Bulgaria Tax Calculator 2026

Bulgaria uses one of EU's simplest tax systems: flat 10% rate on all personal income regardless of amount. No progressive brackets. Tax applies to employment income, business income, freelance income, rental income. Tax residents pay 10% on worldwide income. Non-residents pay 10% only on Bulgarian-source income. No wealth tax, no local income taxes. Social security contributions (13.78% employee) are separate from income tax.

Yes, if you become Bulgarian tax resident by spending 183+ days in Bulgaria within 12 months or having your center of vital interests (family, economic ties) there. Tax residents pay 10% flat tax on worldwide income. Bulgaria launched Digital Nomad visa in 2025 for non-EU remote workers, requiring minimum €2,000 monthly income. Visa allows stay up to 1 year. Digital nomads staying under 183 days only pay tax on Bulgarian-source income.

Employees pay 13.78% of gross salary: social security 10.58%, health insurance 3.2%. Employers pay 18.92-19.62%: social security 14.12-14.82%, health insurance 4.8%. Total combined 32.7-33.4%. Self-employed pay full amount themselves. Contributions are capped at monthly maximum. Separate from 10% income tax. Cover health, pension, unemployment, disability.

Dividends paid to individuals (residents and non-residents) are taxed at 5% - one of lowest rates in EU. This is final tax - no additional income tax on dividends. Dividends from Bulgarian companies to EU/EEA resident legal entities may be exempt under Parent-Subsidiary Directive. Liquidation proceeds also taxed at 5%. Very tax-efficient for business owners and investors.

Cryptocurrency capital gains taxed at flat 10% rate for both residents and non-residents. Crypto trading profits treated as regular taxable income. Mining, staking, airdrops also taxable at 10%. Must be declared in annual tax return. Holding crypto for longer periods doesn't reduce tax (no holding period exemption like real estate). One of simplest crypto tax regimes in EU due to flat rate.

Limited deductions compared to other EU countries: voluntary pension and life insurance premiums (up to 10% of income), health insurance for supplementary coverage, donations to registered charities, educational expenses in some cases. No mortgage interest deduction. No dependent child allowances in income tax (family benefits separate). Bulgaria's low 10% flat rate means fewer deductions needed. Statutory 10% deduction for certain income types (rental, royalties).

Tax year follows calendar year (January-December). Filing deadline: April 30 of following year. Can file electronically through National Revenue Agency portal for 5% discount on tax due - then deadline extends to March 31. Sole traders also file by April 30 (or March 31 with electronic filing). Employees with only salary often don't need to file if employer handles withholding. Voluntary filing can claim deductions/refunds.

No wealth tax in Bulgaria. No annual tax on net worth or asset holdings. Inheritance and gift tax exists but rates are very low: 0.4-6.6% depending on relationship to deceased/donor and property value. Direct heirs (children, spouse) pay minimal tax. Lower than most EU countries. No gift tax between spouses and direct descendants in many cases. Property transfer tax 2-3% when buying real estate.

Bulgaria has flat 10% corporate income tax - lowest in EU alongside Hungary. Applies to all companies regardless of size or profit level. No provincial or local corporate taxes. Bulgarian companies taxed on worldwide income. Foreign companies with permanent establishment taxed on Bulgarian income. Loss carry forward allowed for 5 years. Very attractive for businesses. Combined with 5% dividend tax creates efficient structure.

Yes, Bulgaria adopted the euro on January 1, 2026. The Bulgarian lev (BGN) was replaced by the euro (EUR) at the fixed rate 1 EUR = 1.95583 BGN. All prices, salaries and taxes are now in euros. Reduces currency risk for international business. Strengthens financial stability. Bulgaria became the 21st Eurozone member. Tax rates and rules remain the same, just denominated in euros instead of leva.