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24.10.2008 Tax Valuation of Properties in Bulgaria to Increase in 2009

BULGARIAN PROPERTIES Head Office

The Bulgarian government adopted a tax law package with which it increases the tax valuation of properties by 50 percent in 2009. This measure was undertaken due to the increase of market prices of real estate and the lagging behind of the tax valuations.

The governmentís decision for increasing the tax valuation will lead to the increase of the property tax. The municipalities are the ones to set the size of this tax within certain limits as the government decided next year the taxís maximum size to be 2 promilles as at the moment it is between 1.5 and 3 promilles. Therefore, the highest property tax will amount to 2 thousandths of its valuation.

The minimum and maximum amounts of property taxes for acquisition and for inheritance of properties will be decreased so as to compensate the increase in the tax valuation.

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