Taxes in Bulgaria
The Bulgarian taxation system is based on the common European recommended schemes, taking into account the loyal policy of the local tax department. Therefore, today, when registering a company in this jurisdiction, you should remember about such features of local taxation as:
- The usual form of a business pays taxes on its general income. If we are talking about a branch, then this form of an organization pays taxes only on its profit, not including the profit of the parent company.
- The tax base for legal entities does not include dividend income paid by the company.
What are the taxes
Taxes in Bulgaria are balanced to ensure a combination of high living standards and social responsibility. The tax policy of the state is very effective in covering the main items of expenses, as well as the ability to provide favorable conditions for the development of entrepreneurship and attracting foreign capital to the country.
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Tax system
There are direct taxes, indirect taxes, and fees in Luxembourg jurisdiction. Each group has Its own rules and conditions.
Tax rates
The table below provides a list of some of the most frequently encountered types of taxes along with their corresponding rates.
| Tax | Tax Rate |
|---|---|
| VAT | 20% |
| Corporate income tax | 10% |
| Personal income tax | 10% |
| Dividend tax | 5% |
| Capital Gains tax | 10% |
| Property tax | 0.01% – 0.45% |
| Inheritance tax | 0.4% – 6.6% |
| International tax | 10% (corporate and individual income tax) |
| Cryptocurrency tax | 10% (personal income tax), 15% (professional activity) |
Business in Bulgaria
Our company provides services for setting up a company in Bulgaria. The specialists of our company have the necessary knowledge, experience and qualifications. We can offer a consultation with taxes in Bulgaria. In addition, we also provide business support, accounting and other services necessary for your business. Our specialists have vast experience in this field of activity. We will be happy to help you successfully open a business in Bulgaria.
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Disclaimer
Tax laws and regulations are continuously evolving and can differ depending on individual situations. The information shared here serves as general guidance and might not represent the latest updates. It is strongly advised to seek assistance from a qualified tax professional for personalized and current advice tailored to your circumstances.