Buy Abroad News

06 Jan 10

Bulgaria Property No Cash Scheme On Hold For Property Buyers

The planned implementation of a law that would prevent cash being used in the purchase or sale of a property has been postponed.

The law which was widely seen as an attempt by the Bulgarian government to stop the large amount of untracked cash floating around the economy, being used to buy property. It is no secret that Bulgaria has suffered from corruption and mafia influence in some areas of the country. Often money received through illegal activities has been converted into property and washed through the system.

According to Justice Minister Margarita Popova. If implemented properly, the scheme would "boost revenue for municipalities, increase the banks’ influence over deals and reduce interest payments on loans," Popova said.

Initially, the measure, outlawing any payment in cash, was due to take effect from the 1st of January 2010, as reported in the newspaper Dnevnik daily.

David Coney a Bulgarian property expert said of the move “clearly there has been some pushback from property owners who are worried that the new legislation would affect the market value of their property and therefore the tax due as and when they sell. Most people still expect the law to come into force in early 2010, but no new date has been forthcoming from the Bulgarian government”.