Brief overview of Taxation in Bulgaria

Brief overview of Taxation in Bulgaria

•  Corporate Income Tax Rate – 10%.

•  Capital Gains Tax Rate – 10%

•  Capital gains derived from sale of shares through the Bulgarian Stock market or a regulated market in an EU/EEA member state – 0%

•  Tax on Dividends – 5%

•  Dividends paid to legal entities which are tax residents in an EU/EEA member state – 0%

•  Interest and Royalties – 10%

•  VAT – 20% * Refund period is 2 months under certain conditions. If your annual company turnover is less than EUR 25,000 VAT registration in Bulgaria is not mandatory

•  Personal Income Tax – 10%

•  Mandatory Social Security
  Employer: – 17.4%
  Employee: – 12.9%

•  Maximum monthly taxable base – BGN 2,600 (approx. EUR 1,350)