Value Added Tax (VAT)

The amount of VAT in Bulgaria is 20% with some exceptions. Some deals are free of VAT /land purchase, shares purchases, etc /. Some are with VAT in smaller amount.

Taxation of Individuals

The taxation of the annual income of the individuals in Bulgaria is in accordance with the following progressive table: Annual Income Taxation: up to 2400 leva - Free of taxes from 2400 leva to 3000 leva - 20 % for the income over 2400 leva from 3000 leva to 7200 leva - 120 leva + 22 % for the income over 3000 leva over 7200 leva - 1044 leva + 24 % for the income over 7200 leva The dividends accounted from Bulgarian companies in benefit of the shareholders in the respective company will be taxed with “ final tax” which is always in the amount of 7% . This income, after the taxation with 7%, will not be included in the total income described in the table above.

Taxation of Companies

The companies pay “ corporative tax” in amount of 10% of the net income for the respective year /annual basis/.

Real Estate Taxation

The taxation of the real estate assets is 0.15% of the tax valuation per annum. The valuation is in accordance with addendum No 2 of the Law for the local taxes and fees. Also the owners of real estate properties have to pay fee for the treatment of the trash, which fee is different for the territory of every one municipality. The fee is defined every year by the municipality’ s council.

Property Purchase Taxes in Bulgaria

The taxation of the real estate assets is 0.15% of the tax valuation per annum. The valuation is in accordance with addendum No 2 of the Law for the local taxes and fees. Also the owners of real estate properties have to pay fee for the treatment of the trash, which fee is different for the territory of every one municipality. The fee is defined every year by the municipality’ s council.

Employer and Employee Contributions

Capital Gain Taxes in Bulgaria

Reporting Dates in Bulgaria

• The tax year in Bulgaria is the year ending on December 31.
•  A limited company files an annual report by March 31. An individual must file an annual report by April 15.

Companies that finished the previous year with a profit pay 12 monthly advance payments in the following year. New companies make 4 quarterly advance payments.