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According to national broadcaster bTV, citing Bulgaria's tax authorities, more citizens are declaring property rental income. This year, 6 thousand more Bulgarians completed that income section in their 2015 tax returns. In total, 100 thousand citizens earned around 210 million euros from letting property last year.
Although estate agencies' figures differ, investment properties account for close to 20% of transactions on average. Experts link growing investment in rental housing to several years of falling interest rates on bank deposits. In 2015, average deposit interest was 1%, while property returns were estimated at 3-5%.
Given European Central Bank policy, deposit rates are not expected to rise soon. Analysts therefore anticipate a further shift in household savings and increased demand for investment property.
Source: Russian Bulgaria
