Bulgaria proposes windfall tax and social relief in 2027 budget plan

Bulgaria budget 2027 windfall tax tax reform food vouchers fiscal policy

The Bulgarian government has unveiled a series of proposed tax reforms and fiscal measures aimed at stabilizing the budget and reducing the deficit to 3% by 2027. A central component of the plan is a 33% windfall tax targeting banks, insurance companies, telecommunications providers, and large food retailers. Deputy Finance Minister Lyudmila Petkova stated that this measure is intended to curb inflation and is expected to generate approximately 1.5 billion euros for the state budget.

To offset these measures and support families, the government proposes expanding social buffers. This includes increasing monthly food vouchers to 200 euros, subject to a 7% tax at the source, and increasing tax relief for families with children. A new tax deduction for child development—covering education, sports, and culture—is also being introduced.

Additionally, the plan includes a phased increase in real estate tax assessments, starting with a 30% rise in 2027 and continuing through 2029. While the government argues these changes promote fiscal fairness, the proposals have faced criticism from the opposition and economic experts. Critics, including representatives from the Bulgarian National Bank, warn that the windfall tax could impact bank liquidity, increase interest rates, and potentially discourage business investment.

Entities

Boyko Borisov · Bulgarian Government · Bulgarian National Bank · Daniela Vezieva · European Court of Justice · Galeb Donev · Lyudmila Petkova · Ministry of Finance · Stefan Belchev

Claims

What the coverage asserts, and how many sources carry each claim.

[● 2 SOURCES] Tax relief for families with one child will increase to 5,000 euros. www.a-specto.bg · fakti.bg
[● 2 SOURCES] A 7% tax will be applied to food vouchers at the source. www.a-specto.bg · fakti.bg
[● 2 SOURCES] Food vouchers will increase to a maximum of 200 euros per month. www.a-specto.bg · fakti.bg
[○ 1 SOURCE] The windfall tax is expected to generate approximately 1.5 billion euros for the budget. www.vesti.bg
[● 3 SOURCES] The government proposes a 33% windfall tax on banks, insurers, telecommunications, and large food retailers. www.a-specto.bg · fakti.bg · www.vesti.bg
[DISPUTED] The government aims to reduce the budget deficit to 3% by 2027. e-79.com · fakti.bg
[● 2 SOURCES] A new tax relief will allow deductions for child development costs, including education and sports, up to 2,000 euros. www.a-specto.bg · fakti.bg
[● 2 SOURCES] Real estate tax assessments are planned to increase by 30% in 2027, with further increases through 2029. e-79.com · fakti.bg