the full deduction.
Non-residents who are tax-resident in an EU or EEA country can also use it (Art. 22a(5)).
Grey areas: what the tax authority accepts
Bulgaria's National Revenue Agency (NRA) has answered many questions on Article 22a. Its main positions (opinions from 2010–2016 — in an unusual situation, ask for a current ruling):
- Another home in the family. If anyone in the family owns another home, the relief is not available — even if a third party holds a right of use over it. The same applies to an atelier that in practice serves as a home. More on atelier status in our guide Atelier or apartment.
- Loan signed before the wedding. The NRA accepts the relief for any year in which a civil marriage exists on 31 December. Age is assessed on the date of the loan contract. The spouse does not have to be a co-borrower.
- Divorce. The marriage must still exist on 31 December of the year for which the relief is claimed.
- Refinancing. The relief is not lost if the new loan refinances the original home-purchase loan and the conditions are still met on the refinancing date. Interest corresponding to the original loan is eligible. Whether refinancing pays off at all is covered in our refinancing guide.
- Fit-out and renovation. A loan for finishing works, repairs or improvements does not qualify. Nor does a refinanced consumer loan.
What it is worth in practice
An illustrative example: a €150,000 loan at 2.42% — the average rate on new housing loans in August 2026, according to the Bulgarian National Bank.
- Only interest on the first €51,129.19 counts: roughly 51,129.19 × 2.42% ≈ €1,237 in the first year. In reality slightly less, because the principal falls with every payment.
- Tax returned to you: around €124 a year.
If your loan is below €51,129.19, all the interest counts. The amount shrinks as you repay principal and rises in proportion to a higher rate. It is not a reason to buy a home, but it costs nothing and repeats every year in which the conditions are met. You can model your own scenario with our mortgage calculator.
How to claim it
- Through the annual tax return under Article 50 ZDDFL — deadline 30 April of the following year. For interest paid in 2026, that is the return due by 30 April 2027. The conditions are declared in the return (Art. 22a(4)).
- A certificate from the bank showing the interest paid during the year on the first €51,129.19 of principal. Request it early in the year rather than in the last week of April.
- No public debts in enforcement. On the day you file, you must have no public liabilities subject to enforced collection — otherwise no tax relief of any kind can be used. Check your NRA account with your access code or e-signature before filing.
- Refund. If the relief produces an overpayment, the NRA says it is refunded within one month.
- Documents issued abroad (a marriage certificate, for example) must be legalised and translated.
Other things to keep in mind when buying
- The loan contract date decides the age test. If one of you turns 35 soon, the date you sign the loan contract matters.
- Who owns the home. A home bought during the marriage is, as a rule, marital community property — see our guide Spouses and property.
- An inherited share in another home. The NRA treats ownership of another home by a family member as disqualifying. If you hold an inherited share, clarify it with the NRA or an accountant before counting on the relief.
In short
The young-family relief is not large — at today's rates, roughly a hundred-odd euros a year. But it needs nothing more than the annual return and one certificate from the bank, and it is available every year. The conditions are formal, and so are the ways to lose it: another home, a divorce, a renovation loan instead of a purchase loan.
If you are still choosing a loan, call us or come into the office. We will help you compare the banks' offers and line up the paperwork so the relief is not lost on a technicality. The overall loan process is set out in our guide Mortgage loans in Bulgaria.
Verified as of October 2026 against ZDDFL Article 22a, NRA opinions and BNB interest-rate statistics for August 2026. The example is illustrative. This article is not tax advice — in an unusual situation, consult the NRA or an accountant.
