Bulgaria Crypto Tax Guide 2026
Cryptocurrency gains in Bulgaria are taxed as capital gains at 10% (or as business income at 10% for frequent traders). Mining income is treated as self-employment income subject to 10% IIT and social contributions.
Tax Treatment of Cryptocurrencies
The Bulgarian NRA has issued guidance confirming that cryptocurrencies are treated as financial assets for tax purposes. Gains from the sale or exchange of crypto are subject to 10% capital gains tax (included in the flat IIT). For individuals trading crypto as a business activity, the gains are treated as self-employment income at 10%.
Crypto Mining
Crypto mining income is treated as self-employment income, subject to:
- 10% IIT on net profit (revenue minus electricity, hardware, and operating costs)
- Social contributions (self-employed rate ~25.5%) on insurable income
- VAT registration may be required if mining constitutes an economic activity (subject to thresholds)
Staking and DeFi
Income from staking, lending, and DeFi protocols is taxable as investment income at the flat 10% rate. The NRA has not issued specific guidance on DeFi, but general principles apply: income is taxable when received, measured at fair market value in BGN.
Crypto-to-Crypto Trades
Exchanging one cryptocurrency for another is a taxable event. The gain is calculated as the difference between the fair market value of the crypto received (in BGN) and the cost basis of the crypto given up. Each trade must be tracked and reported.
VAT on Crypto
In line with the CJEU Hedqvist ruling, the exchange of fiat currency for cryptocurrency, and vice versa, is exempt from VAT. Mining is also generally outside the scope of VAT.
Reporting Requirements
Crypto gains must be declared on the annual personal tax return by April 30. Detailed records of all transactions, including dates, amounts, counterparties, and BGN values, must be maintained. Bulgaria does not have a specific crypto reporting framework (like CARF or DAC8 implementation pending).