TKEG Expat ™ (Malta) Bulgaria Corporate Tax Guide

n Bulgaria, the standard VAT rate is 20%, and the reduced rate is 9%. The 9% rate currently applies to infant food and hygiene products, books, and paper or electronic periodicals (such as newspapers and magazines). Certain transactions are subject to a zero rate, including intra-Community supplies, exports of goods to countries outside the EU, international transport of goods, and, under statutory conditions, certain goods and services related to aircraft and vessels. Certain services such as healthcare, education, finance, insurance, and gambling services are exempt without the right to deduct input VAT. Voluntary VAT registration is permitted; effective from January 1, 2026, the mandatory VAT registration threshold for domestic transactions in Bulgaria is EUR 51,130, calculated based on turnover for the current or preceding calendar year. For telecommunications, broadcasting, and electronically supplied services provided to non-taxable customers within the EU, VAT is generally levied at the customer's location and may be accounted for through the EU's One-Stop Shop (OSS) mechanism.

Corporate income is subject to CIT at a flat rate of 10%.

If the bet is included in the price of telephone or other electronic communication services, income received by the organizer of gambling games is subject to an alternative tax of 15%, calculated on the premium added to the price of such telephone or other electronic communication services.

There are no provincial or local government corporate income taxes in Bulgaria.

Transfer tax is levied on the value of transferred real estate or motor vehicles, with certain exemptions applicable; the rate ranges from 0.1% to 3%, as determined by each municipality.