Tax Filing in Bulgaria: The Basics
Bulgaria's tax system is straightforward compared to most EU countries — but "straightforward" doesn't mean "automatic." If you're a Bulgarian tax resident, you may need to file an annual tax return. Here's who needs to file, when, and how.
Who Must File a Tax Return?
Must File (GDD-50 Personal Return)
- Freelancers (svobodna profesiya): All self-employed individuals — no exceptions
- Sole traders (ET): Must file regardless of income level
- Individuals with foreign income: Any Bulgarian tax resident who earned income abroad — salary, freelance, rental, dividends, interest, or capital gains
- Individuals with multiple income sources: Salary + rental income, salary + freelance work, etc.
- Capital gains: Anyone who sold shares, crypto, real estate (if not exempt), or other assets at a profit
- Rental income: Property owners receiving rent
- Individuals claiming deductions: Even if not otherwise required, you need to file to claim child deductions, disability deductions, or voluntary pension/insurance deductions
Do NOT Need to File
- Employees with only Bulgarian salary income: If your employer withholds tax correctly and you have no other income, you're exempt from filing
- Exception: Even salary-only employees must file if they want to claim child deductions and didn't submit a declaration to their employer
The expat trap: Most foreigners who become Bulgarian tax residents have foreign income — even if it's just interest on a foreign bank account, dividends from foreign shares, or rental income from property in their home country. All worldwide income must be declared. The NRA increasingly cross-checks with foreign tax authorities through automatic information exchange (CRS/DAC). Not declaring foreign income is the #1 audit trigger for expats.
Key Deadlines for 2026 (Filing for Tax Year 2025)
| What | Deadline | Notes |
|---|---|---|
| Personal tax return (GDD-50) | April 30, 2026 | For all individual income earned in 2025 |
| Early filing discount | March 31, 2026 | File + pay by March 31 = 5% discount on tax due |
| Corporate tax return (Form 1010) | June 30, 2026 | EOOD/OOD annual corporate income tax declaration |
| Annual financial statements | September 30, 2026 | Submit to Commercial Register (Търговски регистър) |
| Freelancer advance tax payments | Quarterly (Jan 31, Apr 30, Jul 31, Oct 31) | Advance tax payments during the current year |
| Social security annual reconciliation | April 30, 2026 | Self-employed persons reconcile actual vs. declared income (Table 1 / Table 2 of GDD-50) |
| VAT returns | 14th of the following month | Monthly submission for VAT-registered entities |
The 5% early filing discount: If you file your personal GDD-50 return AND pay any tax owed by March 31 instead of April 30, you receive a 5% discount on the tax due. On a EUR 5,000 tax bill, that's EUR 250 saved. On EUR 10,000, it's EUR 500. It's free money for being organized.
Which Form Do You Need?
GDD-50 — Personal Income Tax Return
The Годишна данъчна декларация по чл. 50 от ЗДДФЛ (Annual Tax Declaration under Article 50 of the Personal Income Tax Act) is Bulgaria's personal tax return. It consists of a main form plus annexes:
| Annex | Income Type | Who Files It |
|---|---|---|
| Annex 1 | Employment income (salary) | Employees with foreign employment income or multiple employers |
| Annex 2 | Freelance / self-employed income | Freelancers (svobodna profesiya), independent contractors |
| Annex 3 | Rental income, sale of property | Landlords, property sellers |
| Annex 4 | Sole trader income (ET) | Sole traders (Ednolichen turgovets) |
| Annex 5 | Capital gains (shares, crypto, etc.) | Anyone who sold financial instruments at a profit |
| Annex 6 | Dividends and liquidation shares | Recipients of Bulgarian-source dividends (often auto-taxed, but some file) |
| Annex 8 | Foreign income | Tax residents with any income earned outside Bulgaria |
| Table 1 / Table 2 | Social security reconciliation | Self-insured persons (freelancers, EOOD managers) |
Most expats need: The main form + Annex 8 (foreign income) at minimum. Freelancers add Annex 2. EOOD owners receiving dividends may need Annex 6. Capital gains from shares or crypto require Annex 5. The NRA's online portal walks you through which annexes to activate.
