Taxes in Bulgaria

Income tax in Bulgaria is progressive and will be anywhere between 15% - 29%. There are some exemptions that apply to individual circumstances.

Income tax…

If you work in Bulgaria then you will have to pay income tax on any monies that you earn. In the case of an individual who is a resident of Bulgaria income will be calculated on any income he/she earns in Bulgaria and any income he/she has from overseas. A foreign resident will only pay tax on his/her earning whilst in Bulgaria.

The employer has to deduct the income tax and national insurance (as in the UK) before the earnings are paid to the individual

Capital gains tax…

Capital gains tax is paid by the individual on sale of real estate or work vehicles. If an individual sells a moveable asset, they pay tax on the difference between the sale price and the cost of the asset sold. The tax year in Bulgaria runs to December 31st.

Even though Bulgaria entered the EU in 2007, it will take some time for changes to happen in this area. As it does this information will be updated accordingly