Summary
- Bulgaria’s Draft Budgetary Plan for 2027, submitted on 15 October 2026, proposes mandatory VAT registration for persons established in Bulgaria making taxable supplies of new buildings, attached land, rights in rem, regulated plots or building rights.
- The measure targets VAT avoidance on property sales made shortly before registration and is expected to raise around EUR 120 million.
- The general VAT registration threshold would rise from EUR 51,130 to EUR 75,000; the measures still require legislation to be adopted by the National Assembly.
Extended article
The plan is Bulgaria’s first as a euro-area member and also reports on action under the excessive deficit procedure opened by the Council on 10 July 2026. According to the plan, the revenue measures do not change the rates of the main taxes. Alongside the VAT proposals, it includes a one-off 33% windfall profits tax for 2027 on banks, insurers, larger food retailers, telecoms and certain credit companies, a new excise duty on high-powered luxury cars and higher tobacco excise duties.
For real estate developers and investors, the registration requirement would remove the possibility of selling new buildings before crossing the registration threshold. Businesses near the current threshold should monitor whether the higher threshold is adopted, as it would affect registration decisions from 2027.
Source
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