Bulgaria is situated in the center of the Balkan Peninsula and provides professionally pleasant and appropriate for business development geographic and geo-political location. Bulgaria has established strong business communications with its neighbouring countries which would contribute to the attainment of your business objectives and future development concepts. Bulgaria has various advantages to offer to every business-oriented mind.

Taxation in Bulgaria

Bulgaria has the lowest taxation rates within the EU. Our tax laws are strictly synchonized with the European Law and the case law of the European Court of Justice (ECJ).

Personal Income Tax

Bulgaria imposes personal income tax with a 10% flat rate on the worlwide income of its residents.

Benefits for EU residents

Residents of EU and EEA member states have the right to use the exemptions available to local individuals.

In some cases there is a possibility for EU and EEA residents to be subject to net taxation for certain types of incomes.

Corporate Income Tax

Bulgaria offers a flat-rate taxation for legal entities. The corporate tax rate is 10%. Taxes are imposed on the worldwide income of companies incorporated in Bulgaria.

Subject to tax are local companies registrated in Bulgaria, foreign legal entities with permanent establishment in Bulgaria as well as non-personalized establishments treated as entities only for tax purposes.

Witholding Tax

Bulgaria levies witholding tax on various incomes. Witholding taxation covers royalties, capital gains, technical services, dividents, interests, etc.The main rate of the Bulgarian witholding tax is 10%. Bulgaria levy 5% witholding tax on dividents and liquidation quotas.

Tax on Expenses

Legal entities in Bulgaria are subject to tax on some types of expenses. A final 10% flat-rate tax is levied on the following expenses:

Alternative Types of Taxation

Value Added Tax

VAT is levied on both provision of goods and provision of services.The main VAT rate is 20%. The tax for tourist services is redused to a 9% rate. In addition to these tax rates there are reduced rates for some supplies, exempt supplies, supplies subject to a zero-rate tax as well as transaction relations which fall out of the VAT scope.

Social Insurance in Bulgaria

The insurance contribution burden falls both on the employer and the employee. The social insurance contribution has the following applicable rates:

The minimum insurance amount for 2015 is 420 lv.
The maximum insurance amount for 2015 is 2,600 lv.