Bulgaria Tax for Non-Residents 2026: Owners and Managers

A foreign founder of a Bulgarian company meets three tax systems, not one: what Bulgaria withholds when money leaves the company, what your country of residence taxes when it arrives, and, if you run the company from home, the risk that your country taxes the company itself.

Bulgaria's part is the simplest: 5% on dividends, 10% on manager pay. This guide sets out all three layers, with the residence test and the treaty list.

5%Bulgarian tax on dividends paid abroad, before treaties

10%reported withholding on a non-resident manager's pay

183days in any 12 months make an individual Bulgarian resident

76tax treaties listed by PwC in 2026

Are you a Bulgarian tax resident?

You are resident in Bulgaria if any of these applies:

• you have a permanent address in Bulgaria, unless your centre of vital interests is elsewhere;
• you stay more than 183 days in any 12-month period;
• your centre of vital interests, family and economic ties, is in Bulgaria.

A resident pays 10% on worldwide income, and 5% on dividends. A non-resident pays only on Bulgarian-source income, which, for a company owner, means dividends and any pay from the company.

What Bulgaria takes from a non-resident

The three layers, step by step

1. 1
   The company10% Bulgarian corporate tax on profit
2. 2
   The payout5% Bulgarian tax withheld on the dividend
3. 3
   Your countryTaxes the dividend at its own rate, with a credit for the 5%
4. 4
   The checkIs the company really managed from Bulgaria, or from your home?

Layer one: the company. 10% on profit; see the corporate tax guide.

Layer two: the payout. 5% on dividends, withheld before the money leaves.

Layer three: your country. Most countries tax worldwide income of their residents. The Bulgarian 5% is then usually credited, so the total is your home rate, not 14.5%.

The risk most guides skip: where the company is run

Bulgaria treats a company registered there as Bulgarian. Your country may see it differently:

• Place of effective management. If every decision is taken from your flat in Berlin, Germany may treat the company as German resident.
• Controlled foreign company rules. Many countries tax a resident owner directly on the low-taxed profit of a foreign company, especially with little substance.
• Permanent establishment. Working for the company from home can create a taxable presence there.

What helps:

• a manager who actually works in Bulgaria;
• decisions taken and minuted there;
• local staff or an office, not just a registered address;
• Bulgarian bank and accounting.

Manager's pay and social contributions

If you pay yourself as manager, Bulgaria taxes that pay. Social contributions follow different rules:

Bulgarian contributions are capped at a maximum base of EUR 2,300 a month since 1 August 2026.

Treaties: which countries have one

Without a treaty, the Bulgarian 5% still applies and relief depends on your home country's own rules. Guides for each country of origin explain the details, such as founders from India or from Russia.

Year NCompany earns profit, manager paid monthly with withholding

By 30 Jun N+1Company files its return and pays 10%

On payoutDividend paid, 5% withheld and declared

Your filing dateDividend declared at home, Bulgarian tax credited

1. Year NCompany earns profit, manager paid monthly with withholding
2. By 30 Jun N+1Company files its return and pays 10%
3. On payoutDividend paid, 5% withheld and declared
4. Your filing dateDividend declared at home, Bulgarian tax credited