Bulgaria: What Taxpayers Need to Know After the Euro Changeover
The annual campaign for filing personal income tax returns under Article 50 of the Personal Income Tax Act is underway
Photo: Stella Ivanova
In 2024, the poverty line in Bulgaria was set at 763.83 leva per month per person in a household. This figure revealed that 21.7% of the country’s population, or 1.4 million people, were living below the poverty threshold. Compared to 2023, the poverty line saw a significant increase of 19.7%, while the proportion of the population affected by poverty rose by 1.1 percentage points.
Impact of Social Transfers and Pension Inclusions
When pension income is considered part of household income, but excluding other social transfers (such as family and social benefits), the poverty rate rises to 30.0%, reflecting an increase of 8.3 percentage points. Furthermore, excluding both pensions and social transfers causes the poverty rate to surge to 46.1%, marking a 24.4 percentage point increase.
Economic Activity and Labor Market Participation
The risk of poverty is closely tied to economic activity, with a significant portion of Bulgaria’s population vulnerable due to their involvement in the labor market. Among those aged 18 and above, the unemployment rate for poverty was notably high, with 58.7% of unemployed individuals classified as poor in 2024. Unemployed men faced a higher poverty risk than women, with a gap of 12.7 percentage points.
Poverty Among Employed Workers
Among employed individuals aged 18-64, 12.1% were considered poor, marking a slight rise of 0.4 percentage points from 2023. The risk of poverty among part-time workers was found to be nearly three times higher than that of full-time workers. Additionally, poverty among working women was 2.5 percentage points lower than that of men.
The Role of Education in Poverty Risk
Education plays a significant role in determining the likelihood of poverty. Among employed individuals with primary or no education, the poverty rate was the highest at 56.3%. This risk decreased sharply for those with secondary education and was lowest among those with higher education, where only 4.8% of workers were classified as poor.
Poverty Risk by Household Type
Households with two adults and three or more children, as well as single-parent households, exhibited the highest poverty rates. In 2024, 47.0% of households with two adults and multiple children were poor, while 40.0% of single-parent households faced poverty. Among single-person households, women were at a greater risk of poverty, with 3.6 percentage points more affected than men. Additionally, households with one member over the age of 65 had a 16.7 percentage point higher risk of poverty compared to those with younger members.
Severe Material and Social Deprivation
In 2024, 16.6% of Bulgaria's population experienced severe material and social deprivation, a slight improvement from 2023, which recorded a figure of 18.0%. Among children, 72.5% of those with parents who had primary or no education were living in poverty. In stark contrast, only 7.1% of children whose parents held higher education were at risk of poverty.
Regional Disparities in Poverty Levels
Poverty levels also varied across regions in Bulgaria. The lowest poverty line was found in the districts of Vidin and Silistra, where it stood at 524 and 550 leva, respectively. In contrast, the highest poverty line was in Sofia (the capital), at 1,183 leva, followed by Pernik (897 leva), Varna (875 leva), Kyustendil (834 leva), and Stara Zagora (818 leva).
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