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

Personal income tax rate: A flat rate of 10% on the taxable income.

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.