← Guides / Bulgaria / Investment Income

Bulgaria Investment Income Guide 2026

Bulgaria offers favourable tax treatment on investment income: dividends are taxed at 5% (0% for EU companies), interest at 10% (0% for EU residents), and capital gains at 10% (0% for BSE shares held >1 year).

Dividend Tax — 5%

Dividends paid by Bulgarian companies to individuals are subject to a final 5% withholding tax. For EU companies holding at least 10% of shares (or 15% under the parent-subsidiary directive), the WHT rate is 0%. Dividends from EU/EEA subsidiaries are 95% exempt from CIT.

Interest Tax — 10%

Interest income earned by Bulgarian residents is taxed at 10% as part of the flat IIT. For non-residents, a final 10% withholding tax applies, reduced to 0% for EU residents under the Interest and Royalties Directive. Interest on government bonds and bank deposits is subject to the same 10% rate.

Capital Gains Tax — 10%

Capital gains on the sale of shares, bonds, and real estate (non-business) are taxed at 10%. Gains on BSE-listed shares held for more than one year are exempt.

Tax-Free Investment Income

Key Facts