This article provides a concise overview of the individual income tax system in Bulgaria for 2025, including current tax rates and the overall tax framework relevant to individual earners and international professionals.
Bulgarian Individual Income Tax: Core Overview for 2025
Bulgaria’s individual income tax system is characterized by a notably straightforward, low-tax approach—a factor that continues to make it an attractive jurisdiction for many international professionals and asset holders. The core features of Bulgaria’s 2025 individual income tax framework are summarized below:
| Tax Component | Details |
|---|---|
| Tax Type | Flat Rate |
| Assessment Basis | Taxable Income |
| Standard Rate (%) | 10% |
| Currency | Bulgarian Lev (BGN) |
| Tax Brackets | None (flat rate applies to all income) |
| Surtaxes | None |
Flat Rate Structure Explained
Bulgaria applies a flat 10% tax rate to all individual taxable income, regardless of the amount earned. This means that whether your yearly income is modest or substantial, the tax rate you pay remains consistent—a significant contrast to the progressive tax structures found in many other European jurisdictions. There are no income brackets, supplementary surtaxes, or complex multi-tiered calculations in the Bulgarian system as of 2025.
No Surtaxes or Minimum Holding Periods
Current data indicates that there are no additional surtaxes applied to individual incomes in Bulgaria for 2025. In addition, there are no requirements or tax incentives tied to holding periods of income. This contributes to a very stable and simple individual income tax environment.
Practical Impact on Individual Taxpayers
The simplicity and predictability of Bulgaria’s tax framework provide a favorable environment for both local residents and those considering Bulgaria for professional relocation or investment. The use of the Bulgarian Lev (BGN) as the assessment currency means that foreign income may be subject to conversion upon declaration and taxation in Bulgaria, depending on residency and sourcing rules.
Standard Rate Illustration
| Annual Taxable Income (BGN) | Tax Rate (%) | Tax Payable (BGN) | Tax Payable (USD) (1 BGN ≈ $0.56 as of 2025) |
|---|---|---|---|
| 10,000 | 10% | 1,000 | $560 |
| 50,000 | 10% | 5,000 | $2,800 |
| 150,000 | 10% | 15,000 | $8,400 |
Regardless of income level, the 10% tax rate applies equally across the board. The figures above use an approximate 2025 exchange rate of 1 BGN = $0.56 for illustration.
Pro Tips for Bulgarian Income Tax Filers
- Double-check local residency rules to determine whether your global income is subject to Bulgarian taxation, as residency status significantly impacts your tax obligations.
- Retain documentation for all income sources and conversions, especially for income earned or held outside Bulgaria; this will streamline the annual filing process and support compliance.
- Monitor updates from the National Revenue Agency (NRA) at nra.bg for official announcements, regulatory changes, and tax calendar deadlines relevant to your fiscal year.
- If you receive income in foreign currencies, factor in current exchange rates, as you will need to report and pay taxes in BGN.
Further References
To summarize, Bulgaria’s 2025 approach to individual income taxation remains among the most straightforward in Europe—featuring a flat 10% rate, no additional surtaxes, and no progressive banding. For internationally mobile professionals or business owners, this transparent structure offers predictability and simplicity in annual tax planning. Always stay attuned to potential legislative updates from the Bulgarian authorities to ensure ongoing compliance and optimal tax outcomes.