Regime Rate
10%
Under the Flat Tax
Standard Top Rate
10%
without this regime
Duration
Unlimited
No expiry — permanent regime
Target Profile
Flat Rate
Bulgaria
Tax Savings Illustration
Example: €150,000 Annual Gross Income
Under Flat Tax
€15 000
Standard Rate
€10 500
Annual Saving
+€0
Eligibility Requirements
Who qualifies?
- All residents and companies
How the Regime Works
Full details
Joint-lowest flat rate in EU: 10% on personal income and 10% on corporate profits. No minimum tax or alternative minimum. Dividends paid to residents: 5% final WHT.
Regime vs Standard Rates in Bulgaria
| Tax Type | Standard Rate | Under This Regime | Saving |
|---|---|---|---|
| Income Tax (top rate) | 10% | 10% | — |
Frequently Asked Questions
What is the Flat Tax in Bulgaria?
The Flat 10% Income + 10% Corporate Tax is a special tax regime in Bulgaria that provides 10% flat rate to qualifying individuals or entities. Joint-lowest flat rate in EU: 10% on personal income and 10% on corporate profits. No minimum tax or alternative minimum. Dividends paid to residents: 5% final WHT. Legal basis: Income Taxes on Natural Persons Act; Corporate Income Tax Act.
Who is eligible for the Flat Tax?
Eligibility for the Flat Tax is limited to: All residents and companies. Applicants typically must not have been Bulgaria tax residents during a specified prior period. Always verify current conditions at the source: Income Taxes on Natural Persons Act; Corporate Income Tax Act.
How much tax do you pay under the Flat Tax?
Under the Flat Tax, you pay 10% flat rate on qualifying income — significantly lower than Bulgaria's standard top rate of 10%. On €150,000 gross, you save thousands of euros per year.
How long does the Flat Tax last?
The Flat Tax is a permanent regime with no set expiry — it applies for as long as you continue to meet the eligibility criteria.
How do I apply for the Flat Tax?
Application procedures for the Flat Tax are set out in Income Taxes on Natural Persons Act; Corporate Income Tax Act. You typically need to file a formal application with Bulgaria's tax authority after establishing residency. Consult a local tax advisor for guidance.
Other Special Regimes to Compare
Disclaimer: This information is for general guidance only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making residency or tax planning decisions.