Bulgaria - Tax Guide for Freelance Contractors

Tax residents in Bulgaria:          are liable to pay Bulgarian tax on their worldwide income,
Non tax residents in Bulgaria:   are liable to pay tax on Bulgarian-source income only.

Individuals will be regarded as tax residents:

•  if they have a permanent address in Bulgaria,
•  if their centre of vital interests is in Bulgaria, or
•  if they reside in Bulgaria for more than 183 days in any twelve-month period.

Individuals who have a permanent address in Bulgaria but whose centre of vital interests is not in Bulgaria are not considered Bulgarian tax resident.

Married persons are taxed separately.

Taxable income includes:

•  all remuneration, including bonus,
•  other benefits in cash and kind.
•  income from business or professional activities,
•  capital gains,
•  income from rent.

Certain types of income in 2010 do not constitute taxable remuneration:

• mandatory social security contributions,
• voluntary contributions to pensions, unemployment and life or health insurances (limited amount),
• allowance for business travel,
• pensions, scholarships,
• certain types of investment income.

There are no tax credits nor personal allowances (except for disabled individuals).

Income tax rates for 2010:

•  10.00% flat tax rate.

Filing date:

Annual tax returns must be filed by the 30th of April the following year.