Bulgaria's Tax-to-GDP Ratio Declines, Among Lowest in the EU

According to Eurostat data, Bulgaria's tax-to-GDP ratio is among the lowest in the European Union. In 2023, the overall tax-to-GDP ratio for the EU, which includes the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), was recorded at 40.0%. This figure represents a decrease from 40.7% in 2022.

Similarly, the tax-to-GDP ratio within the euro area also declined, dropping from 41.4% in 2022 to 40.6% in 2023. In absolute terms, revenues from taxes and social contributions across the EU rose by 308 billion euros compared to the previous year, totaling 6.883 trillion euros.

The variation in the tax-to-GDP ratio among EU member states is notable. The highest ratios were found in France (45.6%), Belgium (44.8%), and Denmark (44.1%). Conversely, Bulgaria's ratio stood at 29.9% in 2023, placing it alongside Ireland (22.7%), Romania (27.0%), and Malta (27.1%) as having some of the lowest tax shares in relation to GDP.

In the last year, 11 EU countries experienced an increase in their tax-to-GDP ratios, with the most significant rise noted in Cyprus, which jumped from 35.9% in 2022 to 38.8% in 2023. Luxembourg also saw a substantial increase, moving from 40.2% to 42.8%.