Bulgaria tax calculator
See how much your Bulgarian company keeps after tax: 10% flat corporate tax + 5% dividend tax, among the lowest in the EU.
Corporate tax 10%, dividend tax 5% (a proposed rise to 10% was dropped). Excludes social security. Current as of 23 Sept 2026. See the corporate tax guide.
Two layers, both flat
Profit in a Bulgarian company is taxed twice, but at low flat rates: 10% corporate tax at company level, then 5% when profit is distributed to the owner. Retained profit is not hit by the second layer at all.
| Step | Rate | On €50,000 profit |
|---|---|---|
| Corporate tax | 10% | €5,000 |
| Dividend tax on full distribution | 5% | €2,250 |
| Net to the owner | ≈14.5% total | €42,750 |
What the figure does not include
Taxable profit is the accounting result adjusted under the Corporate Income Tax Act, so it is not simply revenue minus bank outgoings. Social security for an owner-manager, VAT and payroll are separate. See the corporate tax guide, VAT calculator and cost of employing someone.
Rates current as of 23 Sept 2026. Indicative only, not tax advice.
Bulgaria tax calculator: FAQ
What is the corporate tax rate in Bulgaria?
A flat 10% on taxable profit, among the lowest in the EU. On €50,000 of profit that is €5,000.
How much tax is there on taking profit out?
Dividends are taxed at 5%. On €50,000 of profit: €5,000 corporate tax, then €2,250 dividend tax. €42,750 reaches the owner, an effective burden of about 14.5%.
Did the dividend tax rise to 10%?
The increase was proposed in the 2026 draft budget but was dropped; the 2026 State Budget Act (State Gazette No. 69 of 31 July 2026) leaves the rate at 5%.
Is tax withheld when I pay dividends abroad?
For individual shareholders, Bulgarian or foreign, the company withholds 5% when it pays the dividend, and a double tax treaty can lower the rate for non-residents. Dividends paid to Bulgarian companies are not taxed, and those paid to companies resident in the EU or EEA are exempt from withholding tax (Art. 194 of the Corporate Income Tax Act). Companies outside the EU/EEA pay 5% unless a treaty lowers it.
Does this include social security?
No. An owner-manager may also owe social security contributions. See social security for owners and managers.
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