The construction permit taxes in Bulgaria’s capital will increase gradually, Sofia’s chief architect Petar Dikov said.
The process will probably start in the coming year, Dikov said during the first Balkan real estate conference BalRec.
Sofia can accumulate the funds needed for infrastructure development only through tax increase, Dikov said.
Taxes in Belgrade vary between 250 and 430 euro per sq m and are slightly lower in Bucharest. In Sofia, the tax is seven euro per sq m, Dikov said. Yet, a transition period will be needed before higher taxes are introduced.
Once funds for infrastructure development are collected, investors will be freed from the duty to provide some of the infrastructure needed for their projects.