Rental income under the spotlight in Bulgaria
As Bulgaria’s role in the EU rises in profile, the incumbent government has taken a new broom to sweeping out the corruption of the country’s dim past. In an effort to improve their image as well as to maximise on every opportunity in these harsh economic times, new legislation has been seen which will bring increasing order to real estate in Bulgaria, as well as generating increased revenue.
Soon all property deals in the country will be directed through authorised bank accounts under the Notary Act, but in addition to this the government are cracking down on incomes generated through property rental. Under the table deals in buying property in Bulgaria have been costing the economy millions in missed revenue, but any tenants who are renting without a formal contract are now being urged to inform on their landlords as the National Revenue Agency brings pressure to bear.
The stick approach however may create a lowering of rents in favour of cash deals, driving the issue further underground, whereas a carrot approach may see the economy benefit in these dark days.