New Real Estate Taxes to Double Sales in Bulgaria

The sale of real estate in Bulgaria is expected to double after the government approves the new property tax evaluation. The increase in taxes is expected to be between 20 and 100 per cent. Pleven administrators said that the announcement of tax increases led to large increase in the number of sold property, as well as to higher demand. The number of transactions is expected to double by the end of the year. For the first nine months of the year, a total of 3400 apartments have been sold. Experts predict that by the end of 2005 the number of sales will surpass the one for 2004. During the past year, a total of 4446 apartments were sold.

Experts also said that the number of property donations has also increased. For the first nine months of 2005 640 donations were made. The number for 2004 is 640. The reason for such developments is also the expected tax increase and people prefer to pass their property to relatives or people they know well.

The legal mortgages for the same period are 294. experts also registered an increase in the number of renting contracts. By September, the number of signed rent contracts totalled 1635, Dnevnik newspaper reported.

Source: The Sofia Echo