On 1 January 2009 amendments to the local taxes and fees act where introduced which might have a significant impact on the taxation of real estate in Bulgaria.
Determination of the tax value of real estates: New criteria for the valuation of real estates (land and buildings) for tax purposes have been adopted.  The tax value of a real estate for the purposes of the real estate transfer tax is determined by the respective municipal tax administration at rates based on the local taxes and fees act and depending on the type of the real estate, its location, space, structure and depreciation.
As the tax value of a real estate is the minimum base on which real estate transfer tax is calculated, the aim of the amendments is to prevent or at least to limit the declaration of a lower price of the transferred real estate in notary deeds by the parties to the transaction in an attempt to minimize the due tax.
The rate of the real estate transfer tax is reduced to 1.3 to 2.6 per cent of the tax value of the transferred real estate. The exact figure of the tax should be determined within the prescribed range by the respective municipality tax authorities, where the real estate is located by 31.01.2009.
Amendments to the annual real estate tax. The minimum tax value of a real estate in order to be subject to the annual real estate tax has been increased from BGN 1680 to BGN 2520. The rate of the annual real estate is decreased to 0.05 to 0.2 per cent of the tax value of the real estate subject to the tax. The exact figure of the tax should be determined within the prescribed range by the respective municipality tax authorities, where the real estate is located by 31.01.2009.
The tax value for the purposes of the annual real estate tax for non-residential real estates owned by companies is their book value, which remains unmodified by the amendments put in place.