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What are the corporate taxes in Bulgaria?
Companies in Bulgaria benefit from the lowest corporate tax rate of 10% (flat), a general income tax of 10% (flat), a dividend tax of 5% (flat), 0% VAT for services in EU, 9% to 20% VAT for domestic services, the lowest social contributions in the EU, and a recognised VAT regime across the EU. Corporate income tax is due to 1 March through 30 June of the following year.
Are there any mandatory social contributions?
Mandatory social insurance contributions include social security and health insurance contributions.
The total social security contribution is 32.7%–33.4% (split between employer and employee in the following ratio: employer 18.92%– 19.62% and employee at 13.78%). The aggregate rate of social security contributions is 24.7%–25.4% (split between employer and employee in the following ratio: employer 14.12%–14.82% and employee at 10.58%). The aggregate rate of health insurance contributions is 8%, of which 4.8% is payable by the employer and 3.2% is payable by the employee. The social security contribution base is the total income, capped at BGN 3 400 (approx. EUR 1 738.39) per month (for the year 2023); however, minimum thresholds per position and industry sector also apply.
What is the fiscal year?
The fiscal year coincides with the calendar year. The annual corporate income tax return has to be filed and the annual corporate income tax liability has to be paid by March 31 of the following year. As of January 1, 2018, only electronic filings are allowed.
What is the official language?
The official language is Bulgarian. Foreign documents should be translated (and legalized when required) in Bulgarian when provided to the Bulgarian National Revenue Agency.
What is the official Bulgarian currency?
Bulgaria introduced the Euro as an official currency from 2026 and has officially joined the Eurozone.
Is Bulgaria a party to double tax avoidance treaties?
Bulgaria has concluded double tax avoidance treaties with 72 countries around the world, including USA, China, Germany, Japan and Russia. The full list is as follows:
Albania, Algeria, Armenia, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, People’s Rep. of Korea, Rep. of Korea, Kuwait, Latvia, Lebanon, Lithuania, Luxembourg, Malta, Moldova, Mongolia, Montenegro, Morocco, Netherlands, North Macedonia, Norway, Poland, Portugal, Qatar, Romania, Russia, Serbia, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, Syria, Thailand, Turkey, UAE, UK, Ukraine, US, Uzbekistan, Vietnam, Zimbabwe.
Is Bulgaria’s banking system stable?
In October 2020 Bulgaria joined the Single Supervisory Mechanism of the EU (the so-called Banking union) and the Single Resolution Mechanism for credit institutions. As of December, 2022, 25 banks were operating in Bulgaria, including 7 foreign banks’ branches. Currently, Bulgaria has one of the most stable banking systems in the EU.
Is Bulgaria politically stable?
Bulgaria has been a member of Word Trade Organization (WTO) since 1 December 1996. Bulgaria joined the North Atlantic Treaty Organization (NATO) on 29 March 2004. As of 1 January 2007 it is a member State of the European Union (EU). Bulgaria is expected to become a Schengen Area member in the following years.