Possible increase in property taxes by up to 30% in 2027

A change in the way real estate tax assessments are calculated could lead to a significant increase in the 'buildings' tax, as well as in purchase and sale costs. These forecasts are shared by tax experts and politicians, noting that the potential jump could reach 30%.

According to Yavor Gechev, a deputy from 'Progressive Bulgaria', such changes are envisioned in the 2027 budget, although they do not appear in the current budget. The new methodology would more accurately account for real market prices, location, type, condition of the property, and the year of construction.

Tax consultant Nikolay Ivanchev notes that the current methodology has not been updated for a long time. He points out that it would be reasonable for the increase in assessments to be between 20% and 30%, but warns of serious social consequences. "If you tell a pensioner that you are increasing their property tax by 30%, while their pension has only grown by 7.8%, this will become a major public problem," he emphasized.

Ivanchev adds that due to the high share of homeowners in Bulgaria (over 90%), any change in tax policy is a highly politically sensitive issue. He also expressed skepticism regarding the idea of higher taxes for a second or third home, considering it administratively difficult and with a small financial effect.

Lawyer Deyan Dragiev added that the change in assessments will have a "domino effect" on the real estate market. Higher taxes and transaction fees could make some properties less attractive to buyers, as acquisition and maintenance costs will increase.

For the new system to be implemented in 2027, legislative changes must be prepared as early as the end of 2025 or 2026, with a special working group needing to determine the new coefficients and indicators.