Low Taxes in Bulgaria
Corporate tax in Europe
This page compares Bulgaria’s taxes with the rest of Europe. For every rate, deadline and treaty, see Taxes in Bulgaria: tax rates in full.
Източник: Tax Foundation: Corporate income tax rates in Europe, 20262
Groups with revenue of 750 млн. € or more pay a minimum effective rate of 15% under the EU Pillar Two rules, so the low rate matters most to small and medium-sized companies and to groups below that size.1
The main rates
| Corporate income tax | 10%, for branches too |
|---|---|
| Personal income tax | 10% flat, no brackets |
| Dividends | 5% to individuals and non-EU companies; 0% to EU and EEA companies |
| Interest and royalties to non-residents | 10%, lower under treaties or EU directives |
| VAT | 20%; 9% on hotel stays, books and baby products |
| VAT registration | Compulsory above 51 130 € of turnover in a calendar year |
| Tax treaties | About 70 |
Източник: Deloitte: International Tax, Bulgaria Highlights 2026; Wise: Cost of starting a business in Bulgaria (VAT threshold from 1 January 2026); PwC Worldwide Tax Summaries: Bulgaria, corporate, other taxes (VAT registration from 2026)1,3,8
Social contributions
Employers pay 18,92% to 19,62% and employees 13,78% for social security and health insurance, but only on pay up to the maximum insurable income of 2 300 € a month from 1 август 2026. Above that amount only the 10% income tax applies, which makes highly paid specialists comparatively cheap to employ.4,5
Tax incentives
- Manufacturers investing in municipalities where unemployment is at least 25% above the national average can keep up to 100% of their corporate tax if they reinvest it there.
- Certified investment projects can have employer social contributions for new jobs refunded for 12 months, or up to 24 months in high-unemployment areas.
- Tax losses can be carried forward for five years.
Източник: Ministry of Finance: Corporation tax and tax reliefs; Ministry of Economy, Investments and Industry: Investment promotion measures; Deloitte: International Tax, Bulgaria Highlights 20266,7,1
Често задавани въпроси
What is the corporate tax rate in Bulgaria in 2026?
Bulgaria’s standard corporate income tax rate is 10% in 2026, including for branches. Groups with revenue of €750 million or more are subject to a 15% minimum effective rate under EU Pillar Two rules.
Is personal income tax in Bulgaria a flat rate?
Bulgaria charges personal income tax at a flat rate of 10%, with no brackets; the standard corporate income tax rate is also 10%.
How are dividends taxed in Bulgaria?
Bulgaria taxes dividends at 5% for individuals and non-EU companies, while dividends paid to EU and EEA companies are taxed at 0%.
How much are social security contributions in Bulgaria, and what is the monthly cap?
Employers pay 18.92% to 19.62% and employees pay 13.78% in social security and health insurance contributions, on pay up to the maximum insurable income of €2,300 a month from 1 August 2026. Above that cap, only the 10% income tax applies.
What is the VAT registration threshold in Bulgaria in 2026?
VAT registration in Bulgaria is compulsory above €51,130 of turnover in a calendar year from 1 January 2026. The standard VAT rate is 20%, with a reduced rate of 9% for hotel stays, books and baby products.
Can manufacturers get corporate tax relief in Bulgaria?
Manufacturers investing in municipalities where unemployment is at least 25% above the national average can retain up to 100% of their corporate tax if they reinvest it there. Certified investment projects can also receive refunds of employer social contributions for new jobs.
Източници
- Deloitte: International Tax, Bulgaria Highlights 2026 (PDF)
- Tax Foundation: Corporate income tax rates in Europe, 2026
- Wise: Cost of starting a business in Bulgaria (VAT threshold from 1 January 2026)
- PwC Worldwide Tax Summaries: Bulgaria, individual, other taxes
- National Assembly: Social security budget for 2026
- Ministry of Finance: Corporation tax and tax reliefs
- Ministry of Economy, Investments and Industry: Investment promotion measures
- PwC Worldwide Tax Summaries: Bulgaria, corporate, other taxes (VAT registration from 2026)
Данните са проверени 13 октомври 2026. Изготвено от InvestBulgaria с общоинформационна цел. Не е инвестиционен, данъчен или правен съвет; потвърдете подробностите с квалифициран консултант, преди да предприемете действия.
