Bulgaria to expand tax incentives for young families to include EU citizens
Bulgaria’s Government has approved a bill of amendments to the country’s tax laws, which will make nationals from other EU member states eligible for tax breaks given to young families.
Under Bulgarian law, married couples aged under 35 get tax breaks if they are still paying a mortgage for their first home, provided it is the only home they own. Last year, about 5500 households claimed tax benefits under this provision.
The European Commission, however, opened an infringement procedure against Bulgaria, arguing that the law discriminated between Bulgarians and other EU nationals who live in Bulgaria. The amendments seek to rectify the issue, making the tax breaks available to citizens of all EU member states or European Economic Area countries, provided that they pay taxes in Bulgaria and meet the same requirements as their Bulgarian counterparts.
According to Deputy Finance Minister Lyudmila Petkova, the total value of the tax breaks is about 1.5 million leva to two million leva a year. With the expansion to include foreign nationals, the cost to the state Budget is expected to rise to about three million leva, she said.
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