Can I Claim Business Travel as a Business Expense in Bulgaria?
Yes. Domestic and international business travel is a cost of earning taxable profit, and the profit is taxed at a flat 10%. Per diems (daily allowances) are tax-free up to statutory limits when travelling on business.
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What National Revenue Agency (NRA / НАП) says
Travel costs incurred for business purposes are deductible. Per diems for business travel are tax-free up to: about €20.45/day for domestic travel (BGN 40 before 2026, converted at the fixed rate; verify the current euro figure); varying rates for international travel set by the Council of Ministers.
When you can claim
- Airfare, train and taxi for business trips
- Hotel accommodation, where accommodation carries 9% VAT
- Per diems within the statutory limit, tax-free for the employee and a cost for the company
- Conference and trade show fees
- Rental car fees for a business trip, with the VAT rules checked first
When you cannot claim
- Personal vacation days mixed in, which must be apportioned
- Spouse or family travel without a business reason
- Per diems above the statutory limit, where the excess is taxable
- Trips with no record of purpose and dates
- Fines incurred during travel
Good to know
Pro tip: Keep tickets, boarding passes, hotel invoices and the trip order showing the purpose and dates. A short note on who attended and why turns a travel receipt into a documented business cost. Book hotel stays on an invoice that names the company so the 9% VAT can be recovered where the rules allow.
Important: The per diem limit is set by rules that depend on the destination. Check the current euro figure for the country you visit before you pay a daily allowance, because the part above the limit is taxable income for the employee. Input VAT on business hotel and transport invoices follows the normal VAT rules.
Related expenses
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