Bulgaria Tax Calculator 2026

All salaries and wages taxed at 10%. Employer withholds tax monthly. Simple calculation: gross salary × 10%. No brackets, no complications.

Sole traders and freelancers pay 10% on profits (income minus expenses). Can choose lump-sum taxation or actual accounting. Simplest for service providers.

Rental income taxed at 10% after 10% statutory deduction. Effective rate 9%. Can deduct actual expenses if keep records. Very favorable for landlords.

Bulgarian tax residents pay 10% on worldwide income (including foreign sources). Foreign tax credit available to avoid double taxation. Non-residents only pay on Bulgarian income.

One of EU's lowest dividend tax rates. Final tax - no additional income tax. Applies to dividends from Bulgarian and foreign companies. Very efficient for business owners.

Flat 10% on capital gains from selling stocks, crypto, property (with exceptions). Same rate as income tax. Crypto gains fully taxable at 10%.

Interest from EU/EEA banks generally tax-free. Interest from non-EU banks taxed at 10%. Encourages EU banking relationships.

Selling primary residence tax-free if owned 3+ years. One property per year exempt. Major benefit for homeowners. Encourages long-term ownership.

Up to two additional properties tax-free if owned 5+ years each. Allows portfolio building. After holding periods, gains completely exempt.

Property sold before holding period: 10% tax on profit (sale price minus purchase price, with 10% statutory deduction). Still favorable rate.

Covers pension insurance, unemployment insurance, general sickness and maternity. Deducted from gross salary automatically by employer.

Mandatory health insurance contribution. Provides access to public healthcare system. Lower than most EU countries.

Contributions calculated up to maximum monthly income (BGN 3,750 for 2025, subject to annual increase). High earners pay less in percentage terms.

Employer portion for pension, unemployment, work accidents. Rate varies slightly by risk class of business activity. Paid on top of gross salary.

Employer's health insurance contribution. Combined employee+employer total 8% for health. Lower than Western Europe.

Combined employee+employer contributions. Much lower than France (65%), Belgium (53%), Germany (40%). Competitive advantage for businesses.

Self-employed pay both employee and employer portions. Calculate on self-declared income within min-max thresholds. Can choose income level for contribution calculation.

Can choose contribution base between minimum (BGN 933 for 2025) and maximum (BGN 3,750). Lower base = lower contributions but lower pension. Strategic planning possible.

Contributions to voluntary pension funds deductible up to 10% of gross income. Encourages retirement savings. Must be to licensed funds.

Premiums for supplementary life insurance deductible up to 10% of income. Must be voluntary (not mandatory insurance). Promotes personal risk management.

Donations to registered charities, religious organizations, educational institutions deductible. Very generous limit (65%) but rarely fully utilized. Must have documentation.

Certain income types (rental, royalties) receive automatic 10% deduction before tax applied. No documentation needed. Simplifies tax calculation.

Unlike many countries, no deduction for mortgage interest. Reflects Bulgaria's philosophy: low rates, simple system, fewer deductions.

No child tax credit or dependent allowance in income tax system. Family benefits exist separately through social programs. Income tax stays simple.

No deduction for out-of-pocket medical expenses. Public healthcare funded through mandatory contributions. Private costs not tax-deductible.

Must prove minimum €2,000 monthly income (or €24,000 annual). Higher than non-lucrative visa (€800/month). Ensures financial stability. Income from remote work or business.

Must work remotely for foreign employer or own foreign business. Cannot work for Bulgarian companies (different visa needed). Must maintain non-Bulgarian employment throughout stay.

Initial visa valid up to 12 months. Can potentially renew. Allows full year residence. Test Bulgaria before committing to permanent move.

Only non-EU/EEA citizens need Digital Nomad visa. EU citizens can move freely under EU law. Visa specifically designed to attract talent from outside Europe.

Staying 183+ days in Bulgaria within 12 months triggers tax residency. Then taxed on worldwide income at 10%. Must consider home country tax treaty. Potentially still favorable due to low rate.

If stay less than 183 days and maintain tax residency elsewhere, don't pay Bulgarian tax on foreign employment income. Only Bulgarian-source income taxed. Strategic planning possible.

Digital nomads working for foreign companies typically not subject to Bulgarian social security. May need to contribute in home country. Check totalization agreements.

Official conversion rate set by EU. All leva amounts automatically convert at this rate. Bank accounts, contracts, salaries all converted. One-time transition.

10% income tax stays 10%. 5% dividend tax stays 5%. Social contribution percentages unchanged. Only currency denomination changes. Same tax system, different currency.

Government and EU monitor to prevent unfair price increases during conversion. Dual display period (BGN and EUR) helps consumers. Transition designed to be smooth.

Companies trading with Eurozone face no currency risk. Eliminates hedging costs. Easier pricing and contracts. Major benefit for exporters and importers.

Strengthens Bulgaria's integration with EU financial system. Easier access to EU funding and investment. Reduces transaction costs. Boosts business confidence.

Expats from Eurozone countries no longer deal with currency conversion. Direct euro salary payments. Easier to compare costs with home country. Removes currency barrier.