Sometimes it is positive, sometimes there is also a negative opinion about this specific financial service. In practice, every person could benefit from a different kind of cash allowance, then gradually return his debt to the institution concerned. So this product has become a major way to solve small or more serious financial problems.

With the withdrawal of such a loan, however, you need to be aware of other small and more details concerning the declaration of the relevant funds.

Do you have to declare your credit?

According to the latest legal regulations, any natural person who has received or provided a loan higher than BGN 10,000 is obliged to describe it in his tax return for the respective year. However, according to the rules, there is no need to register the bank loans.

For this purpose, income statements provided by the Agency are required, which require the relevant information and are part of the regular documents to be filled in.

In the calculation of loans received or given by natural persons, amounts that have been registered during the previous 5 years may be considered and outstanding if their total value exceeds BGN 40,000.

There is a difference between a cash loan and a bank loan

It is important to know how legally the two terms are different and how they are viewed in a logical sense.

Cash loan

  • The money existed before signing the contract between the individuals;
  • The corresponding amount was the property of a person, after which someone else became;
  • Their return is required to the same extent as they were provided.

Bank loan

  • In this case, the cash amount in practice does not exist before the contract is signed and actually granted to the person concerned who has applied for it;
  • In fact, this process does not mean that some kind of property is transferred, as we specified the amount did not exist before signing the contract;
  • Here is also the interest the bank office requires. Also by law a sum must be confirmed in writing and in writing.

Often, the question is whether you can get tax relief when a bank loan is available.

There are variants where you can use some relief from your annual obligations to the NRA. Such a situation is, for example, the case where you are a young family. Then you have the right to such a service and especially if you have a mortgage loan on your behalf. You can use the ease of payment for the year by submitting your annual tax return.

To do this, however, you must meet several important conditions

  • You must have marriage;
  • At least one of the spouses must be over 35 on the date of the mortgage loan contract;
  • Mortgaged housing should be the only one for the family during the tax year concerned. It should be clear that when the amount of the mortgage is greater than BGN 100,000, the tax relief can be used for interest payments made during the year on the first 100,000 BGN of the principal;
  • A special document issued by the bank must be attached to the relevant tax return. The amount of the interest payments made during the year must be certified. There must also be a document proving that the other spouse does not use tax relief.

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