site.btaBulgaria Records Fourth Lowest Tax-to-GDP Ratio in EU in 2023

The overall tax-to-GDP ratio, meaning the sum of taxes and net social contributions as a percentage of gross domestic product (GDP), stood at 29,9% in Bulgaria in 2023, show Eurostat data published on Thursday. In 2022 the ratio stood at 31.1%.

The country recorded the fourth lowest tax-to-GDP ratio in the European Union (EU).

On average in EU, the tax-to-GDP ratio stood at 40,0%, also a decrease compared with 2022 (40.7%). It varied significantly between EU countries in 2023, with the highest shares of taxes and social contributions as a percentage of GDP being recorded in France (45.6%), Belgium (44.8%) and Denmark (44.1%). At the opposite end of the scale, Ireland (22.7%), Romania (27.0%) and Malta (27.1%) registered the lowest. 

Last year, the ratio increased in 11 EU countries, with the largest increases being observed in Cyprus (from 35.9% in 2022 to 38.8% in 2023) and Luxembourg (40.2% in 2022 and 42.8% in 2023).

In contrast, decreases of more than 0.1 percentage points of GDP were recorded in 12 EU countries, with the largest decreases noted in Greece (from 42.8% in 2022 to 40.7% in 2023) and France (from 47.6% in 2022 to 45.6% in 2023).