Bg Tax Overview

---
name: bg-tax-overview
description: "Overview of the Bulgarian tax system for tax year 2026, in euro after the 1 January 2026 changeover. Gives the headline figures in one place: the calendar tax year, the National Revenue Agency, who is taxed on worldwide income, the flat 10% personal and corporate income tax, the 15% sole-trader rate, the 5% dividend tax, the Pillar Two 15% top-up for groups with EUR 750 million revenue, the 20% and 9% VAT rates and the EUR 51,130 registration threshold, the 2026 insurable income limits, and the main annual deadlines. Use for questions like 'how is Bulgaria taxed', 'Bulgaria tax rates 2026', 'Bulgaria flat tax' or 'when are Bulgarian returns due'. It is a map, not a computation: for the working rules use bulgaria-income-tax, bg-corporate-income-tax, bulgaria-vat-return, bulgaria-social-contributions, bulgaria-payroll, bg-transfer-pricing, bg-cross-border and bulgaria-tax-optimization."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/bg-tax-overview"
  jurisdiction: "BG"
  tax_year: "2026"
  last_updated: "2026-10-30"
---

# Bulgaria Tax Overview

## Bulgarian tax system at a glance

Bulgaria taxes personal and corporate income at a flat 10%. Bulgaria adopted the euro on 1 January 2026. Amounts that the tax laws still print in leva are read as euro at BGN 1.95583 = EUR 1: the lev amount is divided by the full rate and the result is rounded to the cent (Euro Introduction Act arts. 11(2), 12, 13). This overview gives the headline figure for each tax and points to the skill that holds the working rules. Where a figure here differs from the domain skill, the domain skill wins.

- **Tax year.** The calendar year for companies (ZKPO art. 21(1)). A company formed during the year has a first period from formation to 31 December (art. 21(2)). Individuals are taxed on the income of the calendar year and file in the following year (ZDDFL art. 53(1)).
- **Currency.** Euro from 1 January 2026. Old lev amounts convert at BGN 1.95583 = EUR 1 (Euro Introduction Act arts. 11(2), 12, 13). For example, the BGN 500 cap on the early-filing discount is EUR 255.65.
- **Tax authority.** The National Revenue Agency (Национална агенция за приходите, НАП, nra.bg). Corporate returns are filed with the NRA territorial directorate where the company is registered (ZKPO art. 92(2)). The NRA also collects social and health contributions.
- **Individual tax basis.** A resident individual is taxed on income from Bulgaria and abroad (ZDDFL art. 6). A non-resident is taxed only on Bulgarian-source income (art. 7). An individual is resident if they have a permanent address in Bulgaria, stay in Bulgaria more than 183 days in any 12-month period, are sent abroad by the Bulgarian state or a Bulgarian enterprise, or have their centre of vital interests in Bulgaria (art. 4(1)). See bulgaria-income-tax and bg-cross-border.
- **Corporate tax basis.** A company incorporated under Bulgarian law is resident and taxed on its profits and income from all sources in Bulgaria and abroad (ZKPO art. 3). A foreign company is taxed on the profits of a permanent establishment in Bulgaria and on listed Bulgarian-source income (art. 12). See bg-corporate-income-tax and bg-cross-border.
- **Personal income tax rate.** 10% flat on the general annual tax base, which covers employment, freelance and other non-trader business income, rent and other income (ZDDFL art. 48(1)). There is no tax-free band.
- **Sole trader rate.** 15% on the annual base of a sole trader (едноличен търговец, ET) and of a registered farmer taxed under art. 29a (ZDDFL art. 48(2)).
- **Freelancer expense deduction.** Freelancers and other non-traders deduct a fixed share of income instead of real costs: 25% for most liberal professions and non-employment contracts; 40% for authors and licence fees, performing artists, crafts outside the patent tax, lawyers and notaries, and farm, forest, hunting and fishing produce; 60% for registered farmers on unprocessed farm produce (ZDDFL art. 29(1)). See bulgaria-income-tax and bulgaria-tax-optimization.
- **Dividends and liquidation shares.** 5% final tax for individuals (ZDDFL arts. 38(1), 46(3)). 5% withholding tax on dividends paid by a Bulgarian company to a foreign company, or to a resident entity that is not a trader (ZKPO arts. 194(1), 200(1)). Dividends to a company resident in another EU or EEA state are outside this withholding tax, except hidden profit distributions (art. 194(3)(3)).
- **Other withholding tax on non-residents.** 10% on the Bulgarian-source income listed in ZKPO art. 195, such as interest, royalties and fees for technical services, unless a treaty or exemption applies (ZKPO arts. 12(5), 195(1), 200(2)). See bg-cross-border.
- **Corporate income tax rate.** 10% flat (ZKPO art. 20).
- **Pillar Two.** Bulgarian members of a multinational or large domestic group with consolidated revenue of at least EUR 750,000,000 in at least two of the four preceding periods are in scope of the minimum tax rules (ZKPO art. 260a(2)). The top-up rate is 15% less the group's effective rate in the jurisdiction (art. 260v), and the rules include a national top-up tax. See bg-corporate-income-tax.
- **VAT.** Standard rate 20% (ZDDS art. 66(1)). Reduced rate 9% for hotel and holiday accommodation, books and periodicals, and baby food and nappies (art. 66a). A business established in Bulgaria must register when its calendar-year turnover in Bulgaria exceeds EUR 51,130 (art. 96(1)). Returns are monthly, by the 14th of the following month (art. 125(5)). See bulgaria-vat-return.
- **Social security framework.** Pension, illness and maternity, unemployment and work accident contributions under the Social Insurance Code (KSO art. 6(1)), plus health insurance, on insurable income between a monthly floor and ceiling. For 2026 the maximum monthly insurable income is EUR 2,111.64 from 1 January to 31 July and EUR 2,300 from 1 August to 31 December. The minimum for the self-insured is EUR 550.66 and then EUR 620.20 (2026 State Social Insurance Budget Act art. 9). Contribution rates and splits are in bulgaria-social-contributions; payroll withholding is in bulgaria-payroll.
- **Transfer pricing.** Related-party deals, domestic and cross-border, must be at market prices. See bg-transfer-pricing.
- **Annual personal tax return.** 10 January to 30 April 2027 for 2026 income. Sole traders and art. 29a farmers file from 1 March to 30 June 2027 (ZDDFL art. 53(1)). A 5% discount on the tax still due applies if the return is filed electronically by 31 March, the tax is paid by 31 March and there are no debts under enforcement. The discount is capped at BGN 500, which is EUR 255.65 (ZDDFL art. 53(6)).
- **Annual corporate tax return and payment.** Return from 1 March to 30 June of the following year (ZKPO art. 92(2)). The tax, less advance payments, is due by 30 June (art. 93(1)). Companies make monthly or quarterly advance payments (art. 83(1)), except companies with net sales up to BGN 300,000 (EUR 153,387.56) in the year before the preceding year, and new companies in their first year and the next (art. 83(2)).

