Living in Bulgaria: 10% tax, 5% dividends, and three residency criteria according to EURES

According to the European Commission's EURES page, a "local individual" in Bulgaria is someone who has permanent residence in Bulgaria, who stays there for more than 183 days in any twelve-month period, or whose center of vital interests is in Bulgaria. This page adds that a person with permanent residence is not considered "local" if their center of vital interests is not in Bulgaria. A "local" individual pays tax on their income from both Bulgarian and foreign sources. Income tax is levied at a flat rate of 10 %. Dividends are subject to a final withholding tax of 5 %. This page does not cover real estate, capital gains, local taxes, or inheritance.

Local individual: three criteria according to EURES

The European Commission's page on living and working conditions in Bulgaria (EURES portal, dated 05/03/2025) defines a "local individual" according to three criteria: permanent residence in Bulgaria, a stay of more than 183 days in any twelve-month period, or a center of vital interests in Bulgaria. It specifies that a person with permanent residence is not considered "local" if their center of vital interests is not in Bulgaria. It adds that these individuals pay tax on both Bulgarian and foreign-sourced income, and that foreign nationals only pay tax on Bulgarian-sourced income. The text of the Bulgarian law is not reproduced here; it should be consulted at the National Revenue Agency.

If you are also a resident of France, the 1987 Franco-Bulgarian convention sets out its own rule: a person is considered a resident of the state with which they have the closest personal and economic ties (Article 1, paragraph 3). Our page on this convention provides further details.

A single-rate tax of 10 %

The EURES website indicates that Bulgaria has applied a single personal income tax rate of 10% since 2008. The Bulgarian Ministry of Economy gives the same rate for employment income. A European Commission report published in 2026 confirms this rate of 10% and specifies that income from different sources is subject to it, with exemption thresholds varying according to the source.

For an employee, the taxable base is their gross salary minus the social security contributions deducted from their share. The 10% tax (%) is levied on the difference. The employer withholds the advance payment each month and pays it no later than the 25th of the month following the month in which the salary was paid (Ministry of the Economy website, updated on 18/06/2025).

The annual tax return required under Article 50 of the Personal Income Tax Act must be filed between January 10 and April 30 of the year following the year in which the income was earned, according to the same page. Employees are required to file the return personally if they receive other personal income unrelated to their employment, such as rent or income from civil contracts.

Dividends: 5 % retained by the company

The Bulgarian Ministry of Economy (page updated on 26/03/2021) states that dividends distributed to a natural person, whether Bulgarian or foreign, are subject to a final withholding tax of 5 % on the gross amount. The distributing company withholds the tax, declares it, and pays it to the National Revenue Agency. Payment is due no later than the end of the month following the quarter in which the general meeting approved the distribution. The page cites Article 194 of the Corporate Income Tax Law and Article 38 of the Personal Income Tax Law.

Dividends paid to a Bulgarian company or to a foreign company domiciled in the European Union or the European Economic Area are not subject to this withholding tax.

Social security contributions: extract of 2025 rates

Cleiss publishes the rates from January 1 to December 31, 2025, with values as of April 1, 2025. The monthly salary ceiling is BGN 4,130. The table is an excerpt: it does not include the first pillar for those born before 1960, the occupational pension fund for categories 1 and 2, or occupational accident contributions.

The Ministry of the Economy's website, updated on June 18, 2025, provides a different reference point: a total of 32.70 % to 33.40 % of gross remuneration, of which 13.78 % is deducted from the salary. The two figures have not been compared here: the applicable rate must be verified before any salary calculation.

A stay of less than three months

France Diplomatie states that citizens of the European Union are exempt from visa requirements and can stay for up to three months without further formalities, provided they have a valid passport or national identity card. The France Diplomatie website does not describe the requirements for longer stays.

A dividend of 100,000: a numerical example (fictitious profile)

Situation. Nikola, a fictitious profile, is a Bulgarian tax resident and a partner in a Bulgarian company. The shareholders' meeting decides to distribute 100,000 in gross dividends to him (assumed amount, in local currency).

Issue. He wants to know the amount withheld at source.

Strategy. He applies the final withholding of 5 % to the gross amount.

Result. The company withholds 5,000 and pays him 95,000. This calculation does not take into account any tax from another country, his other income, or French taxation, which we have not established.

What this page does not cover

This guide does not cover capital gains, real estate and local taxes, assets, inheritance, withholding tax on interest and royalties, or the tax regime for non-residents regarding their Bulgarian-sourced income. It relies on European sources and those of the Bulgarian Ministry of Economy, not on the text of the law on personal income tax or the website of the National Revenue Agency, which should be consulted before making any decisions. Local tax matters should be verified with a professional based in Bulgaria. French tax matters, including the departure tax return and the accounts to be declared, are addressed in our pages on tax residency and exit tax.

What changes depending on your situation

• The number of days spent in Bulgaria over twelve months.
• The location of your vital centers of interest.
• Your status: employee, partner in a company, other.
• The nature of your income: employment, dividends, rent, interest.
• Your status as a resident in another country.

The rule depends on your situation. No results are guaranteed.