Europe
Bulgaria tax rates 2026
The EU's flat-tax pioneer, with personal and corporate rates both at 10%. It adopted the euro on 1 January 2026.
Worldwide (residence-based)
Last verified
The taxes
| Personal income (top) | 10%A flat 10% on personal income, unchanged after euro adoption. |
|---|---|
| Corporate income | 10% |
| Capital gains | 10%, taxed as income, though shares sold on an EU/EEA regulated market are exempt |
| VAT / DDS, the local name for VAT | 20% |
| Dividends (WHT) | 5% |
| Interest (WHT) | 10% |
| Royalties (WHT) | 10% |
| Social security (employee) | ~13.8% |
| Social security (employer) | ~19% |
| Wealth tax | None |
| Inheritance / estate | A municipal rate of 0.4-6.6%, with spouses and children exempt |
| Property tax | An annual municipal real estate tax of about 0.01-0.45% |
| Other | The euro was adopted on 1 Jan 2026 at a fixed rate of 1 EUR = 1.95583 BGN. A proposed dividend tax hike to 10% was rejected. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- Yes, leaving has a cost
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
There is no separate special regime. The 10% flat rate, 5% dividend tax and 0% CGT on EU/EEA-listed securities are the regime itself. Social security is capped, which matters for high earners.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to Bulgaria
The residency and citizenship routes that lead here, weighed against the tax picture above.