Taxes on income and profit
| Tax | Rate | Base / details | Source |
|---|---|---|---|
| Corporate income tax | 10% | taxable profit; advance instalments required above €153,388 in revenue | Corporate Income Tax Act (CITA) Art. 20, Art. 83 |
| Dividend tax | 5% | on distributions to individuals and foreign persons; 0% to EU companies | CITA Art. 194; Personal Income Tax Act (PITA) Art. 38 |
| Personal income tax | 10% | flat rate; sole traders (ET) — 15%; freelance professions — after a 25% standard deduction | PITA Art. 48, Art. 29 |
| Tax on expenses | 10% | representation and welfare expenses, benefits in kind (company car) | CITA Art. 204 |
| Patent tax | set by municipality | crafts, small establishments with turnover up to €25,565 | Local Taxes and Fees Act |
VAT
| Element | 2026 | Note |
|---|---|---|
| Standard rate | 20% | |
| Reduced rate | 9% | hotel accommodation and others under Art. 66a |
| Mandatory registration threshold | €51,130 | taxable turnover for the calendar year; 7-day deadline |
| Threshold for EU distance sales (OSS) | €10,000 | combined across all member states |
| Filing deadline | the 14th | for the preceding month; VIES for EU supplies |
Social security 2026
| Parameter | 01.01–31.07.2026 | from 01.08.2026 |
|---|---|---|
| Minimum wage | €620.20 | €620.20 |
| Minimum insurable income for self-employed (SOL) | €550.66 | €620.20 |
| Maximum insurable income | €2,111,64 | €2,300,00 |
| Contributions for self-employed (excl. voluntary unemployment insurance) | 27.8% | 27.8% |
| Contributions for self-employed (incl. voluntary unemployment insurance) | 31.3% | 31.3% |
| Health insurance contribution for unemployed persons | 8% on €275.33 | 8% on €310.10 |
Breakdown for people born after 1959: "Pensions" fund 14.8%, supplementary mandatory pension insurance (UPF) 5%, health insurance 8%, voluntary unemployment insurance (OZM) 3.5% (optional). The figures follow the State Social Security Budget Act for 2026, adopted in July 2026.
Key deadlines throughout the year
Add the 5 key deadlines to your calendar (.ics) →
| Deadline | Obligation |
|---|---|
| 14th of each month | VAT return and VIES declaration |
| 25th of each month | social security contributions and payroll tax; Declarations 1 and 6; advance instalments for self-employed persons |
| 30 April | Annual tax return under Art. 50 PITA for individuals and self-employed persons (5% discount if filed by 31 March) |
| 30 June | Annual tax return under Art. 92 CITA and annual activity report (NSI); declaration of inactivity in the Trade Register |
| 30 September | publication of annual financial statements in the Trade Register |
| 1 December | final advance instalment for corporate tax |
Frequently asked questions
When does a company owe advance instalments for corporate tax?
+−
When net sales revenue for the preceding year exceeds €153,388 (BGN 300 000). Below that amount, no instalments are due.
What is the tax on withdrawing a dividend from an EOOD?
+−
5% on the gross amount, withheld by the company and remitted by the end of the month following the quarter in which the decision was made.
Did anything change with the introduction of the euro?
+−
The rates did not. Thresholds were converted at the fixed exchange rate of 1,95583; the VAT number remains BG + UIC.
Change history for this page
- Minimum insurable income for self-employed persons €620.20; maximum €2,300 (State Social Security Budget Act 2026).
- VAT registration threshold €51,130 for the calendar year; 7-day deadline; small business scheme (State Gazette No. 115/30.12.2025).
- Introduction of the euro; all thresholds converted at the fixed rate of 1,95583.
Sources
Corporate Income Tax Act; Personal Income Tax Act; VAT Act (State Gazette No. 115/30.12.2025); State Social Security Budget Act 2026; National Health Insurance Fund Budget Act 2026; nra.bg; noi.bg. Verified on 3 September 2026.
Important
Bulsmetka is a private accounting firm, not a government authority. The information is general in nature and does not replace individual advice. State fees are invoiced at cost.