Local Taxes in Bulgaria and Important Information You Should Know


Every owner of a property in Bulgaria has obligation to pay council /local/taxes to the municipality where the property is situated. The obligation for payment of the council taxes is stipulated at the Local Taxes and Fees Act of Bulgaria, which states that every owner of a property is obliged to submit a property declaration at the municipality and to declare the newly acquired property within 2 months from purchasing a property.

There are many cases when this has not been done because the owners did not know or were not represented and advised properly and this has led to a non-fulfillment of a legal obligation. The way of collection of the due council taxes on behalf of the municipalities is initiation of a case with Bailiff and recently these are the most common cases.

The owners are unpleasantly informed that the amount of the local/council/ taxes is significant and in some cases there are penalty acts imposed which are additionally increasing the amount of the local taxes. Of course there is a difference between the taxes paid by the companies and the physical persons and in connection with this the penalties acts imposed on the companies usuallyare for significant amounts, since the companies are paying higher taxes than the physical persons. The process of collection of the council taxes through a Bailiff is an expensive procedure and it is always paid by the debtor – by the property owner.

The taxes involved with the Bailiff are not only the local taxes due but also the Bailiff fees related with the collection of due amounts for council taxes. The Bailiff if instructed by the municipality has the right to put an injunction over the property and also to put it on public auction/sale/. If this is the case this could be worst scenario for every property owner as this may lead to loosing of the property.

If you do not know what is your current situation related with the local taxes, please contact us and we can find out what is your current status related with the council taxes and if you have unpaid liabilities we can assist you in their payment.