Tax rates and social security contributions in Bulgaria
In 2025 tax rates and social security contributions in Bulgaria remains unchanged. However, the monthly expenses may increase due to the increase of the minimum wage and the minimum insurance thresholds which are different for each business and profession.
Here is a brief overview of 2025 tax rates and social security contributions in Bulgaria:
CORPORATE TAX
The corporate tax rate remains at 10% in 2025.
The tax on dividends and liquidation shares remains at 5% in 2025.
Annual tax returns must be completed and submitted to the National Revenue Agency by no later than 30 June of the following year. The annual activity report shall be submitted together with the annual tax return. The taxable persons which did not carry out activity during the tax period shall not submit an annual tax return and annual activity report.
The companies shall pay the corporation tax for the 2020 on or before 30 June 2025.
INCOME TAX FOR INDIVIDUALS
From 1st of January 2025 the minimum monthly wage in Bulgaria is in the amount of 1077 BGN (= 551 €).
The annual rate of the income tax for individual single taxpayers in Bulgaria also remains at 10% in 2025.
For income from employment relationships the employer is obliged to withhold monthly advance tax at the rate of 10% of the monthly tax base. Monthly tax base is determined, as the taxable income from employment, calculated for the respective month, is reduced by the withheld by the employer mandatory contributions, which are paid by the individual under the existing social legislation in Bulgaria. When during the respective month are made only partial payments for the current or for another month, the employer pays tax, determined on the gross amount of the partial payments.
The advance tax, which the employer is obliged to withhold, should be submitted by no later than 25th day of the current month following which the tax is withheld or partial payments are made.
VALUE ADDED TAX
The 2025 tax rate of VAT in Bulgaria remains 20% for all taxable supplies, unless explicitly indicated as zero-rated.
The reduced tax rate of 9% is applied to:
- supplies related to the provision of tourist accommodation services in hotels and similar establishments;
- supplies of books on physical carriers or carried out electronically or both (including textbooks, cognitive booklets and study sets, children’s picture, drawing and colouring books, music printed or in manuscript form), other than publications which are fully or mainly intended for advertising, and other than publications which are fully or mainly composed of video content or audio-music content;
- food suitable for babies or for infants;
- dipers and napkin liners for babies;
- supply of single service to tourists, as well as excursions organised by tour operators and tourist agents with occasional bus transport of passengers;
The tax period for VAT reporting is one month and coincides with the calendar month. For each tax period, the companies submit a VAT return and accounting registers for VAT to the National Revenue Agency up to the 14th day of the month, following the tax period to which they relate.
In case of intra-Community supplies, supplies as an intermediary in a three partite operation or supply of services with location of performance on the territory of another Member State, together with the VAT return, the company submits and VIES-declaration for the purposes of international exchange of tax information. Due to Brexit, as of 1 January 2025, the VAT identification numbers of UK traders starting with the prefix “GB” will not be valid for the purposes of intra-Community trade. Companies from Northern Ireland who trade in goods within the European Union under the Protocol on Ireland / Northern Ireland will be issued with new VAT identification numbers with the prefix “XI”.