What is changing in Bulgaria from January 1, 2025?

For the third time in recent years, Bulgaria begins the new year without an approved budget and changes to tax laws.

This situation has somewhat limited fiscal changes coming into effect on January 1, 2025, although some were already set in motion last year.

Schengen Accession
Border controls will be removed only along internal EU borders. Control between Bulgaria and Romania will remain in place for the first six months, but it will not be fully enforced. In emergencies or in response to significant threats, checks may be reinstated.

Increase in Electricity and Gas Prices
As of January 1, household electricity prices are rising unexpectedly, with an average increase of 8.4% nationwide. The third and fourth units of the “ContourGlobal Maritsa East 3” thermal power plant will also start operating, aiming to reduce electricity imports from neighboring markets.

Additionally, from January 1, the price of gas is increasing by nearly 8%, bringing the January price to BGN 81.94 per MWh.

Minimum Wage Increase
Despite the lack of an approved budget, the caretaker government has approved a record increase in the minimum wage for 2025. Starting January 1, it rises by over 15%, reaching BGN 1,077.

The poverty threshold has also been raised by about 21% to BGN 638, which is essential for determining access to social benefits.

Retirement Age and Work Experience
In 2025, the retirement age for women becomes 62 years and 4 months, and for men – 64 years and 8 months. To retire, women must have accumulated 36 years and 8 months of work experience, while men need 39 years and 8 months.

Base Interest Rate
As of January 1, the base interest rate calculated by the Bulgarian National Bank (BNB) dropped by 9 basis points compared to December, reaching 2.95%. The BNB calculates the base rate based on data from credit transactions made by commercial banks. The base interest rate in Bulgaria began to decrease at the start of 2024 when it was still close to 4%.

VAT Rates and Threshold
From January 1, the VAT rate for restaurants, bread, and flour automatically returns to 20%, as the reduced rates were set to expire at the end of 2024 under current legislation. Additionally, the VAT registration threshold has been increased to BGN 166,000 as of January 1.

Personal Documents
The cost of issuing documents such as ID cards is increasing. According to changes in Tariff 4, the cost of a standard ID card will rise from BGN 18 to BGN 30. The price for expedited service will jump from BGN 36 to BGN 60, while express service will increase from BGN 90 to BGN 150.