Bulgaria's Simple Flat Tax System – Bulgaria

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.