Business in Bulgaria and Pension Contributions: Concerns for 2026.

The upcoming increase in the pension contribution by two percentage points, planned in the draft budget for 2026, raises serious concerns about the future of Bulgarian business. This becomes clear from a position of the Bulgarian-Romanian Chamber of Commerce, received today by the BTA editorial office. The organization warns that such a measure could undermine the competitiveness of Bulgarian enterprises, especially in critical production and export-oriented sectors.

Furthermore, the position expresses serious concern regarding the planned increase in the dividend tax, which is to be doubled _q_ from 5 to 10 percentage points. The Chamber warns that this action represents a significant risk to the investment environment and entrepreneurship in the country. Increasing the administrative and tax burden, especially for small and medium-sized enterprises, is another key reason for concern. It is believed that doubling the dividend tax at a time of economic uncertainty will send a negative signal to foreign investors, including Romanian businesses, which in recent years have increased their presence in Bulgaria.

The document emphasizes that despite the high public spending outlined in the draft budget, there is a lack of specific structural reforms in critical areas such as the pension system, healthcare, the judicial system, and investment conditions. Increasing spending without the necessary reforms carries a serious risk of inflationary pressure, which could limit the purchasing power of the population.

In conclusion, the Bulgarian-Romanian Chamber of Commerce categorically states that it cannot support a budget that risks reducing the competitiveness of businesses, weakening the incomes of citizens, and contributing to social instability. Obviously, the budget in question raises serious concerns about the stability and future of the Bulgarian economy.