The tax regime in Bulgaria can be divided into two main categories: direct taxes (corporate income tax, personal income tax, withholding taxes) and indirect taxes (value added tax and special taxes).
Corporate income tax
According to the Corporate Income Tax Act (CITA) all legal entities and unincorporated associations which trade commercially in the country are taxed with income tax in the amount of 10%. For the purposes of this law, unincorporated associations are equal to legal entities. Daytime legal entities are taxed on all their profits and income regardless of where they are realized. Foreign legal entities are taxed with income tax only on their business in Bulgaria.
Tax on personal income
Subject to taxation under the Law on Personal Income Tax - domestic and foreign. The Act regulates taxation on the income of individuals including from activity as a sole proprietor. Domestic persons are persons, regardless of their nationality, who have a permanent address in Bulgaria or persons who stay in Bulgaria for more than 183 days per year. Resident individuals are taxed on income from sources in Bulgaria and outside the country. Foreign individuals are taxed only on income from sources in Bulgaria. Income from dividends and distributed profits - domestic and foreign, are also taxed according to the law. From 1/1/2008 the income of individuals is taxed with a flat tax from 10%.
Taxes withheld at source
Tax withheld at source according to the Law on Income Tax of Legal Persons is withheld and paid only when the person receiving the income is a legal person - domestic or foreign. The income of a natural person is taxed according to the Law on Income Tax of Natural Persons. Dividends and distributed profits (personalised) from domestic legal entities for the benefit of domestic legal entities are taxed with withholding tax:
1. Foreign legal entities with the exception of cases when dividends are paid by a foreign legal entity through part of the business activity in the country
2. Domestic legal persons who are not traders, including municipalities. This tax is final and is taxed by domestic legal entities distributing dividends and distributed profits. The tax rate is 5%.
Value added tax
The Value Added Tax Act has been in force since 1/1/2007, the date of Bulgaria's accession to the European Union. The tax rate is 20%, except for goods and services which are mentioned in the law as taxable at a rate of zero.
Registration under VAT
Registration under the VAT Act is mandatory and optional. Compulsory registration - any person who is subject to taxation with a taxable turnover of BGN 50,000 or more for a period not longer than the 12 months preceding the current month is obliged - within a period of 14 days from the end of the tax period in which he or she acquired such turnover - to apply for registration at the relevant regional office of the National Revenue Agency. Regardless of the taxable turnover, registration is mandatory for any person residing in another EU Member State, who does not reside in the country and performs the supply of taxable goods imported into Bulgaria for or against his/her account and the recipient of which is not a person subject to VAT. Voluntary registration - any taxable person regardless of the size of the taxable turnover may register under the VAT Act voluntarily.
Excise duty (excise)
The specific tax is an indirect tax charged on the following goods:
- Alcohol, including wine and beer
- Tobacco
- Energy products and electricity
- Cars
- Coffee and coffee extracts
Avoiding double taxation
Bulgaria has signed double tax treaties with 53 countries.
English 
Greek 
Bulgarian