The regional policy committee in parliament has backed, at first reading, a government bill to double the base values used to value property in stages between 2027 and 2029. The bill amends the Local Taxes and Fees Act.
The Council of Ministers approved the changes last Wednesday. On the same day, it decided that banks, insurers and several other sectors will pay a 33% windfall tax for 2027.
What happened before: Cabinet approves higher tax values for property and 33% windfall tax
Deputy finance minister Lyudmila Petkova presented the bill. In 2027 the base rises by 30%, to 1.3 times the current level. In 2028 it rises by another 35%, to 1.65 times, and in 2029 by a further 35%, to 2 times.
The change covers buildings, land plots, outdoor structures and farmland. The new valuation will be the basis for the annual property tax and for the tax on sales, swaps and gifts. It will not be used for the household waste fee.
The rules for valuing swimming pools, open tennis courts, special surfaces and park facilities will be made more precise, and these items will carry more weight in the calculation. For farmland, the value per decare will be recalculated in steps and depends on the category and the type of permanent use. For non-irrigated arable land of category I, it is €125 in 2027, €159 in 2028 and €192 in 2029. For irrigated land, the sums are multiplied by 1.2.
If parliament passes the law, municipalities will have to send out tax notices by 30 April 2027. The 5% discount for paying the whole annual tax early will apply until 31 May 2027.
Municipal budgets are expected to receive about €73.4m more in 2027, €172.1m more in 2028 and €270.8m more in 2029.
Fines and property sanctions will also be updated. Petkova said some have not changed since the law was passed in 2007, and others are even older. She said they no longer deter offenders.
The committee rejected a bill from Dimitar Naydenov and a group of MPs from Democratic Bulgaria. It would have scrapped the annual tourist tax return, which people who offer overnight stays file by 31 January for the previous year. Municipalities would have received the data automatically from the Unified Tourist Information System (ESTI). The finance ministry would have had to give access within 3 days of getting the data from the tourism ministry, either through an automatic link to municipal local tax software or through direct access to ESTI. Municipal councils would have had 3 months to bring their regulations in line. Naydenov said the aim is to cut red tape, so that people stop reporting every year data the authorities already have.
Committee chair Martin Zhlyabinkov of Progressive Bulgaria opened the session with condolences, on his own behalf and on behalf of those present, to the families of those killed in two pile-ups on the Trakia motorway earlier today. In thick fog near the Zimnitsa junction, close to Yambol, 86 vehicles crashed, 12 people died and almost 50 were injured. Zhlyabinkov expressed gratitude to doctors, rescue teams and law enforcement.