Taxes in Bulgaria 2026 – rates, social security and deadlines
All the main Bulgarian taxes for companies, the self-employed and individuals in one place – with the social security rates, the key deadlines, the bank accounts of the tax office and the changes planned for 2027.
In short. Bulgaria has a flat 10% corporate income tax and a flat 10% personal income tax. Dividends are taxed at 5%. The standard VAT rate is 20% and VAT registration is mandatory above €51,130 turnover in a calendar year. Social security on salaries is 13.78% for the employee and 18.52% plus 0.4% – 1.1% for the employer, on up to €2,300 a month. The currency is the euro since 1 January 2026.
Main tax rates in 2026
| Tax | Rate | Notes |
|---|---|---|
| Corporate income tax | 10% | On the taxable profit of companies (EOOD, OOD, AD). |
| Personal income tax | 10% | Flat rate on salaries, freelance income, rent and other income. |
| Sole trader (ET) | 15% | On the profit after social security. |
| Dividends | 5% | Withheld by the paying company. Dividends to companies from the EU/EEA and between Bulgarian companies are generally exempt. |
| VAT – standard rate | 20% | All taxable supplies, including restaurants and catering. |
| VAT – reduced rate | 9% | Hotel and similar accommodation, books and newspapers, baby food and some baby hygiene products. |
| VAT – zero rate | 0% | Exports outside the EU, intra-EU supplies of goods to VAT-registered buyers, international transport. |
| Withholding tax | 10% | On some payments to foreign persons – such as interest, royalties and certain fees – unless a tax treaty or EU directive reduces it. |
Social security in 2026
| Who | Rate | Base |
|---|---|---|
| Employee (deducted from the gross salary) | 13.78% | The gross salary, up to €2,111.64 a month until 31.07.2026 and €2,300 from 01.08.2026. |
| Employer (on top of the gross salary) | 18.52% + 0.4% – 1.1% | The same base. The work-accident rate depends on the main activity. |
| Self-insured (freelancers, sole traders, owner-managers) | 27.8% / 31.3% | 31.3% with sickness and maternity cover. Monthly base from €620.20 (from 01.08.2026; €550.66 before) to €2,300. |
The minimum wage in 2026 is €620.20 a month (€3.74 an hour). Income tax on a salary is 10% of the gross salary minus the employee's contributions. Try our Bulgaria salary calculator.
Personal income tax
- Tax residence. You are usually a Bulgarian tax resident if you spend more than 183 days in Bulgaria in any 12-month period or if the centre of your vital interests is in Bulgaria. Residents are taxed on their worldwide income; non-residents only on income from Bulgaria.
- Annual return. Filed from 10 January to 30 April of the following year. Filing online and paying by 31 March gives a 5% discount on the remaining tax, up to €255.65.
- Freelancers. Self-employed professionals deduct a standard 25% for expenses (40% for some professions, such as authors) and pay 10% tax on the rest, plus social security.
- Foreign dividends and shares. Dividends from abroad are taxed at 5% in Bulgaria, with credit for the foreign tax withheld. Gains from shares are generally taxed at 10%, with exemptions for some EU-regulated markets.
Rental income from property in Bulgaria
- Residents: 10% tax on the rent after a standard 10% deduction for expenses – 9% of the rent in effect. If the tenant is an individual, you pay advance tax for the first three quarters by 30 April, 31 July and 31 October and the rest with the annual return. If the tenant is a company, it withholds the tax.
- Non-residents: rent from property in Bulgaria is taxed with a 10% final tax on the gross rent, without the 10% deduction. EU/EEA residents can choose to have the tax recalculated with an annual return.
- Short-term holiday lets are a tourist activity with their own registration and tourist tax – ask us before you start.
VAT registration
- Threshold: €51,130 of taxable turnover in a calendar year. Apply within 7 days after you exceed it.
- Services from or to the EU: a company that buys services from abroad (for example online ads) or sells services to businesses in other EU countries must register at least 7 days before the first such transaction, whatever its turnover.
