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Bulgaria Corporate Tax Guide 2026

Bulgaria offers the lowest corporate income tax rate in the European Union at a flat 10%. Micro-enterprises with turnover below BGN 50,000 may qualify for a reduced 5% rate. Combined with EU market access, this makes Bulgaria a highly competitive jurisdiction.

Standard Corporate Tax Rate

10% flat on accounting profit adjusted for tax purposes. This applies to all resident companies and Bulgarian permanent establishments of foreign entities. Bulgaria's 10% CIT is the lowest statutory rate in the EU.

Micro-Enterprise Rate — 5%

Companies with annual turnover below BGN 50,000 may qualify for a reduced 5% CIT rate, provided they meet the definition of a micro-enterprise under the Small and Medium Enterprises Act. This rate applies to the first BGN 50,000 of profit.

Holding Company Regime

Bulgaria offers a participation exemption: dividends received from EU/EEA subsidiaries are 95% exempt from CIT (effectively 0.5% effective rate). Capital gains on the disposal of shares in EU/EEA companies are also exempt.

R&D Super-Deduction

Companies can deduct 150% of qualifying research and development expenses for CIT purposes. This provides an effective tax saving of 15% on every BGN 100 spent on eligible R&D activities.

High-Value Employment Deduction

Employers may claim a 50% deduction on gross salaries paid to employees in high-value-added roles (e.g., IT, engineering, scientific research) under certain conditions, reducing the effective CIT on related profits.

Tax Incentives Summary

• Standard CIT: 10% (lowest in EU)
• Micro-enterprise CIT: 5% (turnover < BGN 50K)
• R&D deduction: 150% super-deduction
• High-value employment: 50% salary deduction
• Dividend exemption: 95% participation exemption for EU/EEA subsidiaries
• Capital gains on shares: exempt for EU/EEA subsidiaries

Corporate Tax Filing

Corporate tax returns must be filed with the NRA by March 31 of the following year. Advance payments are due monthly or quarterly depending on prior-year tax liability. Losses may be carried forward 5 years.