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Personal Taxation


Personal taxation is determined by the Income Tax on Natural Persons Act and the Conventions for the avoidance of double taxation.

Taxable persons

Resident individuals: Residents are people who have a permanent address in Bulgaria or stay in Bulgaria for a period of at least 183 days in a twelve months period or whose center of vital interests is situated in Bulgaria.

Non-resident individuals: A person who does not have a permanent address in Bulgaria or does not stay in Bulgaria for a period over 183 days in a twelve months period or whose center of vital interests is not situated in Bulgaria is considered as non-resident.

The following types of income are subject to taxation:
Resident individuals are obliged to pay taxes on their incomes from sources both inside and outside of the Republic of Bulgaria, whereas non-resident individuals are obliged to pay taxes for their incomes from sources inside the Republic of Bulgaria.

Bulgarian law recognises the following types of income:

  • Income from employment
  • Income from working as a Sole proprietor
  • Income from other economic activity
  • Income of resident individuals from rent or from other payments received from providing a property for use
  • Income of resident individuals from transfer of property rights
  • Income from other sources
  • Income taxable with final taxes