Personal Taxation

Information on the personal taxation system in Bulgaria...

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
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