Dividend Tax in Bulgaria
Rates by shareholder
| Shareholder | Tax on a dividend from a Bulgarian company |
|---|---|
| Individual, resident or not | 5% final tax; a treaty can lower it for non-residents |
| Bulgarian company | None |
| Company resident in the EU or EEA | None, unless it is a hidden profit distribution |
| Other foreign company | 5%, or lower under a tax treaty |
| Bulgarian non-profit body or municipality | 5% |
Source: PwC Worldwide Tax Summaries: Bulgaria, corporate, withholding taxes (reviewed 2 August 2026); Ministry of Finance: Withholding tax; Innovires Legal: Dividend tax in Bulgaria 2026 (9 April 2026)1,2,3
The same rules and the 5% rate apply to liquidation shares. For an individual the tax is on the amount above the documented cost of the shares. Treaty rates and how to claim them are on Double Tax Treaties.2,3
The 2026 draft budget proposed raising the rate to 10%, but it was not adopted; the 2025 budget was extended and 5% applies for the whole of 2026.3,4
From profit to dividend
| Step | Amount |
|---|---|
| Profit before tax | €100,000 |
| Corporate tax at 10% | −€10,000 |
| Profit after tax, distributed | €90,000 |
| Dividend tax at 5% | −€4,500 |
| Paid to the owner | €85,500 |
Source: Fenchell: Dividends in Bulgaria, taxation and withholding (updated 8 June 2026)4
That is 14.5% in Bulgarian tax on the original profit. A shareholder resident in another country may be taxed on the dividend there too, with a credit for the Bulgarian tax under the treaty. Corporate tax is covered on Corporate Tax.4
Paying a dividend
- Adopted accounts: the dividend comes from profit in adopted annual financial statements, after any losses of earlier years are covered.
- A written decision: in an OOD the general meeting decides; in an EOOD the sole owner decides in writing. The date of the decision sets the tax deadline, not the date of payment.
- Withholding: the company withholds the 5% and pays it to the National Revenue Agency with a declaration, by the end of the month after the quarter of the decision.
- Information return: dividends paid to individuals are reported once more in an annual return due by the end of February of the following year.
Source: FirmaBulgaria: Bulgaria dividend tax 2026 (updated 23 September 2026); PwC Worldwide Tax Summaries: Bulgaria, corporate, withholding taxes (reviewed 2 August 2026)5,1
Payments to owners that are not properly recorded as salary, expenses, loans or dividends may be treated as hidden profit distributions, taxed with corporate tax, dividend tax and a 20% penalty.4
Deadlines in 2026
| Decision to distribute taken in | Declaration and payment due |
|---|---|
| January to March 2026 | 30 April 2026 |
| April to June 2026 | 31 July 2026 |
| July to September 2026 | 2 November 2026 |
| October to December 2026 | 1 February 2027 |
| Information return for 2026 dividends | 1 March 2027 |
Source: FirmaBulgaria: Bulgaria dividend tax 2026 (updated 23 September 2026)5
Foreign dividends of Bulgarian residents
- Bulgarian tax residents pay the same 5% final tax on the gross amount of dividends from foreign companies and funds.
- Tax withheld abroad is credited up to 5% of the gross dividend. If it was less, the difference is paid in Bulgaria; if it was more, nothing more is due, but the excess is not refunded.
- Foreign dividends are declared in Annex 8 of the annual return, which is due with any tax by 30 April of the following year.
- Income kept inside an accumulating fund is not taxed while the units are held; the gain is taxed, or exempt, when they are sold.
Source: Innovires Legal: Dividends from foreign companies and ETFs 2026 (21 April 2026); PwC Worldwide Tax Summaries: Bulgaria, individual, income determination6,7
Who counts as resident is explained on Tax Residency, and gains on shares on Capital Gains Tax.
Frequently Asked Questions
What is the dividend tax rate in Bulgaria in 2026?
The dividend tax in Bulgaria is 5% in 2026, a final tax withheld by the company paying the dividend. A proposal in the 2026 draft budget to raise it to 10% was not adopted.
Are dividends to an EU parent company taxed in Bulgaria?
No. Dividends from a Bulgarian company to a company resident in the EU or EEA are exempt from Bulgarian withholding tax, except for hidden profit distributions. Dividends to other Bulgarian companies are not taxed either.
How much tax do I pay to take profit out of a Bulgarian company?
From €100,000 of profit, the company pays €10,000 corporate tax and withholds €4,500 dividend tax on the €90,000 distributed, leaving €85,500 for the owner. That is 14.5% in Bulgarian tax, before any tax in the owner’s country of residence.
When is dividend tax paid in Bulgaria?
The company declares and pays the 5% tax by the end of the month after the quarter in which the decision to distribute was taken. For a decision in July to September 2026, that is 2 November 2026.
How are foreign dividends taxed for Bulgarian residents?
Bulgarian tax residents pay 5% on the gross amount of foreign dividends, with a credit for tax withheld abroad up to 5%. They declare them in Annex 8 of the annual return, due by 30 April of the following year.
Sources
- PwC Worldwide Tax Summaries: Bulgaria, corporate, withholding taxes (reviewed 2 August 2026)
- Ministry of Finance: Withholding tax
- Innovires Legal: Dividend tax in Bulgaria 2026 (9 April 2026)
- Fenchell: Dividends in Bulgaria, taxation and withholding (updated 8 June 2026)
- FirmaBulgaria: Bulgaria dividend tax 2026 (updated 23 September 2026)
- Innovires Legal: Dividends from foreign companies and ETFs 2026 (21 April 2026)
- PwC Worldwide Tax Summaries: Bulgaria, individual, income determination
Figures checked 15 October 2026. Prepared by InvestBulgaria for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
