Key rates at a glance
- Corporate income tax: 10%
- Dividend tax: 5%, withheld by the company (dividends to EU and EEA companies are generally not taxed)
- Personal income tax: 10% flat
- VAT: 20% standard rate; 9% for certain supplies such as hotel accommodation
- VAT registration threshold: EUR 51,130 of taxable turnover in a calendar year
- Withholding tax on interest, royalties and certain services paid abroad: 10%, often reduced by a tax treaty or EU rules
- Social and health contributions: about 32.7% of gross salary in total, up to EUR 2,300 a month of insurable income
- Minimum monthly wage: EUR 620.20
- Property and vehicle taxes: set by each municipality
From company profit to the owner
This is why we say 14.5%. A company that makes EUR 100,000 of taxable profit pays EUR 10,000 corporate tax. If the remaining EUR 90,000 is paid out as a dividend to an individual, the dividend tax is EUR 4,500. The owner receives EUR 85,500, so the total tax on the way from profit to pocket is 14.5%.
How owners pay themselves, through salary, dividends or both, changes the result. Salary or dividends?
Payroll in short
Of the roughly 32.7% social and health contributions, the employer pays about 18.9% and the employee about 13.8%, on salary up to EUR 2,300 a month (from 1 August 2026; EUR 2,111.64 before). The employee also pays 10% income tax, withheld by the employer. Payroll in Bulgaria, with an example
VAT in short
A company must apply for VAT registration within 7 days of its taxable turnover passing EUR 51,130 in a calendar year, and it is treated as registered from the day after. VAT returns are monthly. A draft law published in September 2026 proposes raising the threshold to EUR 75,000 from 2027; it is not yet law. When to register for VAT
Dates
The tax calendar of a Bulgarian company.
- Every month, by the 14th: VAT return and payment
- Every month, by the 25th: payroll contributions, income tax and declarations
- By the end of the month after each quarter: tax withheld on dividends paid to individuals
- By 30 June: annual corporate income tax return and payment
- By 30 September: annual financial statements published in the Commercial Register
Since 1 January 2026 all returns and payments are in euro.
Questions
What foreign owners ask about Bulgarian taxes.
Is the corporate tax in Bulgaria really 10%?
Yes. The corporate income tax rate is a flat 10% of the taxable profit, one of the lowest in the European Union.
Do foreign-owned companies pay the same rates?
Yes. A Bulgarian company pays the same taxes whether its owners are Bulgarian or foreign.
Is there tax on dividends paid to a foreign owner?
Dividends paid to individuals, Bulgarian or foreign, are taxed at 5%, withheld by the company. A double tax treaty can reduce this, and dividends paid to companies from the EU or EEA are generally not taxed in Bulgaria.
Is personal income tax progressive?
No. Personal income tax in Bulgaria is a flat 10%, whatever the amount of income.
When does a company have to register for VAT?
When its taxable turnover in Bulgaria passes EUR 51,130 within a calendar year. The application is due within 7 days and VAT applies from the day after the threshold is passed. A company can also register voluntarily. More on VAT registration
Are amounts still in leva?
No. Since 1 January 2026 Bulgaria uses the euro, and all tax returns and payments are in euro. Older amounts converted at the fixed rate of 1.95583 leva per euro.
What do these numbers mean for your company?
Rates are only the start. In a free call we look at your situation and show you what is possible. The information here is general and current as of November 2026.
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