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Bulgaria Tax Guide

Europe
Updated January 2025
Sources + last updated

This page includes citations to the sources used for this entry. Always verify with official sources before making decisions.

Personal Tax Score
85/100
Very Tax Friendly
Business Tax Score
88/100
Very Tax Friendly

Personal Income Tax

Tax Residency

Day Threshold
183 days
Note
183 days required for tax residency

Income Tax Rates

Top Marginal Rate
10%
Structure
Flat 10% on all income

Foreign Income Treatment

System
Worldwide
Details
Bulgarian residents taxed on worldwide income

Investment Income

Capital Gains
10%
Dividends
5%
Interest
10%

10% flat rate


Wealth & Inheritance

Wealth Tax
No - No wealth tax
Inheritance Tax
Yes - Inheritance tax 0.4-6.6% depending on relationship

Practical Notes

Lowest flat tax in EU. Simple tax system. Low cost of living. EU member.

Business & Corporate Tax

Corporate Income Tax

Headline Rate
10%
Effective Rate Note
10% flat corporate tax; 15% QDMTT for large MNEs
Free Zone / Incentives
Various municipal incentives available

Withholding Taxes

Dividends
5%
Interest
10%
Royalties
10%

VAT / GST

Rate
20%
Note
20% VAT

Compliance & Substance

Substance Requirements
Moderate - EU requirements
Compliance Friction
Low to moderate - EU member

Notable Regimes

  • 10% flat rate
  • QDMTT for large MNEs

Data Sources

Last updated: January 2025. Always verify with official sources before making decisions.

FAQ

What is the personal income tax rate in Bulgaria?

Bulgaria has a top personal income tax rate of 10%. The tax structure is: Flat 10% on all income. See the detailed breakdown above and verify with official sources.

Do I need to pay tax on foreign income in Bulgaria?

Bulgaria uses a worldwide system for foreign income. Bulgarian residents taxed on worldwide income

What are the residency requirements for Bulgaria?

Tax residency in Bulgaria generally requires 183 days of physical presence. 183 days required for tax residency. Always verify current rules with official sources.

Is there a wealth tax in Bulgaria?

No, Bulgaria does not have a wealth tax. No wealth tax

What is the corporate tax rate in Bulgaria?

The corporate tax rate in Bulgaria is 10%. 10% flat corporate tax; 15% QDMTT for large MNEs