Bulgaria · Guide
Bulgaria has the lowest headline corporate tax rate in the EU: 10%, unchanged since 2007, with no surtax and no minimum tax for small companies. When profit is paid out to an individual, a 5% dividend tax follows.
The combined figure is often rounded to 15%. It is 14.5%, and for some owners it is 10%. This guide works through the arithmetic, the taxes on payments abroad that catch foreign-owned companies, and the yearly calendar.
From profit to the founder's pocket
| Step | On EUR 100,000 of profit |
|---|---|
| Corporate tax, 10% | EUR 10,000 |
| Profit after tax | EUR 90,000 |
| Dividend tax, 5% | EUR 4,500 |
| Net to an individual owner | EUR 85,500 |
| Combined burden | 14.5% |
The Bulgarian dividend tax is only the Bulgarian part. A founder living in Germany or France pays tax there too, with a credit under the treaty; see tax for non-residents.
Tax estimate
How much tax could you save?Three questions, then the yearly difference between your current rate and three jurisdictions.
What is taxed, and who is resident
- Residence follows registration. A company incorporated under Bulgarian law with its seat in Bulgaria is tax resident there and taxed on its worldwide income.
- The base is accounting profit, adjusted for tax.
- Losses carry forward for five years; there is no carry-back.
- Dividends received from Bulgarian or EU and EEA companies are exempt.
- No holding regime and no general participation exemption beyond that.
The trap for remote founders: Bulgaria looks at registration, but the country where the manager lives may look at where the company is run. A company managed day to day from Paris can end up resident in both. The treaty tie-breaker then decides, and it is a real risk, not a theory.
Taxes on payments abroad
A Bulgarian company that pays foreign suppliers or its foreign owner withholds tax at source, unless a treaty or EU directive reduces it.
| Payment to a non-resident | Domestic rate | Common relief |
|---|---|---|
| Dividends to a company | 5% | 0% to an EU or EEA company |
| Dividends to an individual | 5% | Treaty may cap it |
| Interest | 10% | Treaty or EU directive |
| Royalties | 10% | Treaty or EU directive |
| Technical services: consultancy, marketing research, assembly | 10% | Treaty, often 0% if no permanent establishment |
Technical services are the surprise. A Bulgarian EOOD paying a consultant or marketing agency outside the EU may owe 10% unless it holds the documents to apply the treaty. Ask your accountant before the first invoice is paid.
Before paying a supplier outside Bulgaria, check:
- what the payment is: goods, ordinary services, or technical services, interest or royalties;
- where the supplier is resident, and whether a treaty applies;
- the documents the treaty relief needs, such as a certificate of tax residence;
- whether the supplier has a permanent establishment in Bulgaria.
Other taxes inside the corporate tax law
- A 10% tax on certain expenses: entertainment and representation, social benefits above the cap, and private use of company assets.
- Thin capitalisation: above a 3:1 debt-to-equity ratio, net interest beyond 75% of EBIT is not deductible.
- Interest limitation: net borrowing costs above EUR 3 million are capped at 30% of tax EBITDA.
- CFC rules, transfer pricing and exit tax under the EU anti-avoidance directives.
- Global minimum tax of 15% applies only to groups with EUR 750 million of revenue, not to a founder's EOOD.
The yearly calendar
- 1 Mar to 15 AprAdvance payments declared for the current year
- By 31 MarEarly filing and payment: 5% discount, capped at EUR 511
- By 30 JunAnnual return filed and balance paid
- By 30 SepAnnual financial statements filed
- By 15 NovLast date to change the advance payments
| Prior turnover | Advance payments |
|---|---|
| Up to about EUR 153,387 | None |
| Up to about EUR 1,533,876 | Quarterly, by the 15th after each quarter, none for Q4 |
| Above | Monthly |
| First year of a new company | None |
The bottom line
A Bulgarian company pays 10% on its profit, and 5% more when that profit is paid to an individual: 14.5% in total, not 15%. The rules most likely to cost a foreign founder money are not the rate but the 10% withholding on technical services paid abroad and the risk that the company is managed, and taxed, somewhere else.
corpsec registers Bulgarian EOODs and provides the registered address; tax filings are done by a Bulgarian accountant. See the Bulgaria formation service, or read the compliance calendar.
Frequently asked questions
What is the corporate tax rate in Bulgaria in 2026?
10% on taxable profit, the lowest headline rate in the EU, with no surtax and no minimum tax for small companies.
How much tax do I pay on dividends from a Bulgarian company?
5%, withheld by the company, for individuals and most non-residents. EU and EEA companies receive dividends free of Bulgarian withholding. Your country of residence may tax the dividend again, with a treaty credit.
Is the total tax in Bulgaria 15%?
No. 10% on profit, then 5% on the 90% left, gives 14.5% for an individual owner, and 10% for an EU or EEA company owner.
When is the Bulgarian corporate tax return due?
Between 1 March and 30 June of the following year. Filing and paying in full by 31 March earns a 5% discount, capped at EUR 511.
Does a new Bulgarian company make advance tax payments?
Not in its first year. Afterwards, small companies with prior turnover up to about EUR 153,387 make none; larger ones pay quarterly or monthly.
Does a Bulgarian company withhold tax when paying foreign suppliers?
On some payments, yes: 10% on interest, royalties and technical services such as consultancy and marketing research, unless a treaty or EU directive reduces it.
Sources
- Deloitte, Bulgaria Highlights 2026 (January 2026): 10% corporate income tax, residence, losses, withholding taxes on dividends, interest, royalties and technical services, thin capitalisation, interest limitation, CFC rules, filing between 1 March and 30 June
- PwC Worldwide Tax Summaries, Bulgaria, Taxes on corporate income (reviewed 31 December 2025)
- Innovires, Bulgarian corporate income tax 2026: Article 20 CITA, advance payment thresholds, first-year exemption, 5% early filing discount, 10% tax on certain expenses
- Innovires, Withholding tax and dividend tax in Bulgaria (2026)
Read on 26 October 2026: Deloitte's Bulgaria Highlights 2026 in full, PwC's summary reviewed on 31 December 2025, and Innovires on the Corporate Income Tax Act (CITA) and withholding taxes. The CITA itself, on lex.bg, could not be opened on the day of writing, so article numbers are those cited by these sources. The 14.5% combined rate is our arithmetic: 10% on profit, then 5% on the 90 left. Advance payment thresholds are lev amounts converted at 1.95583. Older pages still give 31 March as the filing deadline; current sources give 30 June. Treaty rates depend on each treaty and its conditions. This is not tax advice.