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Withholding tax in Bulgaria 2026
Bulgaria withholds 5% on dividends and a flat 10% on almost everything else paid to non-residents — interest, royalties, rents, technical and management fees, performers' income.
European Economic Area (EEA) residents get two outs: exemptions that mirror residents' (listed shares, EEA bank interest), and the option to reassess withheld income on a net basis.
At a glance
- top rate
- 10%
- entry band
- 5% on dividends; 0% on exempt categories
- tax year basis
- Withheld when paid or accrued
- filing deadline
- Final for withheld income; self-filed otherwise
- residency basis
- Bulgarian-source payments to non-residents
- regime flag
- EEA net-basis reassessment option
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 5% | Gross | Dividends and liquidation proceeds |
| 10% | Gross | Interest, royalties, rents, franchising and factoring, technical and management fees, performers and scientists |
| 10% | Gain (10% deduction for property) | Capital gains on Bulgarian real estate and unlisted securities — by assessment |
| 0% | — | EEA residents' gains on exchange-listed and growth-market instruments; state and municipal securities on growth markets |
| 10% | Gross | Contractual penalties and indemnities paid to low-tax jurisdictions |
Thresholds & allowances
- Non-discrimination ruleEEA exemption parity
Income exempt for Bulgarian residents is exempt from withholding for European Economic Area residents too
Residency
Residency trigger
Payers withhold at source; where the payer isn't an enterprise, the non-resident files and pays directly.
Non-resident treatment
Treaty rates prevail; EEA residents can elect net-basis taxation for the whole year's Bulgarian income and reclaim excess withholding not creditable at home.
Notes
- Employment income of non-residents is taxed at the same flat 10% as residents' — there is no special expatriate scale.
- Certificates of income received and tax paid are available for home-country credit claims.
- European Union rules for faster withholding-tax refunds — Faster and Safer Relief of Excess Withholding Taxes (FASTER) — apply from 2030; Bulgaria has not yet transposed them.
FAQ
What does Bulgaria withhold on payments abroad?
5% on dividends and 10% on interest, royalties, rents and service fees — with treaty reductions and full exemptions for income that residents receive tax-free.
Can EEA residents recover Bulgarian withholding?
Yes — they may opt to be reassessed on the net income for all their Bulgarian-source income of the year, replacing the 10% gross withholding, with excess tax refunded to the extent it can't be credited at home.
Figures: tax year 2026, compiled from public sources. Not tax advice.