Tax Valuation of Properties Increases by 50 Percent
The tax valuation of properties in Bulgaria is to increase by 50 percent in 2009. This is what the changes in the Law on Local Taxes and Fees proposed by the Ministry of Finance and adopted on second reading in the Parliament stipulate.
What are to be corrected are the location coefficients which have the greatest weight in defining the tax valuation. What is taken into consideration is the location of the property – by category and zone, whether the property is within construction limits or outside them, whether it is in a holiday home zone and for industrial and farming properties – whether they are in an advantageous or disadvantageous position regarding the infrastructure.
The increase in the valuation is done due to the increase in market prices of real estate and the lagging behind of the tax valuations. Meanwhile, property tax promilles will decrease and for the next year they are offered to be between 1 and 2 promilles (currently they are between 1.5 and 3 promilles). This means that the highest property tax will amount to 2 thousandths of its valuation. This way despite of the increase in the tax valuation the end sum property owners pay will not change, the Ministry of Finance claim.
If you have any questions please contact us
Read more news