100% Taxes

@jeanmandredeix

I'm not worried - having dual nationality is very handy! 😂

The 100% tax on property is only in Spain atm as far as I know. It's aimed at tourists buying 2nd homes and being used as holiday homes, so locals are being priced out.

Those that are already in the country and have Residentency it won't apply to them.

This has yet to be made law, we will see if it is passed as the Prime minister doesn't have the majority in parliament.

I don't think it will be adopted by the whole of the EU, as there are countries that rely on people buying houses and investing.

But am I concerned? No

It's definitely the thin edge of a populist wedge - but that's all the rage these days...

Is anyone concerned about the 100% taxes being brought in in Spain, France and Portugal? This could be concerning if Bulgaria takes this up and the EU is pushing for them to put up taxes in general. - @jeanmandredeix

The PROPOSAL is for non-EU property buyers as a way to stop foreign buyers smashing the local housing market with airB+b places.

I don't see an issue.

Correction I now see it in the news that other countries are thinking about it.

https://www.lbc.co.uk/news/france-greec … rit-expats

Some countries you have to go to the town hall and get approval if you want to buy in their town if you are a 3CN. So can't see it being an issue for them.

It seems less likely to me that Bulgaria would do this, as the country can hardly claim to have a housing shortage. Though I am sure the property price inflation is causing issues for Bulgarians on lower incomes who want to buy a home or apartment, so maybe if it comes in everywhere else, Bulgaria will follow.

It looks like Spain is suggesting a one-off tax at the time of purchase, which would only affect non-resident non-EU citizens, rather than a huge hike in annual taxes. is that correct? Maybe a good reason to buy sooner rather than later, if so, provided you want the property to live in or rent to locals, not as an Air BnB or similar.

It seems less likely to me that Bulgaria would do this, as the country can hardly claim to have a housing shortage. Though I am sure the property price inflation is causing issues for Bulgarians on lower incomes who want to buy a home or apartment, so maybe if it comes in everywhere else, Bulgaria will follow.
It looks like Spain is suggesting a one-off tax at the time of purchase, which would only affect non-resident non-EU citizens, rather than a huge hike in annual taxes. is that correct? Maybe a good reason to buy sooner rather than later, if so, provided you want the property to live in or rent to locals, not as an Air BnB or similar. - @janemulberry

Exactly Jane.

People really need to read between the lines and understand the real problems.

@SimCityAT

Actually I mentioned it only because it is the EU pushing to increase taxes and the government. We just don’t want to jump out of frying pan into fire so we are doing lots of research, not only in Bulgaria, as we must make the right decision.

https://m.novinite.com/articles/229926/ … get+Crisis

@jeanmandredeix

Good discussion question. :-) But seems pretty unlikely to me that any of the countries you mention would actually approve such a proposal and make it law. I certainly can't think of a country that already has such a foreigner property transfer tax. (Maybe Canada? 25% NRST or Non Resident Speculation Tax.)

My interpretation is that it's unlikely to be a tax on ALL foreigners. It's a tax on those who are neither EU citizens NOR non-EU foreigners resident within the EU (or perhaps more narrowly Spain). This means that if you move first (and become a legal resident) the tax would not apply. It's to discourage foreigners who have no intention of being residents and want only a holiday or investment property. As a Brit with PR in Bulgaria, it would probably not apply to me, for example. And it definitely would not apply to me as I already have my Spanish residence permit.

As for Bulgaria, I'm confidently predicting that there's no way they'd do this. And, if they did, all the foreign buyers would follow the local custom of understating the purchase price, so your 50k village house would be sold by the notary for 5k, and you'd pay 5k FPTT, and 45k of cash in a large envelope under the table to the seller. :-) Or, even easier, they'd get their D visa/residence permit first to avoid the FPTT completely.

Other taxes is a different issue. Property taxes and utility bills are rising significantly, and raising the 10% income tax rate might well come under review in the coming years. In any case, we'd still be far cheaper than Spain, France, and Portugal.

If YOU are concerned, you need to pick your country and buy ASAP. :-)

@gwynj

That's my take on it as well.

There are the poorer countries that need investment, i.e Bulgaria.... So I can't see it happening.

Even if they did impose such a tax, it would be pennies compared to Spain and France.

This is very interesting thread to read.

Last year I was going to purchase in BG, and was trying to do it before January 25 because the country was supposed to switch currency to the Euro. Upon learning that, I realised prices would surely increase along with an economic boom.

The deal fell through with problems at home, so was a bit disappointed that I'd lost my chance to get a good deal and move out there to join the better economic conditions.

About 3 weeks ago, I looked into the Euro thing and learned that the Bulgarian government were unable to meet the econmic banking criteria met by the European banks and EU, thus joining the Euro was temporarily suspended.

If they introduce 100% tax they will likely loose a lot of outside investment, I think @jeanmandredeix posts are accurate. It won't happen and if it does, it won't be any time soon.

When BG catches up with Spain as a country, that's when it might be an issue. Until then, the biggest risk in BG, is NATO building the biggest military base in Europe on Romanian soil, pushing the Russia/Ukraine agenda. If WW3 breaks out as a result, everyone loses. But even so, BG has good ties with Russia, Romania and the E.U kinda neutral. I'm praying g trump gets his peace deal and we can all sleep a little easier.

@S25 - Sean

I think they're pretty close on the requirements, so it's probably delayed rather than cancelled. Especially as they've been fixated on this for quite some time. In particular, they've had a Leva/Euro peg for many years, so they are not expecting the dramatic price increases that some EU countries (e.g. Spain) saw. However, being both Euro and Schengen should make Bulgaria more attractive/accessible and perhaps increase demand.

Prices have risen a lot in Bulgaria over the last few years, and some folks are frustrated that it's no longer the land of renovated houses for 10k. I also have my residence permits in Cyprus and Spain and am fortunate to own property there. They've also had plenty of inflation in property and the cost of living, and remain far more expensive than Bulgaria. The cost of owning a property here is extremely low (I.e. property taxes, utility bills), the cost of healthcare is also remarkably low. The general cost of living is very manageable on, say, a UK state pension (i.e. poverty level in the UK). To be honest, I did not have high expectations for Bulgaria, especially as Cyprus and Spain are Mediterranean stars... so I'm shocked how much I like it, and how reluctant I now am to leave it! :-)

@jeanmandredeix

Certainly it's very wise to fully consider all the possible costs and likely issues before making a massive change like moving countries. Tax hikes are likely. Inflation has been significant over the recent years.

Still, I'm finding it hard to imagine that Bulgaria would become more expensive a country to live in than any of the Western European countries. Not impossible, but unlikely.

@janemulberry

Yeah, it will never become somewhere like Switzerland which is just crazy. Majority of people rent because they simply can't afford to buy even with good salaries.