Real estate transactions in Bulgaria to be exempt from VAT

The Association of Real Estate Brokers suggests that the property transactions in Bulgaria to be completely exempt from VAT.

This is one of the ideas for increase of the revenue in the coffers, which are presented before the National Revenue Agency.

Currently, the tax is not levied on the price of selling land or building (if not new), but the commission for mediation in the transaction is not exempt from VAT, comment from the Association of Real Estate Brokers.

Another step to illuminate the incomes of realtors is the introduction of tax breaks for their clients.

The reduction of the charge for the transfer of real estate is the third proposal on the Association of Real Estate Brokers to increase revenue to the State Treasury.

The idea is the local tax on transfer of immovable property to be charged on the tax assessment, and not as it is at the moment on the higher of the tax or the agreed price.

According to the brokers, in this way, the seller will have to indicate in the contract the higher price, which would legalize their income. Interest will have and the buyer, in case of cancellation of the deal, would be able to claim for the return of the real amount which is paid.

Another plus of the idea is that the introduction of the new rule will help to create an authoritative index of property prices. In this way, the NRA will be able to use those in the land registry prices, instead of making inquiries to the assessors and agencies for each separate check/revision of physical or legal person, comment from the Association.