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Accounting & Taxes in Bulgaria
Professional financial management and tax optimization for international businesses.
Accounting & Tax Services in Bulgaria
Bulgaria offers one of the lowest tax rates in the European Union, making it an incredibly attractive destination for startups, digital nomads, and corporate groups. A predictable tax regime provides an ideal foundation for business growth and capital accumulation.
We help you navigate the local regulatory requirements, establish your compliance pipeline, and legally optimize your operations with the help of a seasoned team of accounting and legal professionals.
- ✓10% Flat Corporate Tax — The lowest rate in the EU.
- ✓10% Flat Personal Tax — Flat tax rate on individual income.
- ✓5% Dividend Tax — Efficient repatriation of corporate profits.
Corporate Tax & Accounting
We offer cost-effective and secure accounting solutions to handle all your ongoing corporate requirements and maintain perfect standing with the NRA:
Full accounting preparation to benefit from the flat 10% corporate income tax rate.
Monthly VAT filing, VIES declarations, and proactive management of state queries.
Preparation of year-end balance sheets, income statements, and Commercial Register filings.
Processing employee salaries, social security declarations, and employment contracts.
Personal Tax & Expat Wealth
If you are an individual with international consulting, freelance, pension, or cryptocurrency investment income, we help you optimize your wealth legally:
Structuring your global earnings legally to secure a 10% personal income tax rate.
Accurate, timely preparation and digital filing of annual local personal tax declarations.
Leveraging local double-taxation avoidance treaties (DTAA) with your home jurisdiction.
Consultations on properly declaring and legal tax planning of cryptocurrency profits.
Our Monthly Accounting & VAT Workflow
1. Bookkeeping & VAT (1st – 14th)
- ✓Invoice Collection — Digital collection of all sales and purchase files.
- ✓Ledger Sorting — Verification, sorting, and booking in accounting databases.
- ✓VAT Return Compilation — Preparing sales/purchase ledgers and files.
- ✓NRA Submission — Digital filing of VAT return to tax agency by the 14th.
2. Payroll & Strategy (15th – End)
- ✓Payroll Declarations — Submitting social security cards to NRA by the 25th.
- ✓Corporate Payroll — Computing salaries, HR administration, and bank setups.
- ✓Management Reporting — Monthly P&L reporting and tax planning advice.
- ✓Annual Closings — Year-end corporate tax declarations and audit closings.
Our Accounting & Regulatory Standards
A secure financial architecture designed for international compliance, speed, and efficiency.
100% Tax Compliance
Fully certified financial accounting ensuring zero discrepancies under the Bulgarian Accountancy Act and NRA audits.
English-Speaking CPA
A designated senior accountant who understands your international business model and communicates in clear English.
Secure Digital Desk
Cloud-based document sharing, digital ledger maintenance, and secure encrypted access to all financial reporting.
Frequently Asked Questions (FAQ)
What are the thresholds and rules for VAT registration in Bulgaria?
As of recent updates, the mandatory VAT registration threshold in Bulgaria is BGN 100,000 (approx. €51,130) of taxable turnover in a 12-month period. However, companies providing cross-border services, selling digital services to EU consumers, or receiving invoices from foreign suppliers (like Google/Meta) must register for VAT under special articles with zero threshold before starting operations.
How does the 10% flat corporate tax rate work in Bulgaria?
Bulgaria taxes corporate profits at a flat rate of 10%. This corporate income tax (CIT) is calculated on your net profit after deducting valid business-related expenses. Profit repatriation is subsequently taxed at a low 5% dividend tax rate, making Bulgaria one of the most tax-efficient jurisdictions in the European Union.
What is the difference between holding a Bulgarian ID card (Lichna Karta) and being a tax resident?
Holding a residency card allows you to physically stay in the country but does not automatically make you a Bulgarian tax resident on your global earnings. To secure tax residency and qualify for the flat 10% personal income tax, you must either: (1) reside in Bulgaria for more than 183 days within any 365-day period, or (2) prove that your center of vital interests (habitual home, economic activity, family ties) is in the country under the Bulgarian Income Taxes on Physical Persons Act.
Are there double tax avoidance treaties (DTAA) in place?
Yes. Bulgaria has signed Double Taxation Avoidance Agreements (DTAAs) with over 70 countries worldwide, including the UK, USA, Canada, and nearly all European Union member states. These treaties ensure you are not taxed twice on corporate dividends, royalties, pensions, or personal consulting income.
What are the ongoing monthly compliance requirements for a Bulgarian company?
Operational companies must meet strict NRA deadlines: (1) monthly VAT returns and VIES declarations must be submitted by the 14th of the following month, (2) monthly payroll and social security filings by the 25th, and (3) annual financial statements and corporate tax returns (CIT declarations) by June 30th of the following year.
Need accounting that keeps your Bulgarian operation clean and predictable?
Share your business model and we will help you map the right accounting, tax, and reporting setup for Bulgaria.
- Support for ongoing bookkeeping, VAT, payroll, and filings.
- Practical tax guidance tailored to foreign-owned businesses.
- Clear next steps before you commit to a provider.
If you prefer direct contact, email or call us and we will point you to the right next step quickly.
Tell us what you need
Share a few details and we will come back with focused, practical guidance tailored to your situation.
We typically respond within one business day.