Let’s face it: navigating corporate tax regimes can feel like a maze designed to sap your time, resources, and entrepreneurial spirit. If you’re considering Bulgaria as a base for your company in 2025, you’re likely searching for clarity, efficiency, and—above all—a way to keep more of what you earn. This guide delivers a data-driven breakdown of Bulgaria’s corporate tax system, with actionable tips to help you optimize your fiscal footprint and minimize state-imposed costs.
Understanding Bulgaria’s Corporate Tax Rate in 2025
Bulgaria stands out in the European Union for its straightforward, flat corporate tax rate. As of 2025, the standard corporate income tax rate is 10%—one of the lowest in the EU. This flat rate applies to all corporate profits, regardless of income level or company size, making Bulgaria especially attractive for digital nomads, startups, and established businesses seeking predictability and simplicity.
| Tax Type | Rate | Notes |
|---|---|---|
| Standard Corporate Tax | 10% | Flat rate on all corporate profits |
| Alternative Gambling Tax | 5% / 15% | For organizers of gambling games (see below) |
| Tonnage Tax Regime | 10% | Applies to net tonnage for maritime operators |
| Global Minimum Tax (Top-Up) | 15% | For entities in scope of global minimum tax rules |
Key Features of Bulgaria’s Corporate Tax Regime
- Currency: Bulgarian Lev (BGN). As of early 2025, 1 BGN ≈ 0.56 USD.
- Assessment Basis: Corporate profits (no progressive brackets).
- No Minimum Holding Periods: There are no minimum or maximum holding periods for corporate tax purposes.
Alternative and Surtax Regimes
While the 10% flat rate covers most companies, Bulgaria applies alternative tax rates in specific cases:
- Gambling Organizers: Income from gambling games where the bet is included in the price of a phone or telecom service is taxed at either 5% or 15%, depending on the calculation basis.
- Tonnage Tax: Maritime operators can opt for a 10% tax on net tonnage, rather than standard profit-based taxation.
- Global Minimum Tax: As of January 1, 2024, entities subject to the OECD’s global minimum tax rules face a minimum effective tax rate of 15%. If your effective rate falls below this threshold, a top-up tax applies.
Case Study: How Much Would Your Company Pay?
Imagine your Bulgarian company earns 200,000 BGN (≈ $112,000) in profits in 2025. Under the flat regime, your corporate tax liability would be:
- 10% of 200,000 BGN = 20,000 BGN (≈ $11,200)
Compare this to Western European rates, which often exceed 20–30%, and the savings become clear—especially for location-independent entrepreneurs and digital nomads.
Pro Tips: Tax Optimization Tactics for Bulgaria in 2025
- Choose the Right Tax Regime
Pro Tip: If your business involves maritime shipping, evaluate the tonnage tax regime. For gambling-related activities, carefully assess which alternative tax rate applies to your revenue streams. - Monitor Global Minimum Tax Rules
Pro Tip: If your group is multinational and falls under the global minimum tax scope, ensure your effective Bulgarian tax rate meets or exceeds 15% to avoid unexpected top-up liabilities. - Leverage Bulgaria’s Flat Rate for Predictable Planning
Pro Tip: The absence of progressive brackets means your marginal tax rate never increases with higher profits. This predictability is ideal for scaling businesses and optimizing reinvestment strategies. - Stay Updated on Currency Fluctuations
Pro Tip: Since Bulgaria’s tax is assessed in BGN, monitor exchange rates to optimize cross-border profit repatriation and minimize conversion losses.
Summary: Why Bulgaria’s Corporate Tax Regime Appeals to Global Entrepreneurs
Bulgaria’s 10% flat corporate tax rate in 2025, combined with targeted alternative regimes and minimal bureaucratic hurdles, makes it a compelling choice for international entrepreneurs seeking to minimize fiscal drag. By understanding the nuances—especially around alternative taxes and global minimum tax rules—you can structure your business for maximum efficiency and freedom.
For further reading on Bulgaria’s tax system, consult the official Bulgarian National Revenue Agency or the European Commission’s company tax portal.