Bulgarian government rules out tax increases

In uncertain economic times, people across Europe watch for new levies and higher rates. In Bulgaria there was a clear signal on this in September 2025: Prime Minister Rosen Zhelyazkov stated that the government plans neither a tax increase nor higher social-security contributions.

Plain words in Burgas

At a press appearance in the coastal city of Burgas, Zhelyazkov was asked directly about possible increases — a VAT rise in particular. His answer left little room:

"Pay attention to who is making such claims, and consider whether it is not a false report. If the government ever intended to raise taxes or social-security contributions, it would communicate that openly."

He explained that such a step would have to follow a defined process: decisions in cabinet, then public communication, then inclusion in the following year's budget act. None of those steps had happened.

Fiscal discipline instead of higher rates

The prime minister also stressed that the government would maintain fiscal discipline. The stated aim is a balanced budget, but without additional burdens on citizens or companies — a signal aimed as much at investors as at the electorate.

What it means for founders and people moving here

For founders, self-employed people and anyone planning a move, the relevance is planning certainty rather than novelty. Bulgaria has been known for years for its low tax level: corporate and personal income tax both stand at 10 %, among the lowest rates in the European Union, and social contributions are moderate by European standards.

Confirmation that this is not about to change gives founders and remote workers looking for a cost-efficient base a stable frame to plan against.

The limits of a statement like this

It is worth being precise about what a statement of intent is. A prime minister saying a government has no current plans is not a law, and it binds no future budget. Fiscal policy in any country can change with a coalition, a deficit or an external shock, and Bulgaria's euro-area accession brings its own pressures. Treat it as a signal about direction, not as a guarantee you can build a ten-year structure on.

Conclusion

While other European countries discuss increases to close budget gaps, Bulgaria is signalling continuity. For founders, investors and people moving here that keeps the country among the more attractive tax environments in Europe — with the caveat that intentions stated in one September are exactly that.

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For the practical side of setting up here, see company formation in Bulgaria and the provider comparison.

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Source

BTA: PM says government plans no tax hike