Taxes in Bulgaria

Corporate tax

Corporate tax10%

VAT

General VAT rate20%
Reduced VAT for hotel9%

Employment taxes

Social costs (employer’s part) salary up to 2600 BGN/month*17,94%
Social costs (employer’s part) salary over 2600 BGN/month0%
Social costs (employee’s part) salary up to 2600 BGN/month13,34%
Social costs (employee’s part) salary over 2600 BGN/month0%
Personal income tax (withhold by employer)10%

Personal income tax and social costs is applied for employees in the Bulgarian company. Social costs has a maximum level at gross salary of 2600 BGN/month.  On the part of the gross salary that exceeds 2600 BGN/month no social costs are paid. Social costs is also reduced with 2,38% / 2,2% for employees born before 1960.
*) 2600 BGN is approx 1300 EUR

No benefit tax on company cars

Dividends tax

Dividends tax (individuals)5%
Dividends tax (company from other EU country)0%

Dividend taxes are paid by the company owners, to whom the didivends are distributed.