Personal Tax

Personal Tax

Personal Tax in BulgariaWe offer to all our clients the option to become Bulgarian residents as in this case there are a few advantages.

One-off Taxation of Certain Income

One-off tax is due on income received by non-resident individuals from:

  • Dividends and liquidation quotas distributed by a Bulgarian resident company;
  • Management and technical services fees;
  • Interest, royalties, franchising and factoring fees;
  • Income from hiring out movable and immovable property;
  • Capital gains from disposal of real estate and financial assets;
  • Certain other income.

One-off tax is due on dividends and liquidation quotas distributed to a Bulgarian resident by a non-resident entity.
EU resident individuals may declare deductible expenses and claim a corresponding refund of the one-off tax paid on a gross basis under certain conditions.

One-off tax rates:

  • 0% for capital gains from disposal of shares on a regulated Bulgarian / EU / EEA market by EU / EEA residents;
  • 5% for dividends and liquidation quotas;
  • 7% for income from voluntary life insurance received after the termination of the insurance policy (if older than 15 years); and
  • 10% for all other income.

The one-off tax rates may be reduced under an applicable tax treaty.