What is Personal Income Tax (Bulgaria)?
Bulgarian Personal Income Tax is a flat 10% on most income (employment, freelance, business). One of the lowest rates in the EU. Dividend income from a Bulgarian company is taxed at a reduced 5% withholding tax.
Current Rate (Calendar year; annual return Form 50 due 30 April)
10% flat (employment, business income); 5% on dividends
Example
An employee earning BGN 36,000 annually pays BGN 3,600 personal income tax (10%) plus social insurance contributions. A dividend of BGN 100,000 from a Bulgarian OOD attracts BGN 5,000 withholding tax (5%).
Related terms
Bulgarian social insurance covers pensions, healthcare, unemployment, and sickness. Total contributions are approximately 32–33% of gross salary, split between employer (~19%) and employee (~14%). Contributions are subject to a maximum monthly insurable income (BGN 3,750 in 2024).
Bulgarian Corporate Income Tax is a flat 10% on company profits — the lowest in the European Union (tied with Hungary at 9%). Applied uniformly to all Bulgarian-resident companies regardless of size. Filed annually via Form 1010A with the National Revenue Agency (NRA).
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