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[BUSINESS] · Bulgaria · 17 sources

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Bulgaria proposes 2027 tax reforms including child relief and excess profits tax

The Bulgarian Ministry of Finance has unveiled a comprehensive package of tax and income measures proposed for 2027. The plan aims to increase budget revenues, reduce the deficit to 3%, and combat the shadow economy.

Key social measures include significant increases in tax relief for families with children. For one child, relief would rise from 6,000 BGN to 5,000 EUR; for two, from 12,000 BGN to 8,000 EUR; and for three or more, from 18,000 BGN to 11,000 EUR. Relief for children with disabilities is proposed to increase from 12,000 BGN to 10,000 EUR. Additionally, a new relief for child development would allow parents to deduct documented expenses for health, education, and sports.

Regarding food vouchers, the Ministry proposes increasing the maximum monthly amount from approximately 102 EUR to 200 EUR, while introducing a 7% final tax at the source. To boost revenue, a temporary excess profits tax is proposed for 2027, targeting sectors such as banking, telecommunications, fast credit companies, and large retail chains.

Furthermore, the government plans to increase property tax assessments by 30% in 2027, with subsequent increases of 35% over the following two years. Deputy Minister Lyudmila Petkova clarified that these changes would affect property taxes but not the waste management fee. The measures require approval from both the Council of Ministers and Parliament.

Entities

Bulgaria · Bulgarian Chamber of Commerce · Bulgarian Chamber of Commerce and Industry · Bulgarian Ministry of Finance · European Stability Mechanism · Ljudmila Petkova · Lyudmila Petkova · Ministry of Finance · National Revenue Agency · Rumen Radev

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