Taxation in Bulgaria

Flat-tax system is introduced in Bulgaria - a single 10% rate applied on personal income since and a 10% rate applied on corporate income. Value-added tax in Bulgaria is a 20%, with the exception of hotel services, where a reduced rate of 9% is applied.

In Bulgaria taxpayers are released from payment of corporate tax in regions with high unemployment rates. In 2014 more than 2/3 of municipalities 176 (of total 265 in Bulgaria) had 25% higher than the average rate of unemployment for the country and there is 0% corporate income tax.

Bulgaria is the second least tax burdened country in the EU as of 2012: The overall tax-to-GDP ratio in Bulgaria is 27.9% for 2012, compared to an EU average of 39.4%.

 

 

Top statutory income tax rates and standard VAT rates (2014), %

Source: Eurostat