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SOFIA, November 12, 2025 – The Bulgarian Parliament this week adopted the draft state budget for 2026 in its first reading. This news became the topic of the month, as the 2026 budget is not just a financial plan, but a historic document: it is the country's last budget denominated in Bulgarian levs. It lays the foundation for the country's life in the first year after joining the Eurozone.
The budget focuses on two key goals: raising the population's living standards and ensuring the macroeconomic stability needed for a smooth transition to the euro on January 1, 2026.
What does this mean for the residents of Bulgaria?
The main news for the population is a significant increase in income, designed to mitigate inflationary pressure and prepare citizens for the transition to the new currency. This is beneficial for citizens.
- Minimum Wage Increase: From January 1, 2026, the minimum wage will be increased from BGN 933 to BGN 1080 (about €552). This is the most substantial single increase in recent years and will affect hundreds of thousands of workers.
- Pension Growth: A planned pension indexation is provided, which, according to government assurances, will outpace projected inflation.
- Support for Social Sectors: Expenditures on healthcare and education have been increased, which should lead to salary growth for teachers and medical staff.
What does this mean for businesses and real estate buyers?
For investors, including those planning to buy real estate, the 2026 budget sends a clear signal of stability.
Tax Predictability:
The government has kept key tax rates unchanged. The corporate tax (10%) and VAT (20%) remain among the lowest in the EU, which is a key factor in attracting investment.
Deficit Control:
The budget deficit is planned to be within 3% of GDP. This strict adherence to the Maastricht criteria is a crucial signal to Brussels and international investors, confirming that the transition to the euro is on track.
Why is this important right now?
The adoption of this budget is the final "green light" on the path to the euro. By increasing the population's income, the government is stimulating domestic demand, including in the real estate market. At the same time, by maintaining fiscal discipline, it assures investors that their assets, bought in levs, will be reliably converted into euros without economic shocks.
