How much you pay in Bulgaria depends on how you earn, so here are all three pictures: an employment contract, self-employment and running your own company. Real headline rates, verified July 2026.
As an employee
Income tax: Flat 10%. Social contributions: ~13.8% employee.
The EU's joint-lowest flat personal rate, now with eurozone membership since January 2026. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a freelancer or sole trader
Income tax: Flat 10% with a 25% notional expense deduction (effective ~7.5% for freelancers). Social contributions: On a self-chosen base between the minimum and ~€2.1k/mo.
The notional deduction makes registered freelancers among the lightest-taxed in the EU. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
As a company owner
CIT 10%. Dividends 5%.
10% corporate plus 5% dividends is one of the lightest company combos in the bloc. Rates as of July 2026. Tax rules change every budget cycle and depend on your personal situation: verify with a licensed tax advisor before acting.
Two rules that apply everywhere
Tax residence usually follows your life, not your paperwork: spend 183+ days in Bulgaria (or keep your centre of vital interests there) and you generally owe taxes there regardless of visa or company setup.
Special regimes and treaty rules can change these numbers dramatically in both directions. This page is educational information, not tax advice: before you commit to a structure, have a licensed Bulgaria tax advisor confirm the current rules for your specific case.