site.btaBulgarian Stock Exchange Pushes Back against Raising Dividend Tax

The Bulgarian Stock Exchange (BSE) is making efforts to ensure that a proposal in next year’s draft budget to raise the dividend tax from 5% to 10% is abandoned — or at least for publicly listed companies in Bulgaria, BSE Executive Director Manu Moravenov said here Monday. He was among the speakers at an international scientific conference titled "Economic Development and Policies: Realities and Prospects. Sustainability in the Conditions of Global Transformation”, organized by the Institute of Economic Studies (IES) with the Bulgarian Academy of Sciences.

According to Moravenov, BSE is working hard to promote the Bulgarian capital market, which offers companies an opportunity to secure financing not only through commercial banks but also through investor capital—capital that can be managed in a way that benefits both businesses and investors through the distribution of dividends.

"Unfortunately, the dividend tax in Bulgaria will probably be raised, but believe me, we are fighting very hard to prevent this - at least for companies listed on the stock exchange," Moravenov said.

In his view, Bulgaria has a "unique historical opportunity", since investors’ attention will turn to the Bulgarian capital market immediately after the country joins the eurozone at the start of 2026. He gave the example of Croatia, where two years after adopting the euro, the main Croatian stock index and the stock exchange itself are among the fastest-growing in Europe, and during this period there have already been three successful initial public offerings (IPOs) totaling around EUR 300 million.

"I personally believe that the Bulgarian capital market has even greater potential than Croatia's," Moravenov said, expressing the opinion that after eurozone accession, the share prices of Bulgarian public companies will rise.

He added that Bulgaria has a few years in which it can take advantage of the changing European economic landscape and its own strengths, including membership in the eurozone and the Schengen area. Moravenov emphasized that the country’s strategic geographic location could help it become one of the fastest-growing economies, provided it focuses primarily on developing infrastructure.

According to him, the capital market can play a key role in this by activating dormant savings sitting in banks and pension funds. "There is plenty of money for investment. You know how much capital the pension funds hold; you know how much idle money citizens and households have in their bank accounts. If even a small part of these is activated, the Bulgarian economy will grow at an enormous pace," he said.

Moravenov noted that discussions have been held with all pension funds in the country, which have expressed readiness to support infrastructure development through the capital market, adding that these involve amounts measured in billions.

He also revealed that at least three companies are interested in dual listing on the BSE and the Frankfurt Stock Exchange through the Eurobridge segment, mentioning Sirma Group Holding and Sopharma. Moravenov added that the other companies interested are private and have not yet announced plans for an IPO, so he would not name them, but he highlighted that they are companies with annual revenues of EUR 500 million or more.