## Sources

| Source | URL | Read on |
|---|---|---|
| Personal Income Taxes Act (ZDDFL), consolidated to State Gazette 85/2026: arts. 4, 6, 7, 29, 38, 46, 48, 53 | https://lex.bg/laws/ldoc/2135538631 | 2026-10-30 |
| Corporate Income Tax Act (ZKPO), consolidated to State Gazette 55/2026: arts. 3, 12, 20, 21, 83, 92, 93, 194, 195, 200, 260a, 260v | https://lex.bg/laws/ldoc/2135540562 | 2026-10-30 |
| Value Added Tax Act (ZDDS), consolidated to State Gazette 69/2026: arts. 66, 66a, 96, 125 | https://lex.bg/laws/ldoc/2135533201 | 2026-10-30 |
| Social Insurance Code (KSO), consolidated to State Gazette 68/2026: art. 6 | https://lex.bg/laws/ldoc/1597824512 | 2026-10-30 |
| State Social Insurance Budget Act for 2026, State Gazette 68/2026, art. 9 (copy published by the National Social Security Institute) | https://nssi.bg/wp-content/uploads/zbdoo-2026.pdf | 2026-10-30 |
| Euro Introduction Act, arts. 5, 11, 12, 13 | https://lex.bg/bg/laws/ldoc/2137244903 | 2026-10-30 |
| Bulgarian National Bank, National Euro Changeover Plan (the fixed rate BGN 1.95583 = EUR 1) | https://www.bnb.bg/bnbweb/groups/public/documents/bnb_download/eurochangeoverplan_en.pdf | 2026-10-30 |

Not yet confirmed: the State Gazette page of the 2026 State Social Insurance Budget Act did not load (dv.parliament.bg timed out), so the NSSI copy of the Act was used; health insurance rates and contribution splits are not restated here (see bulgaria-social-contributions); nra.bg served a human check on 30 October 2026, so no NRA page was read for this update.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-10-30. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `bg-tax-overview` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/bg-tax-overview. If neither is available, confirm every figure against the official source pages cited above before relying on it.