Bulgaria introduces new tax reliefs for families with children

Bulgaria is introducing new tax reliefs for families with children, according to Deputy Finance Minister Lyudmila Petkova. The measures include increasing existing unconditional tax reliefs for children and children with disabilities. Under the new plan, the real financial impact for parents will be reflected in their January salaries.

Existing tax reliefs will be increased, with the effective benefit for one child being 500 euros, for two children 1,200 euros, and for three or more children 1,700 euros. These reliefs are unconditional and do not require documentation to prove eligibility, as they are deducted automatically from the annual tax base.

Additionally, a new tax relief for child development is being introduced. This allowance is intended for expenses related to education, sports, upbringing, and essential goods for young children, such as items for infants. The amounts for this development relief are 2,000 euros for one child, 4,000 euros for two children, and 6,000 euros for three or more children. While receipts for these purchases do not need to be submitted with tax declarations, they must be kept for five years for potential inspection.