Bulgaria taxes

Taxation in Bulgaria, Taxes for companies in Bulgaria.

The Bulgarian tax system consists of national taxes and local taxes. Taxes are collected through local governments and include income tax, social tax, land tax, gambling tax, value-added tax, some other taxes.

Corporate income tax

  • Normal rate 10%
  • 10% withholding tax on interest, royalties, service fees, capital gains and certain other income accrued to non-resident entities
  • 5% withholding tax on interest and royalties to EU related parties
  • 5% withholding tax on dividends distributed to non-EU residents
  • 10% one-off tax on certain expenses

Personal income tax

  • Normal rate is 10%
  • up to 31.4% mandatory insurance contributions on a capped base (BGN 2000)
  • 10% one-off tax on interest, royalties, services fees, capital gains and certain other income payable to non-resident individuals
  • 5% one-off tax on dividends and liquidation quotas

Value added tax

  • 20% rate of VAT
  • reduced rate of 9% for hotel accommodation
  • 0% for exports and certain other activities
  • refund of input VAT within three months (regular term)

Other taxes, duties and fees

  • 0.01% – 0.45% annual real estate tax
  • 0.1% – 3% transfer tax for immovable property and vehicles
  • taxes and fees on vehicles, donations, inheritance, etc.
  • excise duties on energy, fuels, alcohol and tobacco
  • customs duties on importation of goods from outside the EU

If you have questions about Bulgaria, do not hesitate to contact us.