'%3e%3cpath%20fill='%23496e2d'%20d='m0%20166.9%20258-31.7%20254%2031.7v178l-251.4%2041.3L0%20344.9z'/%3e%3cpath%20fill='%23eee'%20d='M0%200h512v166.9H0z'/%3e%3cpath%20fill='%23d80027'%20d='M0%20344.9h512V512H0z'/%3e%3c/g%3e%3c/svg%3e)
Bulgaria tax guide 2026
Bulgaria enters the euro era with the European Union's simplest tax deal intact: a flat 10% on income, 5% on dividends, 0% on European-exchange share gains and bank interest, and no tax at all on what spouses and children inherit. Social charges are light too — 13.78% for employees, capped at just over EUR 2,100 of monthly pay.
- Rate range
- Flat 10%; sole traders 15%; dividends 5%
- Key allowance
- No general allowance — the flat rate starts at the first euro; child credits instead
- Tax year
- Calendar year
- Filing deadline
- 30 April (from 10 January); 5% credit for e-filing by 31 March
Taxes covered
- Income tax10%
A true flat tax — 10% on salaries, freelance income and rents, with fixed cost deductions instead of allowances; sole traders pay 15%.
- Dividend tax5%
A flat, final 5% withholding on dividends — the 2026 budget's proposed doubling was dropped — and stock dividends are not taxed at all.
- Capital gains tax0% / 10%
Listed-share gains on European exchanges are exempt; other gains join the 10% flat tax with fixed deductions and generous property exemptions.
- Crypto tax10%
Crypto gains are netted annually, reduced by a 10% fixed deduction and taxed at the flat 10% — an effective 9% on net profits.
- Social security13.78%
Employees pay 13.78% on gross pay capped at EUR 2,111.64 a month — a maximum of about EUR 291 monthly.
- Inheritance tax0% – 6.6%
Spouses and direct-line relatives pay nothing; siblings and their children 0.4–0.8%, others 3.3–6.6% — each above a EUR 127,823 per-heir exemption.
- Withholding tax5% / 10%
Non-residents: 5% on dividends and 10% on interest, royalties, rents, fees and gains — with EEA residents able to refile on a net basis.
Special regimes
- 10% flat tax
One rate on salaries, freelance income, rents and gains — the lowest general rate in the European Union.
- Listed-share exemption
Gains on shares traded on Bulgarian and other European Economic Area exchanges and growth markets are tax-free.
- Tax-free bank interest
Interest on deposits with banks in the European Economic Area is exempt, as is government and corporate bond interest.
- Family inheritance exemption
Spouses and direct-line relatives inherit and receive gifts with no tax; others get a EUR 127,823 per-heir exemption.
Recent changes
- 2026-01The euro replaces the lev at BGN 1.95583; tax payments switch to euro, with January 2026 as the dual-circulation month.
- 2026-01The lump-sum (patent) tax turnover ceiling is set at EUR 51,129; contribution ceilings carry over at EUR 2,111.64 a month pending the 2026 budget.
- 2025-12The coalition dropped the proposed dividend-tax doubling and contribution hikes from the 2026 budget — 5% dividends and current rates stand.