Bulgaria
Top Income Tax
10%
Marginal rate
Corporate Tax
10%
Standard rate
VAT / Sales Tax
20%
Standard rate
Capital Gains
10%
Standard rate
Overview
Bulgaria has the lowest flat tax rates in the EU at just 10% for both personal and corporate income. The extremely low cost of living makes it attractive for freelancers and remote workers. Sofia has a developing tech scene, though infrastructure lags behind Western Europe.
Income Tax Brackets
| Income Range (BGN) | Tax Rate |
|---|---|
| 0+ | 10% |
Flat 10% rate - one of the lowest in the EU.
Corporate Tax
Standard Rate
10%
Flat 10% - lowest in the EU alongside Hungary.
VAT / Sales Tax
Standard Rate
20%
Reduced Rates
9%
9% on hotel accommodation and restaurant food (temporary measure).
Capital Gains Tax
Standard Rate
10%
10% flat rate. Gains from EU/EEA regulated market shares exempt.
Social Security Contributions
Employee
13.78%
Employer
18.92%
Self-Employed
26.8%
Split between employee and employer. Covers pension, health, unemployment.
Pros & Cons
Pros
- Lowest income and corporate tax in EU (10%)
- Very low cost of living
- EU member state
- Growing tech scene in Sofia
Cons
- Lower quality infrastructure
- No digital nomad visa
- Complex bureaucracy
- Limited English in government offices
Living Indicators
Cost of Living Index
Very affordable
Quality of Life Index
Average
Best For
Data Sources
Tax rate data for Bulgaria is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- Bulgaria government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.