Taxation

Working in Europe | Taxation/salaries | Bulgaria

Taxation

Taxes

Bulgarian taxation system is considered to be simple. There is only one general flat rate of 10% for both, the personal income tax and the corporate income tax. This is a major difference compared to most European countries and provides for the creation of a favorable business climate in the country.

Personal income tax as well as social security/ pension payments are withheld from the salary by the employer. The rate of 10% for personal income tax is applicable to all levels of salaries (there is no minimal salary free of taxes).
Flat rate of 10 % is applied on the profit of legal persons and on the income of resident/ non-resident legal persons from a source inside the Republic of Bulgaria.
Bulgaria has signed such treaties with many countries. Some of these agreements provide more favourable conditions to researchers so please check the agreement with your home country. Bulgarian treaties in force.
This is indirect tax with a rate of 20% on most goods and services. Exceptions: selected services - like the 9 % VAT on tourist services; 0% VAT rate on higher education fees and on insurance services.
Municipalities can levy local taxes and fees such as property tax, transport vehicle tax, garbage fee, succession tax; tax on acquisition of property for consideration, etc. Local taxes and fees are collected by the municipal administration.

Income Taxes on Natural Persons Act
Corporate Income Tax Act
Local Taxes and Fees Act
Value Added Tax Act
ORDINANCE № 12/ 24.08.2006 (on the Refund of Paid Value Added Tax to Non-Taxable Natural Persons Who Are Not Established on the Community Territory