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Calculation of the real estate tax assessment: why and how is it done?09/03/21

Calculation of the real estate tax assessment: why and how is it done?

Without a doubt, the real estate sector is one of the most dynamic in our country. It attracts the interest of a number of entrepreneurs both in Bulgaria and around the world, and the procedure for calculating and issuing a tax assessment of the property is key to the implementation of any deal.
The document, known as the property tax assessment, is a mandatory element of the documentation that must be submitted when conducting real estate deals. In the following lines, we summarize everything important that you need to know about the procedure.

Why is a tax assessment necessary?

According to the current legislation in Bulgaria, every property owner is obliged to pay property tax on the real estate owned by him. The tax base is the one on which the owner owes tax. In other words, the tax assessment of the specific property is the document on the basis of which the property tax is charged.
In order to provide data on the property tax due, the need to issue a tax assessment applies to all the real estate. The tax assessment, respectively the tax due, are different for all properties, depending on the type, location, area and some other factors relevant to the property.
When there is a lack of any obligations to the budget for the property, with its quality of the owner, you will get a certificate with which you could easily proceed with the implementation of the property deal.

How is a property tax assessment issued?

There are a few basic things that every property owner should know before proceeding with the tax assessment procedure. Knowing them will save you time and inconvenience caused by omissions.

Where is the tax assessment issued? What are the required documents?

The tax services of the respective municipalities are the competent authorities to which a request for issuance of an assessment is submitted and from which such an assessment is received. In order to do that, the following set of documents needs to be submitted:

  •       Notary deed for the property - copy and original (for reference);
  •       Certificate for inheritors (in case the property is acquired as an inheritance);
  •       An application for issuance of a property tax assessment - can be provided on the spot at the relevant office or to be filled in advance and submitted during your physical visit to the office;
  •       Other documents needed to clarify the tax assessment of the property (upon request).

Who can apply for a tax assessment?

This right is guaranteed to the property owner, his authorized representative and / or inheritor of the property. To establish the legality of the request, the following checks are made, depending on who requires tax assessment to be issued:

  •       If it is the owner - a check is made for lack of tax liabilities;
  •       If it is an authorized person - a check is made whether the same has representative power;
  •       If it is an inheritor - the person should present an identity document and attach a certificate of inheritors.

Who can get the tax assessment?

The tax assessment document is provided to the owner and / or to the person authorized by him, the inheritor. When the ownership of the property is distributed among several persons, the tax assessment can be obtained from only one of them.

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