Personal income tax in Bulgaria: a definite guide

Bulgaria has placed itself among the most attractive countries in Europe thanks to its easy and straightforward tax system and regulations, including personal income tax Bulgaria. 

In order to benefit to the maximum of the tax scheme in Bulgaria, it’s a good idea to count on the services of a company like Accountancy Bulgaria. Not only will their years of experience be a valuable asset, but they can take care of all the bookkeeping needs and tax reports, as well as guide you to more advantageous options. It all starts with a free consultation. 

READ ALSO: Looking to move your company to Bulgaria? All you need to know

Who is subject to personal income tax in Bulgaria?

In Bulgaria, a tax resident is a person that:

• has a permanent address in Bulgaria;
• rresides in Bulgaria for over 183 days in a year period;
• is sent abroad by the Bulgarian government for specific reasons.

Bulgarian tax residents are taxed on their income generated anywhere in the world, while non-residents are taxed in Bulgaria only for their income generated within the country. 

How much is personal income tax Bulgaria?

Personal income tax in Bulgaria is 10% flat rate.

The tax rate for Bulgarians is 10% on all of their generated income, regardless of where it comes from (Bulgaria or somewhere abroad). Non-residents are also charged a flat rate of 10% as personal income tax, however, this is only on the income generated within the borders of Bulgaria.

Defining taxable income

What income is actually subject to personal income tax? 

Income from employment is taxable. Salary or wages, including bonuses and overtime pay, as well as certain compensations and benefits.

Bulgarian tax residents are also subject to paying personal income tax on capital gains from investments during their residency. Foreign tax residents are only subject to paying personal income tax on capital gains that come from sources in Bulgaria.

Dividend income is also taxable, but instead of applying a 10% flat rate, the gains from dividends and liquidations are a 5%

READ ALSO: Tax in Bulgaria: Complete Guide on BG Tax Rates

Reasons to have an accountant in Bulgaria

The list of reasons to have an accountant in Bulgaria is long. While we mentioned the straightforward tax system in Bulgaria, this doesn’t mean it is something easy to do for anybody, including the fact that the language barrier, which is usually required for official documents, could be a challenge in itself. 

Having an accountancy company in Bulgaria can help you grow your business and also be an asset to manage your personal income tax in Bulgaria.

These are some of the many things Accountancy Bulgaria can help you with regarding your bookkeeping and accountancy needs in Bulgaria, among which is personal income tax.

• Keep your bookkeeping and daily accounting up to date and deal with daily accountancy needs.
• Prepare and present tax reports, and deal with audits in a more efficient way, leaving you to use your time to focus on growing your business.
• Deal with VAT refunds.
• Accountancy Bulgaria experts speak different languages, so that will make it easier to deal with the local regulations and requirements.
• Accountancy Bulgaria can help your business grow, get rid of unnecessary costs, and unlock your business potential.
• Accountancy Bulgaria can also help take care of your personal income tax Bulgaria.
• Accountancy Bulgaria experts can also advise and provide valuable insight into company formation Bulgaria.

The most important factor in choosing an accountancy company is one you can trust. And we trust no one like we trust Accountancy Bulgaria, experts with decades of experience, offering a wide variety of services that can be tailored to your specific needs, and an exemplary reputation. 

Conclusion

Personal income tax Bulgaria is a flat rate of 10% of the taxable income that individual perceives.

There is no doubt that the smartest move in order to comply with the tax regulations and requirements is to engage the services of Accountancy Bulgaria and let them take care of your accounting and finances.