The Bulgarian government is examining the introduction of a progressive property tax system that would differentiate between a primary residence and additional homes, with second and third properties taxed at higher rates.
The proposal was outlined following a cabinet meeting with the National Association of Municipalities in Bulgaria, with Prime Minister Rumen Radev indicating that the concept is still under discussion. Under the suggested model, a person’s first home would continue to be taxed at a standard rate, while each additional property would be subject to progressively higher taxation.
A key challenge identified by the government is the absence of a unified system that tracks property ownership across different municipalities. At present, local administrations do not have access to comprehensive data showing whether a taxpayer’s declared property is their first, second, or third residence.
“When an owner pays taxes for homes in different municipalities, these administrations do not know whether this is a first, second, third home, etc.,” Radev explained, emphasizing that the lack of information exchange between municipalities makes implementation difficult.
To address this issue, the government is considering the creation of a centralized digital database that would link property ownership records across the country. Officials believe such a system could provide the necessary transparency to distinguish between primary and secondary residences for taxation purposes.
