Bulgaria tax guide: 10% flat, explained
The definitive numbers for Bulgarian tax in 2026: 10% corporate, 10% personal, 5% on dividends, and the social contributions that actually decide your take-home. Every figure is sourced and dated.
General information, not legal or tax advice.
10%
Corporate tax
Flat
10%
Personal income tax
Flat
5%
Dividend tax
~14.5%
EOOD combined
Profit to dividend
The headline rates
Bulgaria taxes company profit and personal income at the same flat 10%, with no brackets and no tax-free allowance. Dividends paid out of a company carry a further 5%. Those three numbers are the whole reason most people read this page.
| Tax | Rate | Applies to |
|---|---|---|
| Corporate income tax (CIT) | 10% | Company profit |
| Personal income tax (PIT) | 10% | Salary, most personal income |
| Dividend withholding tax | 5% | Profit distributed to owners |
| VAT (standard) | 20% | Goods and services above the threshold |
What an EOOD owner really pays
Take profit out of an EOOD as a dividend and you pay tax twice: 10% CIT on the profit, then 5% on what is left. Combined that is 14.5%, not 15%, because the 5% applies only to the 90% that survives the first layer.
10%
First: CIT on profit
5%
Then: on the dividend
14.5%
Combined effective
0.10 + 0.90 x 0.05
On top of tax, a manager who is an owner pays social contributions on their insurable income, which is where most of the real cost sits at lower incomes. See the section below and the take-home calculator.
The freelancer route: 7.5% effective
Register as a liberal profession and Bulgarian law deducts 25% of your gross as statutory expenses, no receipts required. The remaining 75% is taxed at 10%, so the effective income tax is 7.5%. Social contributions are separate and covered on the freelancer taxes page.
2026 status: what changed and what did not
- Rates unchanged. 10% CIT, 10% PIT, 5% dividend all held. The proposed dividend hike was dropped.
- Euro since 1 January 2026. Bulgaria uses the euro; all figures on this page are in euro.
- Insurable-income cap rises to EUR 2,300 from 1 August 2026.
- VAT registration threshold restated in euro at EUR 51,130, unchanged in real terms.
Written by
Petar Georgiev
Founder, BulgariaHQ
Petar runs Kohi Solutions Ltd, a Bulgarian EOOD registered in Veliko Tarnovo (EU VAT BG206220247), and has built and shipped software products from Bulgaria through it. He writes these guides from the paperwork he has actually filed, and cites the primary source for every number. He is not an accountant or a lawyer, and says so on every page that touches tax or immigration.
Last reviewed July 23, 2026
Frequently asked questions
Sources
Every figure on this page is checked against a primary source. Dates show when we last verified it.
- Corporate income tax, flat 10%PwC Worldwide Tax Summaries · checked Jul 23, 2026
- Personal income tax, flat 10%PwC Worldwide Tax Summaries · checked Jul 23, 2026
- Dividend 5% and income determinationPwC Worldwide Tax Summaries · checked Jul 23, 2026
- Social security contributions and the insurable-income capPwC Worldwide Tax Summaries · checked Jul 23, 2026
- National Revenue Agency (NRA)Republic of Bulgaria, National Revenue Agency · checked Jul 23, 2026
Read next
This page is general information, not legal, tax, or immigration advice, and no outcome is guaranteed. Rules and figures change; the review date above shows when this was last checked against the sources listed. Regulated services are provided by licensed professionals.
Social contributions and the cap
Contributions (pension, supplementary pension, health) are charged on your insurable income up to a monthly ceiling, above which the marginal social cost is zero. That ceiling is EUR 2,111.64 until 1 August 2026, and EUR 2,300 from then through 2028.