Municipalities Across Bulgaria Raise Local Taxes and Fees

Municipalities across Bulgaria have initiated increases in local taxes and fees, with several municipal councils incorporating changes to the Ordinance on determining the amount of local taxes into their meeting agendas. Dobrich's municipal councilors were the first to act, approving hikes in property and car taxes, as well as fees for taxi transport licenses within the municipality.

Under the Law on Local Taxes and Fees, municipal councils are responsible for setting the levels of local taxes through ordinances, following the guidelines and limits established by the law. For instance, the real estate tax rate in Dobrich is set to rise from 1.3 per thousand to 2.5 per thousand based on the property's tax assessment. This increase translates to an additional 22.82 leva for a 500 sq.m property, 13.73 leva for a one-story dwelling with a built-up area of 100 sq.m, and 11.41 leva for properties in the third zone, with lesser increases for other zones. Car taxes will also see an increase, though only for higher-powered vehicles.

In Kazanlak, starting next year, local taxes will rise primarily affecting owners of vehicles, vessels, or aircraft, as well as those in the service industry, including restaurateurs, hoteliers, and taxi drivers. The most significant increases will apply to the tourist and patent taxes. Proposed amendments in Kazanlak also include changes to real estate, inheritance taxes, and property acquisition taxes by donation and sale, with the real estate tax rate increasing from 1.5 per thousand to 2.5 per thousand.

Nova Zagora's Municipality has released changes to its Ordinance on determining local taxes for public discussion. The current residential property tax of 3.8 per thousand will be increased to 4.5 per thousand, while non...