Income tax in Bulgaria 2026

Everything runs through one 10% rate — there are no brackets and no general personal allowance, just fixed cost deductions by income type (25% for freelancers, 40% for performers and lawyers, 10% for rents).

Registered sole traders sit apart at 15%, which roughly matches the combined company-plus-dividend burden.

At a glance

top rate: 10% flat (15% for sole traders)
entry band: 10% from the first euro
tax year basis: Calendar year, cash basis
filing deadline: 30 April (sole traders 30 June); e-filers by 31 March earn a 5% credit up to EUR 255.65
residency basis: Worldwide if present 183+ days, centred or permanently addressed in Bulgaria
regime flag: Municipal lump-sum (patent) tax for small trades under EUR 51,129 turnover

Rates

How income is taxed (2026)

Rate	Base	Applies to
10%	Gross pay less social contributions	Employment income — withheld monthly by the employer
10%	Income less 25% fixed costs	Freelancers and professionals
10%	Income less 40% fixed costs	Performers, craftsmen, lawyers and royalty earners
10%	Income less 60% / 40% fixed costs	Registered farmers — unprocessed / processed production
15%	Net profit (company rules)	Registered sole traders
Municipal lump sums	Activity-based	Patent-tax trades (small hotels, hairdressers, tailors) under EUR 51,129 turnover

Thresholds & allowances

Child creditsEUR 306.78 / 613.55 / 920.33
Annual tax savings for one, two, and three-plus minor children (allowances of EUR 3,068 / 6,136 / 9,203 off the base; 2025 levels); EUR 613.55 for a child with special health needs
Disability allowanceEUR 4,049.43 off the base
Worth about EUR 404.94 of tax a year (2025 level)
Young-family mortgage interestFirst EUR 51,129 of the loan
Interest deductible where a spouse was under 35 at signing and the home is the family's only dwelling
Home renovationEUR 1,022.58 of labour costs
Annual deduction worth about EUR 102 of tax, with documentation conditions
Voluntary insurance10% + 10% of the base
Separate 10% ceilings for voluntary pension/unemployment contributions and for health/life premiums
Seafarers90% deduction
Seamen are taxed on only 10% of employment income

Residency

Residency trigger

You are resident with 183+ days of presence in any 12 months, a Bulgarian centre of vital interests, or a permanent address (unless your life is clearly centred abroad); residents owe the flat tax on worldwide income.

Non-resident treatment

Non-residents pay the same 10% on Bulgarian-source income — employment included — and European Economic Area (EEA) residents may opt for net-basis reassessment of withheld income, with the same exemptions residents enjoy.

Notes

Filing runs 10 January to 30 April, with tax due in euro from 2026 even for lev-denominated 2025 liabilities.
Paying at least 5% of your shopping by card earns a small non-cash allowance (up to EUR 255.65 of tax back, conditions apply).
Sole traders' business losses carry forward 5 years.
Farmers can waive up to 60% of the tax on unprocessed production through 2029.
There is no special expat regime — the 10% flat rate is the regime.
All reliefs require a clean slate: enforceable public debts cancel your right to deductions and credits.

FAQ

What is Bulgaria's income tax rate?

A flat 10% on virtually all personal income — the lowest general rate in the European Union; registered sole traders pay 15% on business profits.

Are there any allowances?

No general allowance — instead fixed cost deductions (25% freelancers, 40% artists and lawyers) and credits for children worth EUR 306.78 to EUR 920.33 a year.

When do I file?

Between 10 January and 30 April; filing electronically by 31 March with timely payment earns a 5% discount on the balance, capped at EUR 255.65.

Figures: tax year 2026, compiled from public sources. Not tax advice.

See income tax in other countries

Full ranking →