The Bulgarian Government has agreed to a proposal to raise the maximum property tax rate from 0.2% to 0.25% of the property appraisal.

Furthermore, the property transaction tax cap rises from 2.6% to 3%, but this may not entail higher payments as they are set by city councils, which are concerned such a step might drag down collection. In addition, the threshold for properties exempt from taxation will be lowered to a property appraisal of 1680 leva from the current 2520 leva.

The aim is to increase revenue of small municipalities where appraisals are low and many property owners pay no property taxes.