Bulgaria's corporate tax rate: a flat 10%
Company profit in Bulgaria is taxed at 10%, and the rate does not rise as profit rises — there are no brackets and no progression (Ministry of Economy, Investments and Industry and the National Revenue Agency, checked 23 August 2026). What actually decides your tax bill is not the rate but the figure it multiplies and the calendar on which it falls due.
Companies and taxes · Last reviewed: 2026-08-23
One rate, 10%
The Corporate Income Tax Act (ЗКПО) applies a 10% rate to annual taxable profit. The rate has stood unchanged since 2007 and does not vary with company size, shareholder nationality or sector. Every company incorporated in Bulgaria — ЕООД, ООД, АД — is taxed at it, and a foreign company is taxed at the same rate on the profit attributable to its permanent establishment in the country.
A flat rate changes the character of tax planning. Nobody in Bulgaria asks which bracket they fall into; the question is what the base looks like. Which costs are deductible, which provisions are disallowed, how fast tax depreciation runs — those are the decisions that move the number.
The base is taxable profit, not accounting profit
The 10% is not applied to the bottom line of the income statement. The accounting result is converted under statutory rules: disallowed expenses are added back, amounts already taxed are deducted, depreciation is recomputed on the tax depreciation schedule. The result is the annual taxable profit. A loss-making company owes no corporate tax and, within the limits the Act sets, may carry the loss forward against future profits.
Profit is taxed in two layers
Filing and payment
Companies report their tax result to the NRA in an annual tax return. The Ministry's page states that corporate tax due is paid, after deducting the advance instalments made during the year, by 30 June of the year following the year the return covers. The source gives two different formulations for the day filing opens, so this article does not state an opening date — check the NRA tax calendar each year.
Advance instalments and their thresholds
The type and amount of advance instalments are set by the taxpayer itself in a declaration filed between 1 March and 15 April of the current year. The test is net sales revenue for the year before the previous one.
| Net sales revenue (year before the previous one) | Advance instalments | Due |
|---|---|---|
| below roughly €153,400 | none | — |
| above roughly €153,400 | quarterly | no quarterly advance instalment for the fourth quarter |
| above roughly €1,533,900 | monthly, on forecast profit | January–March by 15 April; April–December by the 15th of the current month |
The design is straightforward: the budget collects through the year and the company avoids one large payment at the end. At year end the instalments already paid are set off; any shortfall is settled by 30 June and any excess is refunded or offset. A forecast that departs sharply from the actual result can attract an additional charge, so the advance declaration deserves a real budget behind it.
What this means for a foreign owner
- The rate is blind to nationality — a company owned from Istanbul, Kyiv or Sofia pays the same 10%.
- Tax arises when profit arises, not when it is taken out; retained profit is taxed too.
- Taking the profit abroad engages the second layer and any applicable double taxation treaty.
- A foreign company with no permanent establishment in Bulgaria is outside this tax — but the definition of permanent establishment is broader than most expect.
- Having no tax arrears is the precondition for the clearance certificate demanded in tenders, permits and many other procedures.
Confirm the figures at the official source
This is not legal or financial advice
Frequently asked questions
What is the corporate tax rate in Bulgaria?
A flat 10% on annual taxable profit, with no brackets and no progression (Ministry of Economy and NRA, checked 23 August 2026).
When is corporate tax paid?
By 30 June of the year following the tax year, after deducting the advance instalments paid during that year.
Do small companies pay advance instalments?
No. The obligation arises only when net sales revenue for the year before the previous one exceeds the threshold.
Sources
The information on this page is based on the official sources listed below. Legislation changes — open the links and verify the current position.
- Министерство на икономиката и индустрията — Деклариране и изплащане на корпоративен данък. Годишна данъчна декларация — https://www.mi.government.bg/en/general/deklarirane-i-izplashtane-na-korporativen-danak-godishna-dan/ · 2026-08-23
- Национална агенция за приходите — Корпоративен данък върху годишната данъчна печалба — https://www.nap.bg/en/page?id=518 · 2026-08-23
- Your Europe (Европейска комисия) — Корпоративни данъци в ЕС: България — https://europa.eu/youreurope/business/taxation/business-tax/company-tax-eu/bulgaria/index_en.htm · 2026-08-23
- Lex.bg — Закон за корпоративното подоходно облагане (ЗКПО) — https://lex.bg/laws/ldoc/2135540562 · 2026-08-23
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