Page 15 - CEE Tax Guide 2025

– a wide range of other fees (such as tourist tax; Services exempt from VAT are exhaustively listed,
tax on the carriage of passengers by taxi; refuse such as financial and insurance services, transfer
collection fee) or other fees usually imposed of buildings, educational services, medical and social
for specific services, such as social services, services, etc.
technical, and other.
VAT payers are required to submit monthly VAT
VAT and other indirect taxes returns, sales and purchase registers, VIES, and
Intrastat returns.

VAT options in Bulgaria Applicable / limits Excise duties (on mineral oils, spirits, beer, wine,
tobacco and tobacco products, natural gas,
Distance selling EUR 35,790/year
electricity, and solid fuels).
Call-off stock
VAT group registration No Personal income tax /

Cash accounting – yearly EUR 500,000/ Social security system
amount in EUR (approx.) preceding 12 months
Personal income tax is applied at a flat rate of 10%
Import VAT deferment No
on most of the income. The tax rate for dividends
Local reverse charge Waste and related services or liquidation shares paid in favour of an individual
and agricultural production
(seeds and grain). is 5%. The tax rate for amounts received from the
expiry of life insurance, if its duration was more than
Option for taxation 15 years, is 7%.
letting of real estate
Income from employment and self-employment
supply of used real estate is subject to social security and health insurance
VAT registration Approx. EUR 84,875/ contributions. In the case of employment, the
threshold last 12 months (from employee’s contribution amounts to 13.78%
January 1, 2025). (10.58% social security and 3.2% health insurance).
For the employer, this contribution is 18.92%
The standard VAT rate is 20% and reduced rate (14.12% and 4.8%, respectively). There are different
is 9% or 0%. contribution rates for specific positions involving
higher risk (miners, pilots, workers in chemical
The tax rate is 9% for exhaustively listed supplies, and other harmful production facilities, etc.).
such as hotel services, books, baby items. The maximum assessment base for social and
Provision of a general tourist service, Intra- health insurance contributions is BGN 3,400
Community Delivery and other specific supplies are (approx. EUR 1,739).
subject to 0%.

Wage related taxes in Bulgaria Minimum wage Average wage in private sector
Exchange rate BGN/EUR 1.95 in EUR in BGN in EUR in BGN
551 1,077 1,291 2,525
Total wage cost 656 119.00% 1,537 119.00%
Social security contribution – employer 77 14.00% 181 14.00%

Health insurance – employer contribution 28 5.00% 65 5.00%
Gross salary 551 100.00% 1,291 100.00%
Employee’s contribution 77 14.00% 181 14.00%
Calculated personal income tax after employees’ 55 10.00% 129 10.00%
contributions
Net salary 419 76.00% 981 76.00%

Todor Todorov
Director Tax and Legal
Phone: +359 287 800 02
E-mail: todor.todorov@forvismazars.com

Central and Eastern European tax guide 2025 Forvis Mazars 15