Bulgaria's headline corporate income tax (CIT) rate is 10.
The headline personal income tax (PIT) rate is 10.
The standard VAT/GST (or equivalent consumption tax) rate is 20. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
An individual is a Bulgarian tax resident if they reside in Bulgaria more than 183 days in any 12-month period (resident status attaches to the calendar year in which the 183rd day is exceeded), have been assigned abroad by a Bulgarian company or the state, or have their center of vital interests in Bulgaria based on personal and economic ties. Where a double tax treaty applies, its residency provisions prevail over domestic law. Residents are taxed on worldwide income; non-residents only on Bulgaria-source income.
A foreign company is a CFC where it is taxed at a rate less than half the Bulgarian corporate rate and a Bulgarian resident holds, directly or indirectly, more than 50% of its capital, voting rights, or profit entitlement. The regime does not apply where the foreign company conducts substantial economic activity supported by adequate personnel, equipment, office space, and assets. Bulgarian taxpayers must maintain a special register of their CFCs.
Bulgaria applies two separate interest restrictions. A thin capitalization rule applies where the average debt-to-equity ratio exceeds 3:1 (non-deductible interest calculated by formula, with unlimited carryforward since a 2019 change removed the prior five-year limit); it excludes finance leases and bank loans unless related-party guaranteed, penalty interest, and capitalized interest. Separately, an EU ATAD-based interest limitation regime applies once net borrowing costs exceed EUR 3 million per year (below that threshold, only the thin capitalization rule can restrict deductibility); credit institutions are outside its scope.
Bulgaria maintains double tax treaties with more than 70 countries, including Germany, France, the UK, the Netherlands, Austria, and the United States.