Bulgaria may ban cash payments in property transactionsРубрика: Property news Източник: Dnevnik
A strict non-cash payment rule may apply to domestic property transaction if the idea sponsored by Bulgaria's parliamentary anti-corruption takes off.
The proposal is part of a package of legislative initiatives aimed at limiting cash payments to 10,000 levs or their foreign currency equivalent.
The project also envisages the creation of a financial police to supervise the enforcement of the new rules.
According to commission chairman Boiko Velikov, the idea is to crack down on organised crime which favors cash payments.
To prevent the breaking up of the deal price into several cash installments, multiple payments on a single transaction exceeding 10,000 levs in total will be outlawed.
The main reason for the mandatory bank settlement of property deal payments is to discourage tax evasion. Most properties are declared for taxation purposes below their market value.
Some 600,000 property transactions were concluded here in 2006, said Dimitar Tanev, chairman of the Notary Chamber.
The proposals are backed by most of the employer organisations. The Confederation of Employers and Industrialists in Bulgaria said the enforcement of regulatory restrictions on cash payments will be a boost for legitimate businesses.(Dnevnik)