Form 1010 — Corporate Income Tax Return
EOODs and OODs file Form 1010 (Годишна данъчна декларация по чл. 92 от ЗКПО) — the annual corporate tax declaration. Key points:
- Deadline: June 30 of the following year
- Tax rate: 10% corporate income tax on profit
- Filed by: The company's accountant or authorized representative
- Annual financial statements must be prepared by a certified accountant and submitted to the Commercial Register by September 30
- Companies with no activity: Must still file a declaration of inactivity to the Commercial Register by June 30 — failure to file triggers a EUR 500 penalty
How to File: Step-by-Step
Online Filing (Recommended)
Get Access to the NRA Portal
Visit portal.nra.bg. You need either a Qualified Electronic Signature (QES) — purchased from providers like B-Trust, Evrotrust, or InfoNotary (EUR 15–30/year) — or a free Personal Identification Code (PIC) obtained at any NRA office with your ID/passport.
Gather Your Documents
Service certificate from your employer (Служебна бележка), foreign income records, bank statements for interest/dividends, crypto transaction records, rental contracts and income proof, social security contribution records, receipts for donations or voluntary pension/health contributions.
Complete the Form Online
Log into the NRA portal, select "Annual tax declarations," choose GDD-50, and fill in the relevant sections. The portal auto-calculates tax and validates entries. Activate only the annexes you need. The interface is available in Bulgarian — use your accountant or Google Translate if needed.
Submit & Pay
Submit electronically. Pay any tax due via bank transfer to the NRA's account (IBAN details are shown after submission). Payment can also be made via ePay.bg. Keep the confirmation number — it's your receipt. If you're owed a refund, the NRA transfers it to your bank account within 30 days (sometimes up to 3 months).
Paper Filing (Alternative)
You can still file on paper at any NRA office, but this is increasingly discouraged. Paper forms are available at NRA offices and on nra.bg. The deadline and rules are the same — no penalty for choosing paper, but no particular advantage either.
Deductions & Tax Credits
Personal Deductions
| Deduction | Amount (EUR) | Conditions |
|---|---|---|
| 1 child | 300 from taxable income | Dependent child under 18 (or under 24 if in full-time education) |
| 2 children | 600 from taxable income | Same as above for each child |
| 3+ children | 900 from taxable income | Maximum for 3 or more children |
| Child with disability | 600 per child from taxable income | Child with ≥50% reduced working capacity |
| Personal disability | 3,960 from taxable income | Individual with ≥50% reduced working capacity |
| Voluntary pension contributions | Up to 10% of taxable income | Contributions to supplementary pension funds |
| Voluntary health insurance | Up to 10% of taxable income | Contributions to health insurance above mandatory |
| Donations | Up to 5% of taxable income (50% for certain institutions) | To registered Bulgarian charities, cultural institutions, etc. |
| Mortgage interest (young families) | Limited deduction | Under 35, first home, mortgage from Bulgarian bank |
Freelancer Expense Deduction
Freelancers (svobodna profesiya) receive a 25% flat-rate expense deduction automatically applied to gross income. This means you're taxed on only 75% of your gross income — no receipts needed.
Example: EUR 60,000 gross freelance income × 75% = EUR 45,000 taxable base × 10% = EUR 4,500 income tax.
Maximizing deductions: The most impactful deductions for expats are the voluntary pension contributions (up to 10% of taxable income) and the freelancer 25% expense deduction. Combined with Bulgaria's 10% flat rate, these can push your effective tax rate below 8%. See our salary vs. dividends guide for optimization strategies.
Foreign Tax Credits
If you've paid tax on the same income in another country, you can claim a foreign tax credit on your Bulgarian return. This prevents double taxation.
- How it works: Declare the foreign income in Annex 8, indicate the tax paid abroad, and the credit is applied against your Bulgarian tax liability
- Limit: The credit cannot exceed the Bulgarian tax that would be due on that income (10%)
- Documentation: You need proof of foreign tax paid — a tax certificate or assessment from the foreign authority
- Treaty override: If Bulgaria has a double taxation treaty with the source country, the treaty terms apply. Bulgaria has 70+ treaties
EOOD / OOD Corporate Filing
If you own an EOOD (single-member LLC), you have two separate filing obligations:
- Corporate return (Form 1010): Declare the company's profit and pay 10% corporate income tax by June 30
- Personal return (GDD-50): Declare any salary or dividends you received from the EOOD by April 30
The EOOD Filing Timeline
| Task | Deadline | Who Does It |
|---|---|---|
| Close the books for the year | January–February | Your accountant |
| Prepare annual financial statements | February–March | Certified accountant (required by law) |
| File Form 1010 (corporate tax return) | June 30 | Accountant via NRA portal |
| Pay corporate income tax | June 30 | Bank transfer to NRA |
| File your personal GDD-50 (salary + dividends) | April 30 | You or your accountant |
| Submit financial statements to Commercial Register | September 30 | Accountant or authorized person |
| Declare dividends distributed (if applicable) | Within the quarter of distribution | Accountant files quarterly declaration |
Dividend tax timing: When your EOOD distributes dividends, the company must withhold 8% dividend tax and remit it to the NRA by the end of the month following the quarter of distribution. This is the company's obligation, not yours personally. Your accountant handles this — but make sure it actually gets done, because penalties for late withholding are steep.
