General Information on Personal Income Tax

Bulgaria levies a 10% flat rate of personal income tax on the worldwide income of its local tax residents.

Dividend and liquidation quotas income are subject to a 5% one-off tax.

Exemptions

Various types of income are exempt from personal income tax, such as:

  • capital gains from disposal of certain real estate
  • capital gains from disposal of shares traded on a regulated local, EU or EEA market
  • income from mandatory social insurance contributions in Bulgaria or abroad

Property acquired by means of inheritance or donation is not taxable income.

Deductions

Certain deductions from the annual taxable income are allowed:

  • personal mandatory insurance contributions
  • personal voluntary insurance contributions up to certain limits
  • certain donation expenses within the statutory limits, etc.