Bulgaria Accounting Questions Answered

What is the corporate tax rate in Bulgaria?

Bulgaria's corporate income tax rate is 10% flat, the lowest in the EU. Dividends paid to shareholders are subject to a further 5% withholding tax, giving a combined effective rate of approximately 14.5% for founder-owned companies.

When is the corporation tax return due in Bulgaria?

The Bulgarian annual corporate income tax return under Article 92 of the Corporate Income Tax Act is filed electronically between 1 March and 30 June of the year following the tax year, with the tax paid by 30 June. Advance instalments are due during the year for companies above the net sales threshold of about €153,388.

What are advance corporate tax instalments in Bulgaria?

Bulgarian companies whose net sales revenue in the year before the previous year was above €153,387.56 pay advance corporate tax instalments. Companies up to €1,533,875.64 pay quarterly, on 15 April, 15 July and 1 December, with no Q4 instalment. Companies above that pay monthly.

What is the VAT rate in Bulgaria?

Bulgaria's standard VAT rate is 20%. A reduced rate of 9% applies to hotel accommodation, restaurants and catering, books, baby food, and certain tourist services. The VAT registration threshold is €51,130 annual taxable turnover. Monthly VAT returns are due by the 14th of the following month.

What are the VAT return deadlines in Bulgaria?

Bulgarian VAT-registered businesses must file a monthly VAT return (Vat14 form) by the 14th of the month following the reporting period. Payment of the VAT balance due is also required by the 14th. A VIES declaration for intra-EU supplies is due on the same date. There is no quarterly VAT option in Bulgaria.

How do I pay myself as a Bulgarian company owner?

Bulgarian company owners pay themselves via salary, dividends, or a combination. Dividends are the most tax-efficient method for founders: after 10% corporate tax, a 5% withholding tax applies, giving a combined effective rate of approximately 14.5%. Salary triggers mandatory social insurance contributions on top of the 10% personal income tax.

How does social insurance work in Bulgaria?

Bulgarian social and health insurance totals approximately 32.7% of gross insurable income, split between employer (18.92%) and employee (13.78%). Self-employed individuals and directors pay contributions on a minimum insurable income of €620.20 per month (from 1 August 2026), capped at €2,300 per month. Contributions fund the state pension, sick pay, and health insurance.

How do I register a company in Bulgaria?

You register a Bulgarian company (OOD for multi-owner Ltd, EOOD for single-owner) at the Bulgarian Registry Agency (BRRA) online at brra.bg. Minimum capital is €1. The process typically takes 3-7 working days and results in a BULSTAT/UIC 9-digit company number.

What business expenses can I claim in Bulgaria?

Bulgarian companies can deduct expenses that are wholly and exclusively incurred for business purposes from taxable profit. Common deductible expenses include salaries, rent, utilities, professional fees, marketing, and depreciation. Non-deductible items include fines and personal expenses, and representation costs carry a separate 10% expenses tax.

Do I need to file annual accounts in Bulgaria?

Yes. Bulgarian companies file annual financial statements with the Registry Agency (Trade Register) by 30 September of the year after the financial year, using application form G2. The Registry Agency says no state fee is charged. A statutory audit is required if a company meets two of three thresholds: about €2.05 million in assets, about €4.09 million in revenue, or 50 employees.