Need Help with Tax Filing?
Our team handles personal and corporate tax filings for expats and EOOD owners. We speak English, know the common pitfalls, and file on time — every time.
Get a Filing QuoteSocial Security Reconciliation
Self-insured persons (freelancers, EOOD owner-managers who pay themselves a salary) must complete Table 1 and Table 2 of the GDD-50. This reconciles your advance social security contributions against your actual income.
- If you underpaid: You owe the difference — payable by April 30
- If you overpaid: The excess is credited against future contributions or refunded upon request
- The reconciliation trap: Freelancers who declared minimum insurable income monthly but earned significantly more face a large April bill. If your actual income was EUR 40,000 but you contributed on EUR 6,600 (minimum), you owe social security on the difference — potentially EUR 2,000–4,000
15 Common Mistakes Expats Make
| # | Mistake | Fix |
|---|---|---|
| 1 | Not declaring foreign income | Declare all worldwide income in Annex 8. CRS data exchange means the NRA will eventually know. |
| 2 | Missing the April 30 deadline | Set a calendar reminder for March 15 to start preparation. File by March 31 for the 5% discount. |
| 3 | Forgetting the social security reconciliation | Complete Table 1/Table 2 of GDD-50. Your accountant should handle this — verify that they did. |
| 4 | Not claiming foreign tax credits | If you paid tax abroad on income declared in Bulgaria, claim it. Leaving money on the table. |
| 5 | Filing as non-resident when you're resident | If you spent 183+ days in Bulgaria, you're a tax resident. Worldwide income applies. |
| 6 | Not filing at all ("I only have salary") | True only if it's Bulgarian salary with proper withholding. Foreign salary, dividends, or rental = must file. |
| 7 | Forgetting to declare crypto gains | Crypto sales, swaps, and conversions are taxable events. Report in Annex 5. See our crypto guide. |
| 8 | Not claiming child deductions | EUR 300–900 deduction requires filing GDD-50 — even if you otherwise wouldn't need to file. |
| 9 | Using EUR amounts instead of BGN on old forms | Since Jan 1, 2026, all tax forms use EUR. If filing for pre-2026 years, use BGN at the fixed rate 1.95583. |
| 10 | EOOD owner not filing personal return | Your EOOD files Form 1010. You personally still file GDD-50 for your salary and dividends. |
| 11 | Not submitting financial statements to Commercial Register | Separate from tax filing. Deadline: September 30. Penalty for non-submission: EUR 250–1,500. |
| 12 | Declaring gross rental income instead of net | Rental income gets a 10% flat-rate expense deduction. You're taxed on 90% of gross rent received. |
| 13 | Not paying advance tax quarterly (freelancers) | Freelancers must make quarterly advance payments. Late payments incur interest. |
| 14 | Thinking the accountant handles everything | Your accountant needs information from you — foreign income, personal deductions, crypto trades. Provide it proactively. |
| 15 | Not keeping records for 5 years | The NRA can audit up to 5 years back. Keep all receipts, contracts, and correspondence. |
Penalties & Interest
| Violation | Penalty |
|---|---|
| Late filing (individuals) | EUR 250 first offense; EUR 500 repeat |
| Late filing (companies) | EUR 250–500 |
| Failure to file at all | EUR 500+ and potential audit |
| Late payment of tax due | Statutory interest (BNB base rate + 10% per annum) |
| Incomplete or inaccurate declaration | EUR 50–250 depending on severity |
| Failure to submit financial statements | EUR 250–1,500 for companies; EUR 100–500 for individuals |
| Late dividend withholding tax | 10% of the unremitted amount (minimum EUR 250) |
| Concealing income (tax fraud) | Criminal penalties for amounts exceeding EUR 1,500 — fines up to EUR 10,000 and imprisonment |
Self-correction is your friend: If you discover an error after filing, you can submit a corrected return until April 30 (for personal) or June 30 (for corporate) without penalty. After the deadline, voluntary corrections within 1 year typically receive reduced penalties. The NRA treats self-correction much more favorably than discovering errors during an audit.