Bulgarian Income Tax
Our tax guide for freelance contractors working in Bulgaria
Individuals who have a permanent address in Bulgaria or who stay in Bulgaria for more than 183 days in any 365-day period or who have their centre of vital interests in Bulgaria are treated as residents for tax purposes, and are taxable on their worldwide income. Non-resident individuals are taxable on their income from Bulgarian sources only. Individuals who are employed are subject to income tax on all remuneration, including bonuses and other benefits in cash and kind, but certain types of income do not constitute taxable remuneration, eg. allowances for business travel, and there are other exemptions (pensions, scholarships, certain types of investment income, etc.). As of 1 January 2008, the previous progressive income tax rates have been replaced by a flat tax rate of 10%. Therefore, there are no credits, nor personal allowances (except for disabled individuals).