Quick answer
Bulgaria taxes personal income at a flat 10% in 2026, on salary, freelance profit, rent and most capital gains. Dividends are taxed at 5%, and gains on shares sold on EU regulated markets are tax-free. There is no tax-free allowance, but freelancers deduct 25% of income as statutory expenses before tax.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Find my savings →You are moving to Bulgaria, already live there, or earn Bulgarian income from abroad. After reading, you will know how much you really pay in 2026, how each type of income is taxed, and the legal ways to pay less.
Bulgaria personal income tax in 2026: the key figures
| Item | Rule in 2026 |
|---|---|
| Income tax rate | 10% flat on employment, freelance, rental and most investment income |
| Tax-free allowance | None |
| Dividends | 5% final tax |
| Bank deposit interest | 8% final tax |
| Freelancer statutory deduction | 25% of income (40% for authors, artists and farmers) |
| Social contributions (employee share) | About 13.8% of gross pay, up to a monthly ceiling |
| Tax residency | 183 days in any 12-month period, permanent address, or centre of vital interests in Bulgaria |
| Annual return | Due by 30 April of the following year |
Is this guide for you?
Read on if you…
- work in Bulgaria as an employee or as a self-employed freelancer;
- invest in shares, funds, crypto or property while living in Bulgaria;
- receive Bulgarian income while living in another country.
Probably not your case if you…
- earn through a Bulgarian company and pay yourself in dividends, see corporate income taxes in Bulgaria;
- are not sure yet whether you are resident, start with tax residency in Bulgaria.
How much income tax do you really pay in Bulgaria?
One rate, 10%, applies to almost every type of income. There is no progressive scale and no basic allowance. What changes your bill is the deductions you get before the 10%.
Employees
Your employer withholds social contributions first. Then 10% income tax applies to what is left. Contributions stop once your salary passes the monthly ceiling, so high earners pay a lower effective rate.
Freelancers (self-employed)
You deduct 25% of gross income as statutory expenses – a flat allowance, no receipts needed. You then deduct your social contributions, paid on a base you choose between the minimum and maximum. Tax is 10% of the rest.
Freelancers pay quarterly advances and settle the balance in the annual return. Want lower bills? See our guide to personal tax deductions and benefits in Bulgaria, which covers child relief, donations and voluntary pension contributions.
How is investment income taxed?
Here is where Bulgaria gets interesting. Some investment income is fully exempt, the rest is mostly taxed at 10%.
| Asset type | Tax for residents in 2026 | Exemption or holding rule |
|---|---|---|
| Shares and funds on an EU/EEA regulated market | 0% | Exempt, no minimum holding period |
| Other shares (private sales, non-EU exchanges) | 10% on net gain | None |
| Crypto-assets | 10% on net gain when sold for fiat | None; frequent trading may be business income |
| Residential property | 10% on gain | One home per year exempt; up to two properties held over 5 years exempt |
| Dividends | 5% final | Rate under review for 2026 |
| Bank deposit interest | 8% final | Interest on government bonds exempt |
Good news: if you trade ETFs through an EU broker on a regulated exchange, your gains are usually tax-free. Keep proof of where each trade was executed. For the detail, read capital gains tax in Bulgaria and cryptocurrency taxes in Bulgaria.
Residents vs non-residents: who pays what?
Your tax residency decides the scope. You are resident if you spend more than 183 days in Bulgaria in any 12-month period, have a permanent address there, or your centre of vital interests – where your home, family and main business are – is in Bulgaria.
- Residents pay on worldwide income. Foreign tax is credited under the relevant treaty.
- Non-residents pay only on Bulgarian-source income, usually a 10% final withholding tax. Dividends are taxed at 5%.
Bulgaria has no exit tax on unrealised gains for individuals. Leaving cleanly still takes paperwork, explained in ceasing your tax residency in Bulgaria.
How do you file and pay?
- Register with the National Revenue Agency and get a personal identification code or qualified e-signature.
