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Tax Estimated Price - What is it?

Tax Estimated Price explained

 

Laws and regulations concerning property vary from country to country, one issue that is unique to Bulgaria is the Tax Estimated Price. To help understand this please see below.

In addition to the market price there is also a "tax estimated price" which appears on your title deed and is often less than the actual market value or price paid. Whilst this might sound obscure to the British mind it is actually quite normal in Bulgaria, it is based on an old and out of date system that is due for replacement.


To make a comparison, UK council tax is evaluated according to out-of-date price brackets (i.e Bracket D 68,000 - 88,000 etc) even if your house might be worth 5 times that the figures haven’t kept up with a rising market and as such aren’t representative, but are still used for the purposes of tax calculation. The key difference in Bulgaria is that when a property is sold it is up to the vendor as to how much to state as the tax estimated figure. In some cases it is 100% of the sale price, in others it can be as little as 10%, normally developers of new properties put between 30-50% and independent vendors of villas or land put less. Generally speaking all the tax due on any property is calculated against this price, including VAT at 20%, so the lower the value the lower all your taxes and notary fees will be.


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