In this article, we will review the most important changes expected in 2026 that foreign investors and business owners in Bulgaria need to start preparing for now. Timely planning in the areas of taxation, accounting, and financial processes can save significant costs and administrative effort. 💼
Expected increase in the dividend tax
Currently, the dividend tax in Bulgaria is 5%, but an increase to 10% is being discussed. This will directly affect companies with foreign ownership, especially:
- holding structures;
- individual investors;
- companies that distribute dividends regularly;
- companies that transfer profits to related parties abroad.
Companies should promptly review their profit distribution policies and, where appropriate, consider accelerating dividend payments before the new rate comes into force.
Preparation for the euro transition
Bulgaria is actively preparing to join the euro area. All BGN balances are expected to be automatically converted into EUR. This means serious challenges for businesses, particularly in the following areas:
- updating accounting software;
- readiness of ERP systems;
- adaptation of banking systems;
- contract recalculations;
- changes to price lists and offers;
- foreign exchange accounting and currency differences.
Foreign-owned companies should carry out a legal and accounting review of their contracts—especially long-term ones—to avoid financial losses and uncertainties during the euro implementation process.
Additional tax and regulatory changes
Further important updates are expected in 2026, including:
- possible changes to the global minimum corporate tax;
- alignment with European tax directives;
- new reporting requirements for cross-border activities;
- increased control over low-tax structures;
- changes in transfer pricing regulations.
Companies operating internationally should prepare their structure and documentation for stricter tax oversight.
Changes in salaries and social security thresholds
Adjustments to social security bases and minimum thresholds are also expected. This directly affects:
- budgeting;
- workforce planning;
- contracts with foreign employees and secondees;
- employer costs.
What additional actions should foreign-owned companies take in 2026?
| Area | Specific Action | Why It Matters |
|---|---|---|
| Tax strategy | Review holding structure | Dividend tax optimization |
| Currency | Analyze exposure in BGN | Reduce currency risk |
| Contracts | Update currency clauses | Prevent legal disputes |
| Banking | Confirm EUR IBAN | Smooth payments after transition |
| Software | Test accounting systems | Avoid reporting errors |
| Personnel | Recalculate salaries | Accurate labor costs |
| Reporting | Parallel BGN/EUR accounting | Easier transition and comparability |
| Tax control | Internal tax review | Lower risk of penalties |
How can T8G Consulting assist you?
The T8G Consulting team provides comprehensive support for foreign-owned companies in:
- structuring business operations in Bulgaria;
- tax planning;
- registration and accounting services;
- tax risk analysis;
- preparation for the euro;
- corporate and financial reporting;
- communication with the National Revenue Agency and regulators.
We do not just monitor changes — we turn them into opportunities for your business.
2026 will be a year of significant changes for businesses in Bulgaria. Foreign investors should be proactive and well prepared. The earlier the analysis and adaptation are completed, the lower the risk and the higher the financial efficiency.
Contact T8G Consulting today to prepare your business for the future without surprises. For useful and interesting information, visit our partners’ channel!