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Business Taxes


Bulgarian taxation is generally regulated by the following tax laws:

  • Corporate Income Tax Act,
  • Income Tax on Natural Persons Act
  • Local Taxes and Fees Act
  • Valued Added Tax (VAT) Act
  • Tax and Social Insurance Procedure Act

The conventions for the avoidance of double taxation are also an important element of the Bulgarian tax system.

Capital Gains Tax

It is important to point out that according to the Bulgarian legislation there is no independent tax equivalent to the capital gains tax, existing under the Anglo-Saxon Law.

The profit made from transferring ownership or limited real rights over company's business assets is subject to tax, but as part of the company's annual profit. This profit is included in the aggregate annual profit of the company, which is subject to tax in the amount of 10 percent.