Bulgaria’s government proposes increases in municipal real estate taxes

Bulgaria’s Cabinet approved on November 4 amendments to the Local Taxes and Fees Act that will see municipal taxes on real estate increase over three consecutive years, from 2027 to 2029, the government information service said.

In 2027, the “update” will be 30 per cent, and in 2028 and 2029, 35 per cent each, the statement said.

Buildings, land, improvements and agricultural land will be covered.

In connection with an opinion received from the European Commission, texts related to the taxation of patent tax on the income of legal entities from activities such as catering and entertainment establishments are repealed, since the measure has been defined as state aid, the statement said.

The statement said amendments are aimed at modernising and refining the current regulatory framework, increasing the efficiency of local property taxation, strengthening municipalities’ own revenue and making possible greater financial independence of local self-government.

Rules stemming from documents of the European Union and the Organization for Economic Cooperation and Development are also introduced, the statement said.

In order to reflect the effects of inflation and to strengthen prevention, the amount of fines and property sanctions in the administrative penal provisions is also being updated, the statement said, without giving details.

The legislative amendments are subject to approval by Parliament.

(Photo: Clive Leviev-Sawyer)