Bulgaria takes a more liberal approach to drinking than most Eastern European countries, but it takes a hard line on smoking and has recently been clamping down on vaping. There are no restrictions on vaping indoors and e-cigarettes can be freely bought and sold domestically, but cross-border sales are banned and a tax on vape juice was introduced in 2023 which will increase in 2026. After adjusting for affordability, the current vape tax of €0.18 per ml is very high, adding €1.80 plus VAT to the cost of a standard bottle. In February 2025, a complete ban on the import, distribution and sale of vapes was suddenly proposed and was approved in parliament on its first reading. At the time of writing, it is unclear whether it will become law.

Bulgaria’s taxes on beer and spirits are relatively low and there is no wine duty. There are few restrictions on beer and wine advertising but spirits advertising is prohibited on TV and radio except in a heavily regulated form after 10pm.

Tobacco regulation is much tougher. There are few exemptions to Bulgaria’s tobacco advertising ban and the sale of cigarettes from vending machines is prohibited. Its smoking ban is among the most severe in Europe with no exemptions in bars, restaurants or workplaces (except for shisha) and some restrictions outdoors. Compliance with the ban has improved over the years after being poorly enforced at first.

Tobacco taxes in Bulgaria are the lowest in the EU in cash terms but are much more punitive once adjusted for income. There are no nanny state laws on food and soft drinks, and there is no tax on sugary drinks. There was talk of Bulgaria introducing taxes on ‘junk food’ and energy drinks in 2015 but the Finance Ministry opposed the idea and it came to nothing.

With thanks to the Institute for Market Economics