Bulgaria Income Tax 2026: Just 10% Flat — Here's the Full Picture
Bulgaria charges only 10% flat tax on personal income — one of the lowest rates in the EU. Learn how it applies in 2026, what social security you'll pay on top, which deductions are available, and how to file as a resident or expat.
Want to pay less tax?
Upload your documents, track income across currencies, and get an AI report with specific savings strategies.
Get started freeTax Residency and Who Must Pay
Who is a Bulgarian Tax Resident?
A person is a tax resident of Bulgaria if they live in Bulgaria for more than 183 days in a year, or if their main home is in Bulgaria. Residents pay tax on their worldwide income. Non-residents pay tax only on their Bulgarian-source income.
Stay in Bulgaria 183+ days = resident
Permanent address or family in Bulgaria = resident
Residents: tax on worldwide income
Non-residents: tax only on income from Bulgaria
Personal Income Tax Rate in Bulgaria 2026
| Annual Taxable Income | Tax Rate | Effective Calculation |
|---|---|---|
| All income levels | 10% | Flat rate on all taxable income |
Bulgaria has a flat income tax. The rate is 10% for all personal income in 2026. There is no progressive tax system and no tax-free threshold for most residents.
No Tax-Free Threshold
All taxable income is taxed
Key Tax Deductions and Allowances in Bulgaria 2026
Voluntary Pension Contribution Deductions
Up to 10% of income can be deducted if you pay into voluntary pension funds (within allowed limits).
Voluntary Health Insurance Deduction
Up to 10% of income can be deducted for payments to voluntary health insurance funds (within legal limits).
Life Insurance Deduction
Up to 10% of income can be deducted for life insurance contributions (within legal limits).
Disabled Persons’ Allowance
People with 50% or more disability can deduct up to 7,920 BGN for 2026.
Social Security Contributions Bulgaria 2026
Employee and Employer Contributions
Employees and employers both pay social security in Bulgaria. The total rate is about 32.7%. Employees pay about 13.78%, employers pay around 18.92% (these numbers can change slightly by sector). Social security covers pension, health, unemployment, accident, and maternity. For 2026, the income cap for contributions is 3,850 BGN per month. Income above this amount is not subject to social insurance.
Main Social Security Rates 2026
| Type | Employee Rate | Employer Rate | Total |
|---|---|---|---|
| Pension Fund | 8.78% | 10.22% | 19.00% |
| General Illness & Maternity | 1.4% | 2.1% | 3.5% |
| Unemployment | 0.4% | 0.6% | 1.0% |
| Accident at Work | 0% | 0.5-1.1% | 0.5–1.1% |
| Health Insurance | 3.2% | 4.8% | 8.0% |
| Total (approx) | 13.78% | 18.92% | 32.7% |
Social security contributions are calculated on gross salary up to 3,850 BGN per month in 2026. Employees who are self-employed pay both shares, but rates and base can differ.
Taxation of Capital Gains, Dividends, and Other Income
Investment and Savings Income Taxed Separately
Dividends from Bulgarian companies are taxed at a flat 5%. Most capital gains from sale of shares on the Bulgarian Stock Exchange are tax-free. Other capital gains (like from property sales) are taxed at 10%, unless exemptions apply (for example, family home held more than 3 years). Savings interest is taxed at 8% in 2026.
Dividends: 5% final tax
Capital gains on Bulgarian-listed shares: tax-free
Other capital gains: usually 10%
Savings interest: 8% tax in 2026
Exemptions apply for main home sales
Tax Filing and Compliance in Bulgaria
How to File Personal Income Tax in Bulgaria
Most employees in Bulgaria have their tax withheld by their employer (PAYE). You must file a personal income tax return if you have other income or are self-employed. The main filing deadline is April 30 of the year after the income was earned. You can file online with a Personal Identification Code (PIC) or e-signature, or submit a paper form to the National Revenue Agency.
Tax filing deadline: April 30 each year
File online at nap.bg with PIC or e-signature
Paper filing possible at NRA office
Self-employed must always file
Early filers (before March 31) get 5% discount (max 500 BGN)
Special Rules for Expats
Tax for Foreigners and Double Taxation
Expats who become tax residents pay tax on worldwide income. Bulgaria has many double taxation agreements to avoid being taxed twice on the same income. If you pay tax in another country, you may be able to deduct it from Bulgarian tax. Some foreign pensions and social benefits may be tax-free if covered by a treaty.
Expats in Bulgaria: worldwide income taxed for residents
Double taxation treaties with 70+ countries
Foreign income may be exempt or get tax credit
Check your treaty for details
Short stays (less than 183 days): only Bulgarian-source income taxed
2026 Key Changes and Updates
Income Cap for Social Security Contributions Increased
The maximum monthly income for social security contributions rises to 3,850 BGN in 2026.
Interest Income Tax Decreased
Interest income from deposits is taxed at a reduced rate of 8% in 2026 (from 10% in 2025).
Online Tax Filing Incentive
Taxpayers who file before March 31, 2026 and pay online get a 5% reduction, up to 500 BGN.
Social Security Rates Updated
Small changes in some social insurance rates—check the NRA 2026 table for your sector.
No Changes to Flat Personal Income Tax Rate
The flat 10% personal income tax rate remains the same for 2026.
Frequently Asked Questions
What is the flat income tax rate in Bulgaria for 2026?
The personal income tax rate in Bulgaria is 10% for all taxable income in 2026.
How much are social security contributions in Bulgaria?
The total social security contribution is about 32.7% (13.78% for employees, 18.92% for employers) on monthly income up to 3,850 BGN.
Is there a tax-free threshold in Bulgaria?
No, there is no basic tax-free threshold. All taxable personal income is subject to the flat 10% rate, except for special deductions or disabled persons.
How and when do I file my Bulgarian income tax return?
File by April 30, 2026, for 2025 income. You can file online at nap.bg with a PIC or e-signature, or submit a paper form to the NRA office.
Do expats need to pay tax in Bulgaria?
Expats who are tax residents pay tax on worldwide income. Most non-residents pay tax only on Bulgarian-source income.
What income is not taxed in Bulgaria?
Income like child allowances, scholarships, and certain main home sales may not be taxed. Main home sale is tax-free if held for over three years.
What is the tax on dividends in Bulgaria?
Dividends received from Bulgarian companies are taxed at 5% final withholding tax.
Can I get a tax deduction for voluntary pension or health insurance?
Yes, you can deduct up to 10% for each type (voluntary pension, life, and health insurance), subject to limits.
How much tax do self-employed pay in Bulgaria?
Self-employed pay 10% income tax plus social security on their income base. Social security is both the employee and employer share.
How do I calculate my personal income tax in Bulgaria?
Multiply your taxable income by 10%. Deduct allowed pension, health, life insurance, and disability deductions if they apply.
Calculate Your Bulgaria Income Tax
Use our tool to estimate your Bulgaria personal income tax and social contributions for 2026. See your net salary easily.