Personal Income Tax in Bulgaria
Who pays
Tax residents pay on their worldwide income; non-residents only on income from Bulgaria. You are resident if you spend more than 183 days in Bulgaria in any 12 months, or if your centre of vital interests (family, work, property) is here. A tax treaty can override these rules.2,4
How each kind of income is taxed
| Income | Rate | Allowance for expenses |
|---|---|---|
| Employment | 10% | None; social contributions are deducted first |
| Freelance and civil contracts | 10% | 25% of gross income |
| Lawyers and royalties | 10% | 40% |
| Farmers | 10% | 60% |
| Rent | 10% | 10% |
| Dividends | 5% | None; withheld at source |
| Interest on EU and EEA bank deposits | 0% | — |
| Interest from banks outside the EU and EEA | 10% | — |
Source: PwC Worldwide Tax Summaries: Bulgaria, individual deductions; Deloitte: International Tax, Bulgaria Highlights 2026; PwC Worldwide Tax Summaries: Bulgaria, individual income determination5,1,6
Allowances and deductions
| One child | €3,067.75 off the annual tax base |
|---|---|
| Two children | €6,135.50 |
| Three or more children | €9,203.25 |
| Child with a disability | €6,135.50 per child |
| Mortgage interest for young married couples | On the first €51,129.19 of the loan |
| Repairs to a home in Bulgaria | Up to €1,022.58 |
| Paying by card and bank transfer | 1% of the tax, up to €255.65 |
| Donations | Within set limits, up to 65% of the tax base in total |
Source: PwC Worldwide Tax Summaries: Bulgaria, individual deductions5
The child allowance can be taken monthly through the employer. All reliefs require that you owe no public debts when you file.5
Returns
Employers withhold the tax every month. If employment is your only income and the tax withheld is right, you do not need to file. Otherwise the annual return is due by 30 April of the following year. Spouses file separately.1
Frequently Asked Questions
How is personal income taxed in Bulgaria?
In Bulgaria, employment, business, rental and most other income is taxed at a flat 10% after social contributions. Dividends are taxed at 5%; interest on EU and EEA bank deposits is tax-free, while interest from banks outside the EU and EEA is taxed at 10%.
When do I become a tax resident in Bulgaria?
You are a tax resident in Bulgaria if you spend more than 183 days in the country in any 12 months, or if your centre of vital interests, such as your family, work or property, is there. A tax treaty can override these rules.
What child tax allowances are available in Bulgaria?
Bulgaria offers an annual tax-base allowance of €3,067.75 for one child, €6,135.50 for two children and €9,203.25 for three or more children. The allowance for a child with a disability is €6,135.50 per child.
When is the Bulgarian personal income tax return due?
If employment is your only income and the tax withheld is correct, you do not need to file a personal income tax return in Bulgaria. Otherwise, the annual return is due by 30 April of the following year, and spouses must file separately.
Sources
- Deloitte: International Tax, Bulgaria Highlights 2026 (PDF)
- PwC Worldwide Tax Summaries: Bulgaria, individual residence
- PwC Worldwide Tax Summaries: Bulgaria, individual, significant developments
- Legal 500: Bulgaria Tax Card 2026
- PwC Worldwide Tax Summaries: Bulgaria, individual deductions
- PwC Worldwide Tax Summaries: Bulgaria, individual income determination
Figures checked 13 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.
