SOFIA, June 13, 2025 — The Sofia Municipal Council has approved a significant update to its construction-related fee structure, including building permits, in a move expected to generate an additional BGN 30 million annually for the capital’s budget.
The proposal, initiated by the civic group Spasi Sofia, passed with broad cross-party support during Thursday’s council session.
Advocates say the measure corrects a long-standing imbalance and aligns fees with the actual costs of technical services, many of which have remained unchanged for nearly two decades.
Boris Bonev, founder of Spasi Sofia and municipal councilor, said the update reflects a long-overdue effort to modernize and fairly price the technical services provided by the city.
“For too long, Sofia’s residents have subsidized the costs of rapid construction and development. This reform brings fairness and financial sustainability,” Bonev told reporters after the vote.
Architect and fellow councilor Rositsa Nikolova, also from Spasi Sofia, highlighted that the previous fee schedule had not been revised since 2006, despite substantial increases in labor, energy, and digitalization costs.
“We are simply catching up with reality,” she said. “This new model reflects a 98.6% inflation adjustment from 2007 to 2025 and introduces charges for services that were previously free.”
Under the revised fee structure, building permit costs will now range from BGN 7.50 to BGN 27.50 depending on the type and scale of the project.
The fee schedule also includes new charges for specific technical services, part of a broader effort to ensure that developers shoulder a fairer share of urban development costs.
“This ends the era of silent bonuses for construction investors,” said Nikolova. “We are now asking them to contribute proportionately to the urban environment from which they profit.”
The revenue generated through the new fees will be reinvested in city infrastructure, particularly in underserved neighborhoods.
Many parts of Sofia, especially on the outskirts, have long struggled with poor roads, inadequate public services, and underfunded community facilities — problems that often worsen as development accelerates without parallel investment in support systems.
Support for the fee increase was strong across political lines, a rare show of unity in the often-divided council chambers. Critics of the measure were few, though some expressed concerns about potential effects on housing affordability.
Bonev countered that the fee changes would have a minimal impact on overall housing prices but could significantly improve living conditions in the long run.
“This is not just about raising money,” he said. “It’s about setting a standard for what kind of city we want to live in — one where the cost of development includes responsibility to the community.”
The new fees will come into effect later this year, giving developers and planning offices time to adjust to the revised requirements.
Meanwhile, city officials have promised transparency in how the funds are allocated, with a focus on improving roads, utilities, and digital infrastructure in fast-growing areas of Sofia.