Tax
A 10% flat tax with a 15% domestic minimum top-up
Bulgaria charges a 10% flat rate on personal and corporate income, the lowest headline pair in the EU, with 20% standard VAT. Since 2024 large groups within scope of the EU minimum tax directive face a 15% qualified domestic top-up tax.
Key rules
- Personal and corporate income tax are both a flat 10%.
- Standard VAT is 20%, with 9% for accommodation and defined supplies.
- In-scope multinational groups pay a 15% domestic minimum top-up tax.
- Dividends to individuals bear a final 5% withholding tax.
Governing law
- Personal Income Taxes Act (2006)
- Corporate Income Tax Act (2006)Includes the Pillar Two top-up rules.
- Value Added Tax Act (2006)
- Tax and Social Insurance Procedure Code (2005)
In practice
The flat rate is only half the picture: social and health contributions on a capped income base often exceed the income tax itself for employed and self-employed people alike.