Bulgaria Tax Guide
Figures on this page were last verified against the cited sources in June 2026. Always check official sources before making a relocation or incorporation decision.
Best for
- Corporate-friendly
10% corporate tax — competitive for founders and holding structures.
Personal Income Tax
Tax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
10% flat rate
Wealth & Inheritance
Practical Notes
Lowest flat tax in EU. Simple tax system. Low cost of living. EU member.
Business & Corporate Tax
Corporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- 10% flat rate
- QDMTT for large MNEs
OECD Pillar Two (15% global minimum tax)
EU Directive transposed. QDMTT, IIR, UTPR live. Standard 10% flat rate remains for non-Pillar-Two entities.
See full implementation trackerTax Treaty Network
US-Bulgaria treaty (2007, in force from 2008). No US totalization. Wide EU treaty network.
See full treaty matrixData Sources
Last verified: June 2026. Always check official sources before making a decision.
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
US citizen moving to Bulgaria? Read this first.
Bulgaria's mid-range personal tax rate (10%) makes the FEIE-vs-FTC choice less obvious for US citizens.
- •If your earned income is at or below the ~$130k FEIE cap and your local effective rate is low, FEIE may dominate. If income is significantly above the cap, FTC usually wins.
- •Both can be combined on different income streams in the same year, but FEIE once revoked cannot be re-elected for 5 years without IRS consent — choose carefully.
- •Self-employment tax is owed in full — Bulgaria has no totalization agreement with the US.
- •Investment income (dividends, capital gains): taxed by Bulgaria at local rates, then FTC offsets the US side.
Need someone to actually plan Bulgaria for you?
TaxAtlas covers the rates and rules. For the personal side — exit planning, residency strategy, business structure, or filings — request a response and we'll point you to relevant research or a specialist who handles Bulgaria cases.
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