Tax and payroll news in Bulgaria for the first quarter of 2025

National Top-Up Tax
A national top-up tax targets multinational and large domestic groups with consolidated revenues over 750 million euros in the past two years. If not met, the Global Minimum Tax may apply, with a maximum rate of 15% on profits.

VAT Changes
The reduced VAT rate of 9% continues but only applies to specific goods and services, including hotel services, books, and baby items. The reduced VAT rate for restaurants and bread sales, introduced as an anti-COVID measure, is no longer valid.

Minimum Wage Increase
From January 1, 2025, the gross minimum wage rises 15,4% to BGN 1,077 (€551). This adjustment is part of the government's ongoing efforts to improve living standards for workers and align with broader EU labor policies.

Social Security Income Cap
The maximum insurable income rises from BGN 3,750 to BGN 4,130, affecting higher earners’ social security contributions.

Projected Wage Growth
Wages are expected to grow by 9,1% in 2025, with slower increases in future years: 5% in 2026, 4% in 2027, and 3,5% in 2028.

Night Work Compensation
Starting January 1, 2025, night shift compensation increases from BGN 1,40 to BGN 1,62 per hour for work between 10:00 PM and 6:00 AM.

These updates reflect Bulgaria's ongoing efforts to improve its tax framework and support its workforce. As the country moves forward with these changes, the focus remains on economic growth, fair labor practices, and aligning with EU standards.