Tax Deductions (Limited) – Bulgaria
Bulgaria offers fewer deductions than many EU countries because 10% flat rate is already very low. Philosophy: keep system simple, keep rates low, minimize deductions. Main deductions focus on long-term savings (pension, insurance) and charity. No mortgage interest deduction unlike many countries.
Tax Deductions (Limited)
Bulgaria offers fewer deductions than many EU countries because 10% flat rate is already very low. Philosophy: keep system simple, keep rates low, minimize deductions. Main deductions focus on long-term savings (pension, insurance) and charity. No mortgage interest deduction unlike many countries.
Available Deductions
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.
No Deductions For
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.
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