Finance Ministry proposes 33% windfall tax on banks and major businesses

Bulgaria’s Finance Ministry is proposing a 33% tax on windfall profits made by banks, payday lenders, insurers, telecom companies and retail chains from 2027, Deputy Finance Minister Lyudmila Petkova said. The tax would be paid in advance.

The threshold for mandatory VAT registration would also rise to €75,000.

The windfall tax is intended to bring additional revenue into the budget and partly offset the cost of higher tax relief for families with children. From 2027, parents with one child would be able to deduct €5,000 from their taxable income, rising to €8,000 for two children and €11,000 for three or more.

Editor: Miglena Ivanova