Bulgaria - Tax Guide for Freelance Contractors
Welcome to our guide to Bulgarian Taxation. You will find a wealth of information which will be useful if you plan to work in, or place consultants in, Bulgaria.
Our tax guides give a general overview of the actual taxation rates and rules at the time of writing. There are of course many ways to legally reduce tax or social security burdens in Bulgaria. Please contact us for more information or an actual breakdown of your situation, and to find out more about our range of payroll and contact management services in Bulgaria.
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Bulgarian Income Tax
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Umbrella and Contract Management Services in Bulgaria
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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 bonuses,
- other benefits in cash and kind,
- income from business or professional activities,
- capital gains,
- income from rent.
Certain types of income in 2012 are tax-exempt:
- income under voluntary pension schemes received upon retirement,
- interest on bank deposits.
Certain deductions for 2012 include:
- certain social security contributions,
- certain donations to charitable organisations.
Tax credits are available for early paper filing or electronic filing.
Income tax rates for 2012:
- 10.00% flat tax rate.
Filing date:
Annual tax returns must be filed by the 30th of April the following year.