🇧🇬 Tax Overview — Bulgaria
Corporate tax, VAT/GST, and key tax information for businesses operating in Bulgaria.
Tax Treatment by Structure
Single-Member Limited Liability Company (EOOD)
Bulgaria applies a flat 10% corporate income tax rate on worldwide profits — the lowest in the EU. Dividends distributed to individuals are subject to a 5% final withholding tax. Dividends paid to EU parent companies that hold at least 10% for 2+ years are exempt under the EU Parent-Subsidiary Directive. VAT is charged at 20% (9% for tourism and hospitality). Social security contributions for employees total approximately 31–32% of gross salary, split between employer (~18–19%) and employee (~13%). Bulgaria does not have a separate municipal business tax.
Limited Liability Company (OOD)
Identical to the EOOD: 10% flat corporate income tax on worldwide profits. Dividends to individual shareholders attract a 5% withholding tax. EU Parent-Subsidiary Directive exemptions apply. VAT at 20%. Social security contributions split between employer and employee, totalling approximately 31–32% of gross salary. All partners who are also managers or employees must be covered under the Bulgarian social security system.
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.