The Hidden Economy in Bulgaria: Opinions and Assessment of Bulgarian Citizens

Ива Райчева; Васил Бозев

doi:10.37075/RP.2025.4.07

Authors

Assist. Prof. Dr Iva Raycheva Department of Statistics and Econometrics, Faculty of Applied Informatics and Statistics, UNWE Author https://orcid.org/0009-0006-9606-160X
Assoc. Prof. Dr Vasil Bozev Department of Statistics and Econometrics, Faculty of Applied Informatics and Statistics, UNWE Author https://orcid.org/0000-0001-6995-9111

DOI:

https://doi.org/10.37075/RP.2025.4.07

Keywords:

Income undeclaration, Hidden economy, Corruption, Tax evasion, Public procurement

O17, E26, H26

Abstract

The aim of the study is to provide the results of a current study of the „hidden economy“ in Bulgaria. It was carried out in October 2024 as a representative online interview among 1000 people aged 20-65 living in the country. The main results show that the share of the hidden economy among the self-employed and those with their own business is higher than that among hired labor. More than half of the hired laborers would accept a payment that they know will not be declared. Slightly over 1/3 of the self-employed and those with their own business think that over 40% of municipal orders are based on bribes. The share of the “hidden economy” is highest in construction, catering and tourism. The most important reasons for the existence of the “hidden economy” are corruption, impunity for illegal actions and ineffective tax control.

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