Bulgaria's tax system: flat rates and who collects

Companies and taxes · Last reviewed: 2026-10-10

The headline rates, and why there are so few numbers

The simplicity of the system ends at the rates. How the taxable base is formed, which expenses are recognised and which income is exempt are governed by detailed rules. That is why the sentence «I will pay 10%» is misleading on its own: what matters is what those 10% are charged on.

The two layers between profit and dividend

A company's profit is first subject to corporate income tax. When the remainder is distributed to an owner as a dividend, withholding tax arises on top. Leaving money in the company and paying it out to yourself therefore have different tax consequences. Paying yourself a manager's remuneration is a third route, where social security contributions join the income tax.

Who counts as a Bulgarian taxpayer

Tax residence is determined not by citizenship but by statutory criteria: where the permanent address is, how long the person stays in the country during the year, and where the centre of vital interests lies. A resident is answerable in Bulgaria for worldwide income; a non-resident only for Bulgarian-source income. For someone living between two countries, this is the first question that decides which state the tax belongs to.

Double taxation treaties

• •Bulgaria has concluded treaties with a large number of countries, Türkiye among them; a treaty takes precedence over domestic law.
• •Treaty relief is not applied automatically — a separate procedure runs before the NRA, usually requiring a residence certificate issued by the other state.
• •Information exchange mechanisms also operate within the EU, so income undeclared in one country does not stay invisible in the other.
• •Which state may tax depends on the type of income: salary, dividends, rent and professional income are governed by separate articles.

Working with the NRA in practice

The NRA is the centre of filing and collection: the annual return, VAT returns and contribution declarations all go there. Electronic services are accessed with a qualified electronic signature or with a personal identification code issued by the agency. For companies, keeping the filing calendar is usually the contracted accountant's job, but legal responsibility stays with the taxpayer.

The annual calendar: which return, when

Knowing the rates is not enough; you also need the calendar. According to the NRA's pages, the annual corporate tax return is filed with an electronic signature between 1 March and 30 June of the following year, and the tax is due by 30 June at the latest; the annual activity report goes in with the return. A sole trader (ET) works to the same window and the same payment date. The annual return of individuals who are not traders falls between 10 January and 30 April.

Advance payments of corporate tax

The corporate tax rate is 10% under Article 20 of the Corporate Income Tax Act. According to the NRA, a company whose net sales revenue for the year before the previous one exceeds 153,387.56 euro must make advance payments; none are due where that figure is not exceeded, nor in the year of incorporation and the year after, except for companies newly formed through a conversion under the Commerce Act. Monthly advances apply once revenue exceeds 1,533,875.64 euro, and quarterly advances apply between the two thresholds. The amounts are set from the expected tax profit of the current year.

Withholding tax: 5% and 10%

The NRA's withholding tax page gives 5% for dividends and liquidation shares paid by local companies to foreign legal entities and to local legal entities that are not traders (Art. 194 of the same act), and 10% for other income (Art. 195). The payer withholds the tax and files and pays it by the end of the month after the quarter. The page does not cover dividends paid to individual partners; ask your accountant about that case.

Frequently asked questions

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