What changes
| Rule | Now | 2027 draft |
|---|---|---|
| Rate | 10% | 10% (no change) |
| Dividend tax | 5% | 5% (no change) |
| Tax loss carry-forward | 5 years, no cap | 10 years, up to 70% of profit per year |
| Threshold for a fixed asset for tax purposes | The lower of €357.90 and the materiality threshold in your accounting policy | €1,000 |
| AI hardware, high-performance computers, servers | Computer rate of 50% (2 years) | Up to double the rate, at most 100% — for new assets from 2027, for 2027–2029 |
Losses: longer, but capped
Today a tax loss is deducted in full from profit over the next 5 years until it is used up. Under the draft, the period becomes 10 years, but each year the loss can reduce profit by no more than 70%. Tax is paid on the remaining 30%, even if there is still unused loss.
Example
A company has an unused tax loss of €120,000 and a profit of €100,000 for 2027.
| Current rule | 2027 draft | |
|---|---|---|
| Loss deducted | €100,000 | €70,000 |
| Taxable profit | €0 | €30,000 |
| Corporate tax | €0 | €3,000 |
| Loss left for future years | €20,000 | €50,000 |
The cap brings tax forward, while the longer period reduces the risk of the loss expiring unused. Start-ups and companies coming out of difficult years are hit hardest. The draft does not yet say how losses from 2022–2026 will be treated — watch the transitional provisions.
Asset threshold — €1,000
Today an asset above €357.90 (or above a lower threshold in your accounting policy) must be depreciated. With the new €1,000 threshold, a laptop, a phone, office furniture or a small tool can be expensed in the year of purchase. This simplifies bookkeeping and brings the tax effect forward.
Accelerated depreciation for AI hardware
For new artificial intelligence hardware, high-performance computing equipment and servers acquired and put into use from 1 January 2027, the annual tax depreciation rate can be up to double the normal rate, but no more than 100%. The measure applies for 2027–2029, and the use of the asset must be documented. For computers, this means writing them off in one year instead of two.
Windfall tax — only for large sectors
The draft introduces a one-off 33% tax for 2027 on profit above the 2020–2025 average plus 20%. It applies to banks, insurers, chains with at least 5 food stores, telecoms, currency exchange offices and quick-loan companies. Small and medium-sized companies outside these sectors are not affected.
What stays the same
The deadlines for the annual corporate tax return (30 June) and advance payments, the reliefs for hiring unemployed people and people with disabilities, and the tax on expenses all stay. The core rules are in Corporate tax in Bulgaria.
Work out your 2027 tax
We forecast your corporate tax under the new loss cap and advise you on when to buy your assets.
Get in touchFrequently asked questions
Is corporate tax changing in Bulgaria in 2027?
The rate stays at 10%. The rules on losses, the asset threshold and depreciation of AI hardware change.
How many years can tax losses be carried forward?
Under the draft, 10 years instead of 5, but each year the loss offsets no more than 70% of profit.
What will the threshold for a fixed asset be?
€1,000 under the draft. Assets below the threshold can be expensed directly.
Does the windfall tax affect me?
Only if you are a bank, insurer, chain with at least 5 food stores, telecom, currency exchange office or quick-loan company.
Sources
- osigurovki.bg — Tax changes 2027 (updated 28 October 2026)
- economic.bg — Bulgaria's tax changes in 2027
This article is general information, not legal advice. Current as of 2 November 2026.
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