Bulgaria’s Draft Budgetary Plan for 2027 proposes a one-off windfall profits tax, tighter VAT registration rules for real estate, higher excise duties and increased social security contribution thresholds, alongside targeted personal income tax reliefs.
Bulgaria submitted its Draft Budgetary Plan for 2027 to the European Commission and the Eurogroup on 15 October 2026. Proposed tax measures include a 33% windfall profits tax for companies in certain sectors, personal income tax relief, mandatory VAT registration for taxable persons in the real estate sector, and excise duty amendments.
The measures require legislative approval and will be implemented through the 2027 State Budget Act and amendments to tax laws.
Corporate income tax: Windfall profits tax
Bulgaria proposes a one-off 33% windfall profits tax for 2027 on banks, insurers, large food retailers, telecommunications providers, currency exchange offices and non-bank financial companies. The tax is based on average annual taxable profits for 2020–2025 and payable through monthly advance payments. Up to 30% of the tax may be refunded for meeting regulatory capital requirements or investing in fixed assets used in core business operations.
Value added tax (VAT) & goods taxes
- Restoration of standard 20% VAT rate: The reduced 9% VAT rate previously granted to restaurant and catering services was eliminated, restoring the standard 20% rate.
- Real estate VAT registration loophole closed: Mandatory VAT registration is introduced for entities conducting taxable transactions involving new buildings, land, or building rights within a calendar year, preventing schemes where properties were transferred just before reaching standard registration thresholds (expected yield: EUR 120 million).
- General VAT threshold: The general threshold for mandatory VAT registration is increased to lower administrative burdens on smaller businesses.
- Luxury vehicle excise duty: A new excise duty applies to the initial registration or import of new and used luxury passenger vehicles with engine output exceeding 250 kW.
- Tobacco excise calendar: Tobacco excise duty rate increases are implemented under an accelerated excise calendar (taking effect in August 2026, March 2027, and January 2028), generating EUR 220.2 million in 2027.
- Temporary energy excise reliefs: A temporary zero excise rate (exemption) was granted for LPG and natural gas between October and December 2026, along with gas oil excise reimbursements for agricultural producers.
Gambling taxes & fees
The 2027 budget increases alternative tax rates for slot machines and casinos (effective 1 January 2027), raises fees for socially responsible behaviour, introduces state licensing fees on gambling equipment manufacturing/import, and imposes a minimum monthly variable fee threshold of EUR 100,000 for online operators.
Interim state dividends
The state-owned enterprises must pay dividends to the budget, including a 50% interim dividend based on mid-year 2027 financial statements.
Personal income tax & social security adjustments
- Electronic food vouchers: The maximum tax-exempt monthly value of electronic food vouchers per employee increases from BGN 200 (EUR 102.26) to EUR 200, accompanied by modifications to income taxation.
- Insurable income thresholds: Bulgaria plans to increase the maximum monthly insurable income from EUR 2,300 to EUR 2,400 from 1 January 2027, generating an estimated EUR 265.1 million in additional social security contributions. Minimum insurable income thresholds for certain economic activities and occupations will also rise, contributing a further EUR 196.7 million.
- Child tax reliefs: Increases in existing child tax reliefs (including higher support for children with disabilities) and the creation of a new tax relief for child health, education, and sports expenses.
