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Taxation in Bulgaria information


Taxes in Bulgaria are collected on both state and local levels. The most important taxes are collected on state level, these taxes include income tax, social security, corporate taxes and value added tax. On the local level, property taxes as well as various fees are collected. All income earned in Bulgaria is taxed on a flat rate of 10%.[1] Employment income earned in Bulgaria is also subject to various social security insurance contributions. In total the employee pays 12.9% and the employer contributes what corresponds to 17.9%.[2] Corporate income tax is also a flat 10%. Value-Added Tax applies at a flat rate of 20% on virtually all goods and services. A lower rate of 9% applies on only hotel services.[3]

Bulgarian state taxes are administered by the National Revenue Agency (NRA). The National Assembly has the power to lay and collect Taxes, Duties, Imposts, and Excises. The municipal council shall determine the rate of local taxes.[4]

  1. ^ "Bulgaria income tax rules". Your Europe.
  2. ^ "Social security contributions rate bulgaria". KPMG. 27 June 2022.
  3. ^ "VAT rate in Bulgaria". Germania.
  4. ^ CONSTITUTION OF THE REPUBLIC OF BULGARIA. Art. 141. (3) The municipal council shall determine the size of local taxes under conditions, by a procedure and within the frames, established by law. (4) The municipal council determines the rate of local charges by a procedure, established by law.

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