Tax Consulting in Bulgaria

The Personal income tax rate is 10% on taxable income. The individuals, considered Bulgarian tax residents are the ones that have stayed in Bulgaria for more than 183 days in any 12-month period or the ones whose centre of interests is in Bulgaria determined in view of their personal and economic ties to the country, for example factors like permanent address in Bulgaria, family, employment, possession of property, etc.

The taxable income includes monetary income, as well as benefits received in-kind. Bulgarian tax residents are taxed on their worldwide income, while non-residents are taxed only on their Bulgarian-sourced income.

Certain types of income are exempt from taxation, including capital gains from the disposal of shares on a regulated Bulgarian / EU / EEA market, interest on deposits in EU/EEA based banks or branches of non-EU banks, income from disposal of certain real estate, etc.

Tax deductions apply in some cases, including mandatory social security and health insurance contributions, statutory deductions for freelancers, for rental income, etc., voluntary personal insurance up to certain limits, certain donations and other specific situations (disability, etc)

The annual personal income tax return has to be submitted by 30 April of the following year (the tax year coincides with the calendar year). The tax has to be paid by the same deadline. A 5% reduction of the outstanding tax can be applied if the annual tax return is filed and the tax is paid before 10 February of the following year; or the annual tax return is submitted electronically.

Individuals are not obliged to file annual tax returns if they have received only employment income for which an annual reconciliation of the tax liability was made by the employer (which was their only employer as at the end of the year), non-taxable income and/or income subject to one-off tax.

Future Tax cosulting in Bulgaria can be received here.