Budgeting for 2027: how small businesses in Bulgaria should plan wages, taxes and prices
The fourth quarter is the time to plan next year. Labour costs are rising, the tax dates are known and customers have got used to prices in euro. Here is how to build a budget you actually use — rather than one that sits in a file.
- Build three revenue scenarios — base, downside and upside.
- Plan salaries at full employer cost — about 19% on top of gross.
- Put every tax payment in by month, not just the annual tax.
- Compare budget with actual every month and adjust early.
Why now
By October and November you have data for most of the year and there is still time for decisions that affect both your 2026 tax and the start of 2027 — hiring, investments, price changes, new services.
Step 1: three revenue scenarios
A budget with a single revenue figure is almost always wrong. Build three:
- Base — sales for the last 12 months, adjusted for realistic growth or decline.
- Downside — losing your biggest client or a 15–20% drop.
- Upside — the new products, clients or markets you are genuinely planning.
Plan costs against the base scenario; the downside scenario tells you how much buffer you need.
Step 2: salaries — at full cost
Labour costs are the biggest challenge for Bulgarian companies — 57.84% named them in the Eurochambres Economic Survey 2026. So this is where mistakes are most expensive.
- Plan with the full employer cost: gross salary plus 18.52% contributions and the work-accident rate (0.4–1.1%).
- The maximum insurable income is €2,300 from 1 August 2026 — salaries above it have a different cost structure.
- Allow for pay rises and length-of-service supplements.
- The 2027 minimum wage has not been set — include a scenario with an increase.
Quick calculation for any salary: gross ↔ net and employer cost calculator.
Step 3: taxes by month
| Payment | When |
|---|---|
| VAT payable | monthly by the 14th |
| Payroll contributions and tax | monthly by the 25th |
| Advance corporate tax (quarterly) | by 15 April, 15 July, 15 October |
| Annual corporate tax (balance) | by 30 June |
| Dividend tax | by the end of the month after the month of the decision |
| Local taxes | by 30 June and 31 October (or by 30 April with a discount) |
Step 4: prices
If your costs rise 8–10% a year while your prices stand still, your margin quietly erodes. When planning prices:
- work out how much prices need to rise to keep your margin at the new labour costs;
- check which clients and products are actually profitable — sometimes the biggest client isn't the most profitable one;
- announce changes early and explain them — clients respond better to clear communication.
Step 5: monthly review
A budget only makes sense if you compare it with reality. Once a month compare:
- revenue against the base scenario;
- labour costs as a percentage of revenue;
- gross margin by product or service;
- overdue receivables;
- cash against your 13-week cash-flow forecast.
A variance above 10% on any line is a signal to find out why — and to adjust the plan before it gets expensive.
A simple template
| Line | Budget / month | Actual | Variance |
|---|---|---|---|
| Revenue | €40,000 | ||
| Cost of sales / materials | − €14,000 | ||
| Salaries (full cost) | − €13,000 | ||
| Rent and utilities | − €3,000 | ||
| Marketing | − €2,000 | ||
| Other | − €2,000 | ||
| Profit before tax | €6,000 |
Frequently asked questions
When should I start next year's budget?
In October–November. By then you have data for 9–10 months and time to make decisions before year end.
How detailed should the budget be?
Detailed enough to compare with actual figures every month. For a small company 15–25 lines are usually enough.
What will the minimum wage be in 2027?
The 2027 minimum wage has not yet been set. Build in a scenario with an increase so it doesn't catch you out.
How do I include taxes in the budget?
By month: VAT on the 14th, payroll contributions and tax on the 25th, advance tax quarterly and the annual tax in June.
