How corporate tax works in Bulgaria
Bulgaria corporate income tax is flat at 10% for ordinary resident companies. Resident legal persons are taxed on worldwide income, while non-residents are generally taxed only on Bulgarian-source income through a permanent establishment or withholding tax.
Most ordinary trading, services, holding and investment companies are in the standard 10% CIT regime. Special regimes exist for some gambling income and for commercial maritime vessels under the tonnage-tax rules.
Bulgaria also taxes dividends, interest, royalties and some other outbound payments, and 2026 is a transition year for euro-denominated reporting and phased SAF-T implementation. A new enhanced R&D deduction was enacted retroactively from 1 January 2026.
Tax rates at a glance
- Standard CIT
- 10%Flat
- Dividend WHT
- 5%
- Interest / royalties WHT
- 10%
- Gambling tax
- 25%
- Tonnage tax
- 10%
- VAT
- 20%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FoundersHolding companiesSaaS businessesRegional operatorsSMEs
Watch out for
- There are no local or provincial corporate income taxes, but payroll, VAT and municipal costs can still be significant.
- Large companies need to watch transfer pricing, SAF-T rollout and the 2026 euro transition closely.
- Dividend planning matters because the standard distribution layer adds 5% withholding tax unless an exemption applies.
Frequently asked questions
Does Bulgaria have corporate tax?
Yes. The standard corporate income tax rate is 10%.
Are dividends taxed at the company level in Bulgaria?
Yes, Bulgaria generally levies 5% withholding tax on dividends, subject to statutory exemptions for some EU or EEA recipients.
Are there special corporate tax regimes in Bulgaria?
Yes. Gambling and tonnage-tax rules are separate from the standard 10% corporate income tax regime; the 2026 variable gambling levy is 25%.