- Pay advances each quarter if you freelance or earn rent, by the end of the month after each quarter.
- File the annual return online by 30 April, with annexes for each income type.
- Pay the balance by the same date. Late payment adds statutory interest.
Example – Marco, Italian freelance developer in Plovdiv
Marco invoices EUR 60,000 in 2026. He deducts the 25% statutory allowance, EUR 15,000, leaving EUR 45,000. His social contributions at the maximum base cost roughly EUR 7,700. Taxable income is about EUR 37,300, so income tax is EUR 3,730. He also sells EU-listed ETFs for a EUR 8,000 gain, which is exempt. Total tax and contributions: about 19% of his invoices.
Marco's bill has three moving parts. Yours probably does too.
Find my savings and see how your income mix is taxed in Bulgaria.
Find my savings →Common mistakes (and what they cost)
- Assuming all share gains are exempt → sales on non-EU exchanges or private deals are taxed at 10%, plus interest if undeclared.
- Forgetting foreign income in the return → residents owe tax on it, and fines apply for incomplete declarations.
- Skipping quarterly advances as a freelancer → late-payment interest builds up until 30 April.
- Keeping a Bulgarian address after leaving → you may stay resident and pay on worldwide income.
- Not keeping crypto records → you cannot prove your cost basis, so the whole sale price may be taxed.
Frequently asked questions
Is Bulgarian income tax really a flat 10%?
Yes. Employment income, freelance profit, rent, capital gains and crypto gains are all taxed at 10% under the Personal Income Tax Act. There is no progressive scale and no tax-free allowance. Only a few income types use other final rates, mainly dividends at 5% and bank deposit interest at 8%. Social contributions come on top for workers.
Do I pay tax on my worldwide income in Bulgaria?
Only if you are a Bulgarian tax resident. Residents are taxed on worldwide income and must declare foreign salary, dividends and gains in their annual return, claiming credit for foreign tax under a treaty. Non-residents pay only on Bulgarian-source income, usually through a 10% final withholding tax, or 5% on dividends.
Are gains on shares tax-free in Bulgaria?
Gains on shares and funds sold on a regulated market in Bulgaria, the EU or the EEA are exempt, whatever the holding period. Gains on shares sold privately, on non-EU exchanges or through some foreign brokers are taxed at 10%. Keep broker statements showing where each trade was executed, because the exemption depends on the market.
How is crypto taxed for individuals in Bulgaria?
Crypto gains are taxed at 10% when you sell for euros or another fiat currency. You declare the yearly net result in a dedicated annex of the annual return. Mining and regular trading can be treated as business income instead. The rules on crypto-to-crypto swaps are less settled, so keep a full transaction log.
When is the Bulgarian annual tax return due?
The annual personal income tax return is due by 30 April of the following year, together with any balance of tax. You file it online with the National Revenue Agency using a qualified e-signature or a personal identification code. Employees with only one employer and no other income can often skip the return.
Does Bulgaria charge an exit tax when I leave?
Bulgaria does not tax individuals on unrealised gains when they move abroad. What matters is proving that your residency really ended, by deregistering your address and showing your new home elsewhere. Otherwise the National Revenue Agency may still treat you as resident and tax your worldwide income.
Related guides
- Tax residency in Bulgaria: the 183-day and vital-interests tests
- Personal tax deductions and benefits in Bulgaria
- Capital gains tax in Bulgaria
- Crypto taxes in Bulgaria
- Tax incentives for expats and digital nomads in Bulgaria
- Bulgaria tax landscape overview
- How Estonia's flat income tax compares
- All country tax guides
Sources
- National Revenue Agency of Bulgaria
- Ministry of Finance of Bulgaria
- National Social Security Institute
- State Gazette of Bulgaria (official legislation)
- European Commission – Taxation and Customs Union
- PwC Worldwide Tax Summaries – Bulgaria individual taxes (secondary cross-check)
This guide is general information, not personalised tax advice. See how we research and review.
A flat 10% still leaves room to pay less.
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