Plan for a Gradual Increase in Property Tax Assessments

The ruling party announced a plan to gradually raise property tax assessments by a total of one hundred percent. The first stage will begin next year with a 30% increase, followed by two larger steps of 35% in 2028 and 2029, according to a report to BNT by Deputy Stefan Belchev.

According to him, the tax package will include new measures to raise revenues, despite the stated intention that taxes would not be increased. The tax assessments have not been updated since 2007, and there is still no detailed assessment of the impact of the planned increase. It is also unclear whether the rates for the property tax, which municipalities set in a range from 0.1 to 4.5 promille, will be changed.

If the rates remain unchanged, higher assessments will lead to an increase in the due property tax and in the waste collection fee. The change will also affect real estate transactions, since for some of them the tax assessment is used instead of the actual agreed price, on which local tax at the time of property purchase is calculated.

Source: Telenews