Bulgaria's Local Tax Burden Reaches Record High

The local tax burden in Bulgaria hit a historic peak, with the tax index climbing to 56.5 points on a 0‑100 scale. In 2026, municipalities introduced 128 tax‑rate increases, raising the index in 86 jurisdictions, while only 44 saw declines. The steepest pressures are in tourist hubs such as Pomorie, Tsarevo and Pavel Banya, where the index approaches 80 points, whereas smaller locales like Medkovets and Kaloyanovo remain near the legal minimum.

The Institute for Market Economy (IPE) tracks four main local taxes – property tax, tax on compensated acquisition of property, vehicle tax and retail trade patent tax – and notes that despite 66 rate reductions, the overall upward trend persists. A frozen tax base amid rising wages, prices and profits intensifies fiscal strain on municipal budgets, prompting officials to rely heavily on tax adjustments as a primary revenue tool.