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Bulgaria Personal Tax Guide 2026

Bulgaria applies a flat 10% personal income tax (IIT) — one of the lowest in Europe. There is no tax-free personal allowance. Employment income, self-employment income, and most other earnings are taxed at this single flat rate.

Individual Income Tax Rate

10% flat — All taxable income (employment, self-employment, business, rental, investment) is subject to a flat 10% rate. Unlike most EU countries, Bulgaria does not have progressive brackets. There is no personal allowance; tax is due on the first lev of income.

Social Security Contributions

Employees pay 12.75% of gross salary (pension 7.45%, health 3.2%, unemployment 0.4%, additional pension 1.7%). The social security contribution base is capped at BGN 3,750/month. Income above this cap is not subject to social contributions but is still subject to the 10% IIT.

Tax Residency

You are a Bulgarian tax resident if you spend 183 days or more in Bulgaria in a calendar year. Residents are taxed on worldwide income. Non-residents are taxed only on Bulgaria-source income. Bulgaria has over 70 double tax treaties to prevent dual taxation.

Filing Requirements

Individuals must file an annual tax return with the National Revenue Agency (NRA) by April 30 of the following year. Employers withhold IIT at source via payroll. Self-employed individuals must make quarterly advance payments.

Tax Treatment of Specific Income Types

Key Facts

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