Taxes in Bulgaria for foreigners (2026), in plain language
In short: 10% flat income tax; employees pay 13.78% contributions, so take-home pay is about 78% of gross. Corporate tax 10%, dividends 5%. You usually become tax resident after more than 183 days in 12 months. Annual return by 30 April.
Salary
Employee contributions 13.78%, employer about 18.9–19.6% on top, maximum insurable income €2,300 a month from 1 August 2026, then 10% tax on gross minus contributions. Example: €1,500 gross → about €1,164 net.
Freelancers
Self-insured persons pay 27.8% (31.3% with optional sickness cover) on declared income between €620.20 and €2,300 a month; liberal professions get a 25% statutory expense deduction.
Companies and VAT
10% corporate tax, 5% dividend tax; VAT (20%) registration is mandatory above €51,130 turnover a year. See own company.
Property
Rental income: 10% after a 10% standard deduction for residents. Annual property tax 0.01–0.45% of tax value plus waste fee, 5% discount if paid by 30 April. Transfer tax 0.1–3% — see buying property.
FAQ
What is the income tax rate in Bulgaria?
A flat 10%; corporate tax is also 10% and dividends 5%.
How much is deducted from salary in Bulgaria?
13.78% employee contributions plus 10% tax on the remainder — about 78% of gross is paid out.
📚 Sources: 4
For information only; not legal advice.
