🧾 What tax do I pay on my income?

Yes

Quick answer

10% — a flat tax, whatever you earn. Bulgaria has one of the simplest tax regimes in the EU: personal income tax is 10% and it is flat — there are no progressive bands and no higher rate for high earners. Corporate tax is also 10%, and dividends are taxed at 5%. On an employment contract your employer withholds the tax monthly and you usually have nothing to do. An annual tax return is due by 30 April of the following year — and it is mandatory if you have income outside employment: civil contracts, rent, freelance work, the sale of property, foreign income, dividends or securities trades. The return is filed online with the National Revenue Agency. Following euro adoption, amounts are declared in euro.

📋 The rules

Personal income tax: 10%, flat — no progression
Corporate tax also 10%; dividends 5%
On employment, tax is withheld monthly by the employer
Annual return by 30 April if you have income outside employment
Filed online with the Revenue Agency; amounts now in euro

🔓 Exceptions

With employment income only, you usually owe no annual return
Tax reliefs exist — for children, donations, and young families with a mortgage
Rental and freelance income benefit from statutory deductible expenses

⚠️ Penalties & fines

Failing to file the annual return on time brings a fine, and unpaid tax accrues interest for every day of delay. Where income is concealed — undeclared rent, or foreign income — the Revenue Agency can assess the tax retrospectively with interest, and for larger sums criminal liability for a tax offence can follow. Be especially careful with foreign income and platform earnings: exchange of data between countries is now automatic, and "nobody will find out" does not hold. File even when the tax due is zero — the obligation is to file, not merely to pay.

📎 Official sources

Last verified: 2026-07-12

❓ Frequently asked

How much is income tax?

10%, flat — the same rate whatever the size of your income. There are no progressive bands, which makes Bulgaria one of the simplest tax systems in the European Union.

Do I have to file a return if I am employed?

Usually not. Your employer withholds the tax monthly and settles it annually. A return is due if you have other income too — a civil contract, rent, freelance work, a property sale or foreign income.

When is the return due?

By 30 April of the year following the year the income was received. It is filed online with the Revenue Agency, and since euro adoption the amounts are declared in euro.

What is the tax on dividends?

5%, usually withheld at source by the company distributing them. Corporate tax is 10%, the same as personal income tax.

What if I do not declare foreign income?

The Revenue Agency can assess the tax retrospectively with interest, and for larger sums criminal liability can follow. Exchange of tax information between countries is now automatic, so the income is visible.

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