How income tax works in Bulgaria
Bulgaria income tax is straightforward for most individuals because the standard personal income tax rate is a flat 10%. Bulgarian residents are taxed on worldwide income, while non-residents are generally taxed only on Bulgarian-source income.
{ "Employment income is withheld monthly by the employer": { " Rent is usually taxed with quarterly advance tax and a 10% statutory expense deduction": { " Sole traders are a separate case": "they file an annual return and pay a 15% annual tax under the NRA rules." } } }
The income tax rate is only part of the bill. Employees and self-employed people also face mandatory social security and health contributions, and most individuals still need to watch VAT, residency status and the annual filing deadline of 30 April. An e-filing discount of 5% can apply if the return is filed and paid by 31 March.
Income tax brackets in Bulgaria
| Bracket | Rate | Notes |
|---|---|---|
| All ordinary personal income | 10% | Bulgaria does not use progressive income tax brackets for normal PIT. |
| Salary and wages | 10% | Employers withhold monthly through payroll. |
| Rent and many investment-type receipts | 10% | Quarterly advance tax may apply. |
Tax rates at a glance
- Personal income tax
- 10%Flat
- Employment income
- 10%
- Rental income
- 10%
- Sole trader tax
- 15%
- Foreign income
- 10%
- Payroll social security
- 32.7% - 33.4%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesFreelancersExpatsContractorsRemote workers
Watch out for
- Tax residence matters. Bulgaria generally taxes residents on worldwide income and non-residents on Bulgarian-source income only.
- Mandatory social security and health contributions are often the real cost driver, not the 10% PIT headline rate.
- Bulgaria is already in the euro, and 2026 filings are being handled in EUR. Larger businesses also need to track SAF-T rollout.
Frequently asked questions
Do expats pay income tax in Bulgaria?
If they are Bulgarian tax residents, yes, on worldwide income. Non-residents are generally taxed only on Bulgarian-source income.
Is salary taxed at a flat rate in Bulgaria?
Yes. Employment income is generally taxed at 10%, with the employer withholding the tax through payroll.
When is the Bulgarian income tax return due?
The usual deadline is 30 April of the following year. A 5% filing discount can apply if you file and pay electronically by 31 March.