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

Introducing the euro in Bulgaria 

With the formal decision of the Council of the European Union from 8 July 2025 on Bulgaria's accession to the euro area, our country was officially admitted to the monetary union with effect from 1 January 2026 at the irrevocably fixed conversion rate of 1 EUR to 1.95583 BGN. The introduction of the euro will affect the tax and payroll area.

Implementing Standard Audit File for Tax (SAF-T) 

Bulgaria’s National Revenue Agency (NRA) is implementing Standard Audit File for Tax (SAF-T) reporting under the EU-funded REFORM/SC2022/050 project. The system will become mandatory for large enterprises from January 1, 2026, with a five-year phased rollout.

Tax relief / deduction changes for individuals and payroll‐deduced items

For tax year 2025, new tax incentives apply: e.g., one parent may reduce their annual taxable income by BGN 6,000 for one child (and higher amounts for more children). Also, there’s a recent call by the Confederation of Independent Trade Unions in Bulgaria (CITUB) to revise the tax model to increase tax relief for working families with children.

Minimum wage increase

As of 1 January 2025, the national monthly minimum wage in Bulgaria was raised to BGN 1,077 (from BGN 933 in 2024). A draft decree was opened for public consultation in August 2025 proposing to set the minimum wage at BGN 1,213 from 1 January 2026.

Adjustment of social security contribution bases / insurance income caps

From 1 April 2025, the maximum monthly insurance base for social security contributions (for individuals working under employment contracts, etc.) was increased from BGN 3,750 to BGN 4,130. Changes in the Social Security Code came into effect from 1 July 2025 (parents who enter additional employment contracts can lose entitlement to full compensation under certain leave benefits).