Bulgaria boasts one of the lowest tax regimes in the European Union, making it a prime destination for businesses and individuals. Key features include:
Tax Rates
- Income Tax: A flat rate of 10% for both individuals and corporations, significantly below the EU average of 20–30%.
- VAT: Standard rate of 20%, aligning with the EU average of ~21%.
Tax Residency
- Individuals qualify as tax residents if they:
- Hold a permanent address in Bulgaria.
- Reside in the country for over 183 days within a calendar year.
- Are posted abroad by Bulgarian entities (e.g., employees on international assignments).
Tax Year & Deadlines
- The tax year follows the calendar year (January 1 – December 31).
- Corporate tax returns must be filed by March 31 of the following year.
Double Taxation Treaties (DTTs)
Bulgaria has established double taxation treaties with over 65 countries, preventing dual taxation on income and fostering international business. This network enhances cross-border investment and trade by simplifying fiscal obligations. Key treaty partners include:
Europe: Albania, Austria, Belgium, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Türkiye, UK, Ukraine.
Asia: China, India, Indonesia, Israel, Japan, Kazakhstan, Kuwait, Qatar, Saudi Arabia, Singapore, South Korea, UAE, Vietnam.
Americas: Canada, United States.
Africa: Egypt, Morocco, South Africa.
Other: Australia, New Zealand, Russia.
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