Government Submits 2026 Budget: What Tax and Fee Increases Are Being Prepared

Bulgaria's Council of Ministers has approved the draft Law on the State Budget for 2026, setting the stage for a parliamentary debate that will shape the country's finances for the year ahead. Finance Minister Galub Donev announced the approval at a briefing, according to Varna24. The budget package is expected to be submitted to the National Assembly on the same day it clears the cabinet table.

Western context: Bulgaria's annual budget process mirrors that of most EU member states, where the government drafts a spending plan and parliament holds the final vote, often after weeks of heated revision.

What Is on the Table

Alongside the main state budget, the Council of Ministers is also expected to approve the draft Law on the State Social Security Budget for 2026, Dariknews reports. Social security funding is a politically sensitive area in Bulgaria, where pension adequacy has long been a concern for both residents and the large diaspora community sending remittances home to elderly relatives.

The broader package signals that increases to certain taxes and fees are being prepared, though the precise details of those changes are still working their way through the legislative process. Dariknews notes the July 1 date as the likely moment when the full picture becomes clearer, once the budget lands formally before parliament.

Why Bulgarians Abroad Should Pay Attention

For the Bulgarian diaspora, a budget that touches on property-related taxes and municipal fees is anything but abstract. Many Bulgarians living in Western Europe or North America continue to own apartments, houses or land back home, and changes to local taxes or administrative fees can translate directly into higher annual bills, even for properties that sit empty most of the year.

Beyond property, shifts in social security contributions affect family members still employed in Bulgaria, and any adjustments to VAT or excise duties ripple through the cost of living for relatives left behind. Keeping an eye on how parliament amends the government draft over the coming weeks is therefore time well spent for anyone with financial ties to the country.

The National Assembly is expected to begin its review shortly after the submission, with committee hearings likely to surface the specific tax and fee proposals in greater detail. Zulvata will continue tracking the debate as the numbers become public.