Bulgaria Tax Rates
Bulgaria offers the EU's lowest flat income tax rate at 10% and a flat 10% corporate tax rate, making it one of the most tax-competitive countries in Europe. The country features a 20% standard VAT and relatively modest social security contributions. Bulgaria is preparing to join the eurozone and has been attracting outsourcing, IT, and remote working businesses.
Top Income Tax Rate
10%
Corporate Tax Rate
10%
VAT / Sales Tax
20%
Capital Gains Tax
10%
Detailed Tax Information
Income Tax Brackets
Bulgaria applies a flat 10% income tax on all personal income with no tax-free allowance. This is the lowest flat income tax rate in the EU. The simplicity and low rate have attracted remote workers and digital nomads. Employment, self-employment, rental, and investment income are all taxed at 10%.
| Income Range | Tax Rate |
|---|---|
| лв 0+ | 10% |
Corporate Tax
Bulgaria levies a flat 10% corporate income tax, the lowest in the EU along with its personal income tax rate. A patent tax (simplified lump-sum regime) is available for certain small businesses and self-employed individuals. Municipality-specific patent fees vary.
Standard Rate
10%
Capital Gains Tax
Capital gains are taxed at the flat 10% rate. Significant exemptions exist for real estate held as primary residence for 3+ years and for listed securities traded on regulated EU markets.
Rate
10%
VAT / Sales Tax
Bulgaria applies a standard VAT (DDS - данък върху добавената стойност) rate of 20%, with a reduced rate of 9% for tourism and essential goods.
Standard Rate
20%
Cryptocurrency Tax
Cryptocurrency gains in Bulgaria are taxed at the flat 10% income tax rate. If traded on a regulated EU market, gains may be exempt. Otherwise, gains from crypto disposals are taxable as capital gains or other income at 10%. Mining income is treated as business income at 10%.
Tax Treaties
Bulgaria has approximately 70 double taxation treaties. As an EU member, Bulgaria's treaty network covers major European and global trading partners.
Treaty Network
70
Double taxation agreements
Major treaty partners:
Key Details
Relocate to Bulgaria
See how much you could save by moving here from your current country.
+$582
Tax in United States
$24K
24.4% effective
Tax in Bulgaria
$24K
23.8% effective
You Save
2.4%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
