🇧🇬 Corporate Tax in Bulgaria

Headline rate: 10% flat

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.

Key Facts

Double tax treaties: 70
Memberships: EU, WTO, NATO
Legal system: Civil law
Fiscal year: Calendar year

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.