Bulgaria announces major tax reform package — key measures for 2027–2029

Windfall profit tax

A windfall profit tax will be introduced for 2027, targeting banks, insurance and reinsurance companies, food retail chains operating five or more outlets, telecommunications companies, foreign exchange bureaus and quick-loan providers. According to the Ministry of Finance, these sectors account for approximately 60% of excess profits across all economic sectors.

The tax will be calculated against a reference period of 2020 to 2025, taking each company's individual average profit for that period and increasing it by 20% to establish a "normal profit margin". Any profit exceeding this threshold in 2027 will be taxed at 33%. Notably, 90% of the tax due must be paid in advance during 2027 to bolster budget revenues.

Phased increase in property tax assessments

Property tax assessments, which is the basis for calculating real estate tax, will be increased in stages: 30% in 2027, 35% in 2028, and a further 35% in 2029, amounting to a cumulative increase of 100%. The household waste charge will not be affected.

Gambling sector — advertising ban, higher fees, and new reporting obligations

The Ministry proposes the following sweeping changes to the Gambling Act:

• Near-total ban on gambling advertising with an exception only for sports sponsorship (e.g. advertisements on sports facilities and team kits).
• Significant increases in alternative taxes on gaming machines, gaming tables, and other equipment (e.g. the tax on a single gaming machine rises from BGN 800 to EUR 600).
• Introduction of a remote reporting link between gaming systems of gambling operators and the National Revenue Agency (NRA), effective 1 January 2028. (The system is to be built by 30 June 2027 and technical requirements adopted by 31 March 2027).
• Land-based operators and online operators will be taxed similarly from 2028. Taxes will be levied on the difference between wagers placed and winnings paid out, subject to a monthly minimum per machine or table.
• Licence fees are converted from BGN to EUR and substantially increased — a traditional lottery licence rises from BGN 300,000 to EUR 300,000; and an online betting licence increases to EUR 400,000.
• Foreign gambling operators will be required to establish a registered place of business in Bulgaria as a condition for obtaining a licence.
• A portion of licence fees (1% in 2027, 2% from 2028 onwards) may be redirected by operators to licensed Olympic sports federations, professional and amateur football clubs by way of donation and sponsorship. If not donated, the amounts revert to the state budget with statutory interest.

VAT registration threshold

The threshold for mandatory VAT registration will be raised to EUR 75,000. Mandatory VAT registration will also be introduced for taxable supplies involving land and buildings to prevent VAT avoidance.

Other notable measures

• Electronic invoicing for domestic supplies will be introduced from 2028 when the NRA's information platform becomes operational.
• The statutory minimum value threshold for recognising a fixed tangible asset for corporate tax purposes increases from BGN 700 to EUR 1,000.
• The tax loss carry-forward period is extended from five to 10 years, but the deduction is capped at 70% of the financial result in any given year. (The remaining 30% remains subject to corporate tax).
• The annual quota for electronic food vouchers rises to EUR 1.5 billion, with the monthly cap increasing from EUR 102 to EUR 200. A 7% tax on vouchers is introduced, resulting in a net maximum monthly voucher of approximately EUR 186.
• A new excise duty on motor vehicles with engine power exceeding 250 kW is proposed (excluding specialised vehicles such as ambulances and fire engines). Rates are EUR 10,000 plus EUR 10 per kW above 250 for new vehicles and EUR 5,000 plus EUR 8 per kW above 250 for used vehicles.
• The sustainability reporting threshold is raised to enterprises with revenue exceeding EUR 450 million and more than 1,000 employees, reducing the administrative burden on smaller businesses.

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