Tax highlights in Bulgaria

   Lower your taxes  and become free! Check Bulgarian tax residency options here.

Bulgaria offers one of the best taxation systems within EU. The country as a member of the European Union applies a worldwide income tax system and residents are taxable on their worldwide income. Bulgarian companies are subject to a flat tax rate of 10% and the taxable profit is the annual financial result adjusted for tax purposes. Bulgaria also offers a flat personal income tax rate of 10%.  Bulgaria’s taxation framework is exceptional from an EU and other non-EU onshore zones perspective.

The currency of the country is Bulgarian Lev (BGN) and it is connected to the EUR. The official exchange rate is fixed and it is 1 BGN=1.95583 EUR.

Bulgaria applies IFRS as a statutory accounting basis. Only certain entities are allowed to apply the national financial reporting standards for small and medium-sized enterprises.

Main business entities are the limited liability company, the joint stock company, sole trader and branch of a non-resident company.

Please find the tax highlights in Bulgaria :

Corporate profit tax

  • 10% withholding tax on interest, royalties, service expenses, capital gains and certain other income payable to non-resident entities and individuals
  • 0% withholding tax on dividends and liquidation quotas payable to EU entities
  • 5% withholding tax on dividends and liquidation quotas payable to non-EU entities and residents
Personal income tax

  • up to 29.7% mandatory insurance contributions on a capped base of BGN 2,600 per month
  • 5% one-off tax on dividends and liquidation quotas
Value added tax

  • reduced rate of 9% for certain tourist services
  • 0% for exports and certain other activities
  • refund of input VAT within three months (regular term)
  • faster refund within one month if certain conditions are met
Other tax, duties and fees

  • 0.01% – 0.25% annual real estate and property tax
  • 0.1% – 3% transfer tax for real estate and vehicles
  • tax and fees on vehicles, donations, inheritance, etc.
  • excise duties on energy, fuel, alcohol and tobacco
  • customs duties on imports of goods from outside the EU

You can find more about our company registration and bank account services here. 

Innovires lawyers could professionally assist you starting your activity in Bulgaria. We offer:

  • Company establishment;
  • Personal tax residency assistance;
  • VAT registration and accounting services;
  • Providing full legal and accounting assistance
  • Drafting/amending agreements with partners and clients;
   Lower your taxes  and become free! Check Bulgarian tax residency options here.

Please, contact us for more information.

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