The properties in Bulgaria are subject to annual taxation. The owner who is not resident of Bulgaria but owns a property in Bulgaria is necessary to check in the local Municipality about the amount of the property taxes due to the Municipality where the property is located. The municipality is sending an invoice to the address of every owner about the amount of the due property tax till April of the respective year. However, if the owners have no address in Bulgaria, they could not understand about the amount of the annual tax. In this situation we strongly recommend the foreign owners to check every year in the Municipality what is the respective tax and to pay the tax fee for the property till the end of the year.

In case of non-payment of taxes, the municipality has the right to contact a private or public bailiff who starts an executive procedure for collecting the debt, as the debt is being increased by the bailiff`s fees, the legal interest calculating per each day of delay as well as, eventually, by the fee of the municipality's legal council. It is very possible the debtor not even to understand about the executive case as because of not having address in Bulgaria.

However, the bailiff is entitled, if the debtor does not have bank accounts or other assets in Bulgaria, to start a direct execution on the property and even to sell it on a public sale for a very minor purchase price on its tax evaluation.

“Valova and Angelova” law firm