Bulgaria 2027 budget plan and tax changes explained

Bulgaria’s government plans to cut the budget deficit to 4.3% of GDP in 2027, raise the VAT registration threshold to €60,000, double the tax-free food voucher cap to €200 a month and raise property tax valuations by 30%. Nothing is law yet: these are draft measures that parliament still has to vote on (BTA).

Under the Public Finance Act the budget bill was due in parliament by 31 October, but it was not submitted; Prime Minister Rumen Radev said it would come the week after the 1 November presidential runoff, Varna24 reports.

What is in the 2027 budget plan?

On 15 October Bulgaria sent its first draft budgetary plan as a euro-area member to the European Commission and the Eurogroup. According to BTA, it targets a deficit of 4.3% in 2027, down from about 5% expected in 2026, with pensions up about 8% and public-sector wages up 5%. A one-off tax on excess profits should bring in about €800 million, BTA writes. On 23 October the tripartite council of government, unions and employers backed the draft changes to eight tax laws, with reservations.

What changes for households?

• Food vouchers: the monthly cap rises from €102.26 to €200, with a new 7% final tax. Novinite reports that an employee would keep up to €186 of a €200 voucher, but BTA’s report suggests only the part above €102.26 may be taxed, so check the final law. The CITUB union has reservations about the tax, and Podkrepa wants it replaced with a social contribution.
• Children: Novinite reports that the annual relief for one child rises to €5,000, plus a new deduction for health, education and sports costs.
• Contributions: the maximum insurable income goes from €2,300 to €2,400 a month, BTA says. See also the 2027 minimum wage proposal.

What changes for landlords and property owners?

Property tax valuations would rise 30% in 2027, 35% in 2028 and 35% in 2029, according to Lexology and Novinite; the household waste fee is not affected. Selling new buildings, land and building rights would require mandatory VAT registration, worth about €120 million, RegFollower reports.

Does restaurant VAT go up?

No, not in 2027. Some summaries of the plan list the “elimination of the 9% rate”, but according to PwC restaurants and catering have paid 20% VAT since 1 January 2025, and in April 2026 the caretaker government refused to bring back 9% (Economic.bg). Check the final bill text.

What changes for businesses and investors?

• A one-off 33% windfall tax in 2027 for banks, insurers, large food retailers, telecoms, exchange offices and non-bank lenders, based on average 2020–2025 profits; up to 30% can be refunded for investment (RegFollower).
• New excise on cars over 250 kW, higher tobacco excise, and higher gambling taxes with a near-ban on gambling ads except sports sponsorship.
• A higher VAT threshold means fewer small firms and freelancers must register: read freelancing tax in Bulgaria.

What it means for Varna

• Restaurants: no VAT change is planned, so the VAT part of menu prices should stay the same; compare today’s eating out prices in Varna.
• Apartment owners: Varna charges 0.2% of the tax valuation (municipal ordinance). For example, a flat with a tax valuation of €40,000 pays €80 a year now and about €104 after a 30% rise.
• New-builds: buyers of new flats should ask whether VAT is included; see buying property in Varna.

Update: why is the budget bill late?

As of 1 November 2026 the bill has not been submitted. Under the Public Finance Act (art. 79(4)) the Council of Ministers had to table it in parliament by 31 October. Prime Minister Rumen Radev said it would be submitted the week after the 1 November presidential runoff and gave no reason for the delay, Varna24 reports. On 29 October Deputy Prime Minister Atanas Pekanov said the draft would likely be presented next week if talks with the European Commission have been concluded, according to BTA. The Finance Ministry is in daily contact with Brussels under the excessive deficit procedure opened against Bulgaria in July 2026; the Commission’s assessment of the draft budgetary plan sent on 15 October is expected on 24 November, in its autumn package. Until the bill is published, every figure on this page is a draft proposal.

4.3% or 4.2%? On 22 October the chair of parliament’s budget committee, Konstantin Prodanov, told BNT that the deficit would be 3–3.5% of GDP on a cash basis and 4.2% on an accrual basis, dir.bg reports. The 4.3% on this page is the 2027 target in the draft budgetary plan sent to the Commission (BTA). A cash-basis deficit counts money when it is actually paid or received; an accrual-basis deficit counts revenue and spending in the period they relate to. The figures come from different documents and were given at different times, so we show both and do not replace one with the other. Prodanov also said consumer taxes, including VAT, would not rise, that the windfall tax would cover 6 sectors and that cuts would save about €600 million.