Bulgaria's one-time 33% excess profit tax to also cover smaller businesses

Under a Bulgarian government decision, excess profits of banks, insurance companies, telecommunications companies, short-term lenders, currency exchange offices and chain supermarkets will be taxed at 33% next year, as a one-time measure. According to the government press centre, companies will be exempt from the tax if they keep 30% of their tax liability invested in Bulgaria or held as reserves.

In 2026, all food retailers with sales revenue above 5 million euro will also pay the excess profit tax. The threshold is low enough to cover chain stores in almost all provinces with three to five supermarkets, as well as larger single stores in a medium-sized Bulgarian city.

A package of changes to the tax laws allows employers to provide meal vouchers of up to 200 euro. Vouchers above the 102.26 euro threshold will be taxed at 7%. A special consumption tax will also apply to powerful cars with combustion engines above 250 kW.