Bulgarian landowners who have obtained approval to convert their site for wind, solar and hydro power development will be imposed a property tax, according to proposed changes to the farmland protection law. The proposal, which is yet to be coordinated with ministries, forms part of a package of measures drawn up by the farming and environment ministries to curb renewable energy development in protected areas and fertile land.

Under the current rules, a property tax is only levied on built-up farmland. The new rules are prompted by the soaring number of applications to change land status and make room for clean energy projects, the farming ministry explained. Investors will be required to break ground on their projects within five years from being granted the change in land status. Otherwise the permit will be revoked.

Renewable energy development on farmland without the necessary permit will be punished with a fine of up to BGN 6,000 instead of the current BGN 240 to 1,000.