In this article, we have prepared a brief overview of taxation in Bulgaria as general information. To get a complete, accurate answer to your specific questions, we suggest contacting our specialists for professional (possibly paid) advice.

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National currency: Bulgarian lev. Please note that in this article we provide examples of taxation for residents and non-residents of Bulgaria. Explanation of how to become a RESIDENT of Bulgaria: Any foreigner can become a tax resident of Bulgaria in order to avoid double taxation, subject to certain conditions. This will allow you to pay income tax in Bulgaria, which is only 10%. One of the two conditions is either a long-term residence permit (residence permit) or a permanent (long-term) residence permit (permanent residence/DVR). A foreigner who has received a long-term residence permit (residence permit) is assigned a personal number for a foreigner – LNC. After obtaining a residence permit and after staying in Bulgaria for more than 183 days, a foreigner can obtain a tax resident certificate. A foreigner who has received a permanent (long-term) residence permit (permanent residence/DVR) in Bulgaria is assigned a single civil number (EGN) and, immediately after obtaining this permit, the foreigner can obtain a tax certificate resident. A resident of Bulgaria (a foreigner) can open bank accounts in any EU country and enjoy the protection of his personal data in accordance with the EU GDPR.

INDIVIDUALS

Personal income tax (PIT)in Bulgaria is lower than in the rest of the EU… Individuals, both RESIDENTS and NON-RESIDENTS, are subject to income tax on fixed rate of 10%. For RESIDENTS of Bulgaria, it does NOT matter in which country the income is received. And for NON-RESIDENTS, it has: non-residents pay 10% personal income tax if they make a profit on the territory of Bulgaria. Taxable income includes: – salary payments, – profit from entrepreneurial activity, – lottery winnings, – income from renting out apartments, – interest on term deposits, – license fees, royalties and dividends received by the founders and shareholders of Bulgarian and foreign companies operating in Bulgaria. In some cases, the amounts of royalties, royalties and royalties to residents of the European Union are subject to taxation at a rate of 5%. Dividends: Income from dividends paid by Bulgarian companies is taxed at the rate of 5% for individuals, unless the lower rate is determined by the terms of the relevant intergovernmental agreement. Dividends received by local companies from other Bulgarian, EU or EEA (European Economic Area) partner companies are not subject to taxation. Property tax. Are you going to buy an apartment or a house? The rate will be between 0.01 and 0.45% of the value of your property in Bulgaria. If you live permanently in a house or apartment, the rate will be lower. If the property belongs to a disabled person, the rate is 75% lower. Road tax. Road tax is paid by all vehicle owners: for cars, buses, trailers, self-propelled vehicles. Its amount is determined by the weight of the car. Rate: 10 leva per 1 ton (per year). Transport tax. In Bulgaria, all vehicles are taxed: cars and trucks, trailers, buses, tractors, ships and steamships, airplanes, etc. When calculating the cost of transport tax, you need to take into account the environmental category, and the address of registration of the car, and the year of manufacture, and the presence of a catalytic converter. For an approximate calculation of transport tax, you can use a calculator. http://www.calculator.bg/1/avtomobil_danak.html