On 11 September 2026, MP Stefan Belchev of Progressive Bulgaria set out how the long-awaited update to property tax valuations will work: 30% in 2027, followed by 35% in each of 2028 and 2029. The line that made the headlines was "100% in total by the end of 2029".
This is the first concrete detail on a subject we covered in July in Bulgaria is rewriting how property is valued for tax from 2027. At the time, the figure discussed publicly was a total increase of 20–30%. The numbers have moved, and what follows updates that earlier estimate.
Everything below is verified as of September 2026. None of it is law yet — the tax package for the 2027 budget is still to come.
| Year | Step | A €60,000 valuation becomes |
|---|---|---|
| 2027 | +30% | €78,000 |
| 2028 | +35% | €105,300 |
| 2029 | +35% | €142,155 |
Three consecutive increases do not add up — they multiply, because each one is applied to the already increased figure:
1.30 × 1.35 × 1.35 = 2.369
That is an increase of roughly 137%, not 100% (our calculation; the same arithmetic has been pointed out publicly by municipal councillors). The gap is not trivial: on a €60,000 valuation, "100%" means €120,000, while the actual compounding gives €142,155.
A note on the sources. Some outlets reported the first step as 20% rather than 30%. On 20%, the arithmetic is 1.20 × 1.35 × 1.35 = 2.187, or about 118.7%. Belchev's direct quote, however, is 30%. Until draft legislation is tabled, the first step remains an open question, so both versions are worth keeping in view:
| First step | Total change | €60,000 valuation ends at |
|---|---|---|
| 30% + 35% + 35% | ≈ +137% | €142,155 |
| 20% + 35% + 35% | ≈ +118.7% | €131,220 |
The last real update of the base valuations was in 2007, when they were raised by 20%. Nothing since — while housing prices in the larger cities moved in an entirely different direction.
Commentators estimate that the tax valuation of an ordinary flat in Sofia, Plovdiv, Varna or Burgas today covers between 20% and 30% of its market value. These are expert estimates rather than official statistics, but the order of magnitude matches what we see in practice.
Which leads to a conclusion that rarely makes the headlines: even after all three steps, valuations will not catch up with the market in the big cities. A valuation covering 25% of market value, multiplied by 2.369, covers about 59%. The increase is large as a percentage and still behind in absolute terms.
The annual property tax is the product of two numbers — the tax valuation and a rate in per mille that the municipal council sets within a range of 0.1 to 4.5. For a main residence, the base is halved.
So a higher valuation does not automatically mean a higher bill. If the valuation doubles and the council halves the rate, the owner pays the same. Whether that happens is a political decision taken by 265 municipal councils, not a technical consequence of the reform.
How both charges are calculated, who owes them and what discounts apply is set out in our guide Property tax and the waste fee.
The calendar is tight. Amendments to municipal tax ordinances must be adopted before the end of the calendar year, and drafts have to be published at least a month before they reach committee. In practice the decisions are taken in October and November — a good period to keep an eye on your municipality's website.
This is where the annual tax and the one-off transfer cost part company.
Acquisition tax is charged on the higher of two figures — the agreed price or the tax valuation (Article 46(2)(1) of the Local Taxes and Fees Act). The rate is set by the municipal council within a range of 0.1–3%; in Sofia it is 3%. The registry fee (0.1%) and the notary fee are calculated on the same base.
When does this start to matter? When the valuation catches up with the price.
You can work out the notary and registry fees on your own transaction with our notary fee calculator.
Gifts and inheritance have no alternative base — they are taxed on the tax valuation alone. Every increase feeds straight through.
Transfers between spouses and between direct-line relatives remain exempt from gift tax, and a surviving spouse and direct-line heirs owe no inheritance tax. Outside that circle — between siblings, to nephews and nieces, to third parties — the tax is calculated on the valuation at a rate set by the municipal council. The notary fee follows the valuation too.
In other words: if a transfer outside the direct line is coming up in the family, 2026 is the cheaper year of the next four.
The percentages have been announced; the mechanics have not. At least four questions remain open:
The tax valuation is part of the paperwork on every transaction rather than a separate service — we obtain it and reconcile it with the agreed price before costs are discussed at all. For sellers that means a clear figure for what remains after every charge; for buyers, a calculation of transfer costs made in advance rather than after the fact.
If you own a property and want to know what changes for you, or you are planning a transfer within the family, call us or drop into the office. We will look at the specific property and the specific numbers rather than the averages.
Sources: statement by MP Stefan Belchev (Progressive Bulgaria) quoted by Actualno.com on 14 September 2026; round-ups by Paragraf.bg and Dnevnik.bg of 11 September 2026; the Local Taxes and Fees Act. Verified September 2026. No legislative text has been tabled and the figures may change.
