[size=85:2gd029sl]Investerbg

Bulgarian landlords who fail to declare rental income face 6000 leva fine

Bulgarian landlords who fail to declare their rental income will face a fine of up to 6000 leva fine from the National Revenue Agency (NRA), Investor.bg reported on January 19 2011.

Beginning on January 1 2011, landlords were obliged to send an invoice to the NRA, indicating any rental income they receive. Failure to do so will result in a fine of between 100 and 500 leva a month for every month of omission.

The average rent in Sofia is about 500 leva a month. Through imposing such heavy fines, the NRA is hoping to deter landlords from avoiding declarations.

The NRA has stepped up its war against rogue landlords after it called for the public to remain vigilant and inform the authorities of people who collect rental income but fail to declare it.

It is common in Bulgaria for tenants to rent properties, without a contract from owner, in an under-the-table deal.

The failure to declare rental income in Bulgaria remains a major problem, contributing substantially to the country's so called grey economy.

All rented property should be accompanied by a contract, but in many cases the owners either fail to disclose it, or declare substantially lower rents to pay less taxes. NRA urge the public to inform them, along with a copy of the rental contract and their names – although they "
guarantee full confidentiality"
.