Bulgaria’s corporate tax regime offers straightforward terms for companies operating within its jurisdiction. This overview covers the current corporate tax landscape, including the main rate, alternative regimes, and key specifics in 2025.
Main Corporate Tax Rate in Bulgaria (2025)
Bulgaria is recognized as one of the most favorable EU jurisdictions for corporate tax, featuring a flat and highly competitive rate. This continues in 2025, reinforcing Bulgaria’s reputation as an efficient environment for corporate profits.
| Tax Type | Tax Rate (%) | Currency (BGN) | Tax Basis |
|---|---|---|---|
| Standard Corporate Income Tax | 10% | BGN | Corporate Profit |
The flat 10% corporate income tax rate applies broadly to Bulgarian resident companies and non-resident entities with permanent establishment in Bulgaria. The assessment is based solely on corporate profits, with no progressive brackets or additional basic surcharges beyond the core regime.
Alternative and Special Corporate Tax Regimes
Besides the standard flat tax, specific activities and company types may fall under alternative tax treatments or additional effective rates based on regulatory requirements introduced in recent years.
| Regime/Condition | Rate (%) | Details |
|---|---|---|
| Alternative tax for gambling income (bet included in telecom price) |
5% | Applied to income earned by gambling organizers where bets are included in the price of a phone or telecommunications service. |
| Alternative tax for gambling income (different calculation basis) |
15% | Specific calculation basis applies for certain gambling organizers using alternative metrics. |
| Tonnage Tax Regime | 10% | Applies to income generated from operating commercial maritime vessels and is assessed on the net tonnage. |
| Minimum Effective Tax Rate for Entities in Scope of Global Minimum Tax | 15% | Entities within the multinational scope are subject to a minimum 15% effective tax as of 1 January 2024, with a top-up tax if the actual rate falls below this threshold. |
No information is disclosed regarding minimum or maximum holding periods for qualifying for more favorable tax treatment, meaning standard rules apply for all entities unless stated.
Key Highlights for 2025
- Flat Rate: Bulgaria applies a flat corporate income tax of 10% (BGN), among the lowest in the EU.
- No Brackets: There are no progressive tax thresholds for standard corporate taxation – the flat rate applies to all taxable profits.
- Alternative Regimes: Special activities such as gambling or maritime operations may face distinct regimes, with rates between 5% and 15% depending on structure and assessment basis.
- Global Minimum Tax: Multinationals within the global minimum tax rules are subject to a 15% minimum effective rate, applied as a top-up if their actual effective tax rate is below 15%.
Example: Corporate Tax Comparison Table (BGN & USD)
| Tax Regime | Standard Rate (%) | Equivalent Rate (USD) * | Eligibility |
|---|---|---|---|
| Corporate Income Tax | 10% | 10% | All Bulgarian resident companies & local permanent establishments of foreign companies |
| Alternative Gambling Tax (basic) | 5% | 5% | Gambling income via specific telecom mechanisms |
| Alternative Gambling Tax (special calculation) | 15% | 15% | Alternative calculation for specific gambling organizers |
| Maritime Tonnage Tax | 10% | 10% | Qualified shipping income (net tonnage basis) |
| Global Minimum Tax (top-up if needed) | 15% | 15% | Entities in scope as per global tax rules |
*USD conversion is based on direct percentage equivalence, as rates are expressed as percentages of profit, not absolute BGN amounts. For up-to-date exchange rates, refer to the Bulgarian National Bank.
Pro Tips for Navigating Corporate Tax in Bulgaria
- If your company is involved in gambling or shipping-related business, ensure you assess carefully which regime—standard, gambling-specific, or tonnage tax—offers the most efficient structuring for your profits.
- For multinational groups, keep track of the minimum effective tax rate compliance: if you fall under the global minimum tax scope, a top-up tax may apply to ensure your overall effective rate reaches at least 15%.
- Take advantage of Bulgaria’s straightforward flat rate, but keep records precise and updated, as local authorities primarily assess on declared corporate profits with limited exceptions.
- Monitor for any regulatory updates from the Bulgarian National Revenue Agency for changes to assessment rules or specific sectors subject to alternative tax treatment.
In summary, Bulgaria maintains a highly competitive corporate tax regime with a flat 10% rate across the board. Additional or higher rates, including the global minimum tax obligations, may apply to specialized sectors or large multinational groups. Companies benefit from Bulgaria’s overall clarity and predictability in tax matters, making it an attractive destination for both established businesses and new market entrants. As always, carefully review which tax rules apply to your entity and confirm compliance via official government guidance to mitigate risk and maximize efficiency.