# Bulgaria proposes phased property tax assessment increases

> Live situation record from CLSTR: https://clstr.news/situations/bulgarian-property-tax-assessment-proposals
> Updated: 2026-09-29T11:28:02.000Z. Sources: 8. Developments: 4.

Bulgarian political entities and the Ministry of Finance have advanced proposals for a phased increase in property tax assessments to address outdated formulas that fall below market prices. The reform is expected to begin on January 1, 2027, with an initial 30% increase, followed by subsequent annual increases of 25% and 35%, potentially resulting in a total increase of approximately 118% by 2029.

The Ministry of Finance’s plan introduces higher valuations for specific improvements, such as swimming pools, sports courts, luxury flooring, and fences. While the state determines these assessment updates, Silvia Georgieva, Executive Director of the National Association of Municipalities, noted that local municipal councils retain the authority to set the specific tax rates—ranging from 0.1 to 4.5 per mille—to mitigate the impact on citizens.

Experts suggest the changes may influence the real estate market by prompting owners of unused “dark homes” to renovate, rent, or sell. Additionally, the reform will impact transaction costs, as acquisition taxes are calculated based on the higher of the sale price or the tax assessment. In cities like Varna, experts believe the changes may not significantly shift market prices because assessments often remain below real market values. Beyond property taxes, the Ministry of Finance is also considering new taxes on banking profits as a potential market correction for an overheated real estate sector.

## Timeline

### 2026-09-29: Bulgaria to implement phased property tax assessment increases

Bulgaria is planning a phased increase in property tax assessments starting in 2027, alongside potential new taxes on banking profits to address market imbalances and outdated valuation formulas.

2 sources. https://clstr.news/cluster/bulgaria-to-implement-phased-property-tax-assessment-increases

### 2026-09-28: Bulgaria proposes phased increase in property tax assessments through 2029

Bulgaria proposes a phased increase in property tax assessments, targeting a 118% rise by 2029, affecting luxury improvements and multi-property owners.

2 sources. https://clstr.news/cluster/bulgaria-proposes-phased-increase-in-property-tax-assessments-through-2029

### 2026-09-20: Progressive Bulgaria proposes 100% increase in property tax assessments

Progressive Bulgaria proposes increasing property tax assessments by 30% in 2027, with further 35% increases in 2028 and 2029, impacting both annual taxes and real estate transaction costs.

3 sources. https://clstr.news/cluster/progressive-bulgaria-proposes-100-increase-in-property-tax-assessments

### 2026-09-16: Ivan Takov criticizes planned Bulgarian property tax increases

BSP leader Ivan Takov criticizes planned property tax assessment increases in Bulgaria, calling for differentiation between pensioners and investors to ensure social justice.

2 sources. https://clstr.news/cluster/ivan-takov-criticizes-planned-bulgarian-property-tax-increases

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Cite as: Bulgaria proposes phased property tax assessment increases. CLSTR, https://clstr.news/situations/bulgarian-property-tax-assessment-proposals