- Online sales to EU consumers above €10,000 a year: VAT of the buyer's country, usually through the OSS scheme.
- Returns: monthly, by the 14th of the following month, together with the sales and purchase ledgers.
Key deadlines
| Deadline | What |
|---|---|
| 14th of each month | VAT return and VIES return for the previous month |
| 25th of each month | Payroll and social security declarations, payment of contributions and tax on salaries for the previous month |
| End of the month after each quarter | Tax on dividends declared in the quarter; advance tax on rent paid by individuals |
| 30 April | Annual personal income tax return and payment (5% discount if filed online and paid by 31 March) |
| 30 June | Annual corporate income tax return and payment; declaration of a company with no activity |
| 30 September | Annual financial statements published in the Commercial Register |
If a deadline falls on a weekend or a public holiday, it moves to the next working day.
Bank accounts of the tax office (NRA) for payments
Taxes and social security are paid to the National Revenue Agency at the Bulgarian National Bank, BIC BNBGBGSD. The accounts are the same for the whole country since 2 October 2023:
| Payment | IBAN |
|---|---|
| Taxes – VAT, corporate tax, income tax, dividend tax, withholding tax | BG88 BNBG 9661 8000 1950 01 |
| State social security (pension, sickness and maternity, unemployment, work accidents) | BG97 BNBG 9661 8000 1120 01 |
| Health insurance | BG16 BNBG 9661 8000 1121 01 |
| Supplementary pension funds (second pillar) | BG65 BNBG 9661 8000 1118 01 |
| Enforced collection by the NRA | BG34 BNBG 9661 8000 1950 03 |
VAT under the OSS and IOSS schemes, local taxes on property and vehicles, and fines are paid to different accounts. Source: National Revenue Agency, checked on 21.10.2026.
Changes planned for 2027 – drafts
As of the last check these are drafts, not law yet:
- Minimum wage €660 a month (€3.98 an hour) from 1 January 2027 – draft government decree.
- VAT registration threshold – €75,000 in the published draft; after the tripartite council on 23.10.2026 the Ministry of Finance announced a gradual increase: €60,000 for 2027, €70,000 for 2028 and €75,000 for 2029.
- E-invoices mandatory from 1 January 2028 for VAT-registered suppliers established in Bulgaria – draft.
- Tax losses carried forward for 10 years instead of 5, up to 70% of the profit each year – draft.
- Fixed-asset threshold €1,000 instead of €357.90 – draft.
- Child tax relief increased – draft.
The rates of corporate tax (10%), income tax (10%), dividend tax (5%) and VAT (20% and 9%) do not change in the published proposals.
Questions
What is the corporate tax rate in Bulgaria?
10% of the taxable profit – one of the lowest in the EU. Dividends paid to individuals are taxed at a further 5%.
What is the income tax rate in Bulgaria?
A flat 10% for individuals, on salaries, freelance income, rent and most other income. Sole traders pay 15% on their profit.
When must a company register for VAT in Bulgaria?
When its taxable turnover exceeds €51,130 in a calendar year – within 7 days. A company that buys services from abroad or sells services to businesses in other EU countries must register before the first such transaction, whatever its turnover.
How much social security is paid on a salary in Bulgaria?
13.78% by the employee and 18.52% plus 0.4% – 1.1% by the employer, on the gross salary up to €2,300 a month (from 1 August 2026).
Which bank account do I use to pay taxes in Bulgaria?
Taxes are paid to the NRA account at the Bulgarian National Bank BG88 BNBG 9661 8000 1950 01 (BIC BNBGBGSD). Social security and health insurance have separate accounts – see the table above.
Sources: Corporate Income Tax Act, Personal Income Tax Act, VAT Act, Social Security Code, Health Insurance Act, State Social Security Budget Act 2026, Accountancy Act, National Revenue Agency (nra.bg), drafts on strategy.bg. General information as of the date of the last check – not tax advice.
Not sure which rules apply to you?
Tell us about your company or your income – we will tell you what you need to file and pay, in English.