Those who have resided in Bulgaria for more than 183 days in a fiscal year are liable to tax on world wide income. Married couples are taxed separately.
All taxable incomes received during the calendar year are taxable according to a progressive scale: | | INCOME TAX | | | TAXABLE INCOME, BGN (€) | MARGINAL TAX RATE | | Up to 2,160 (€1,112) | nil | | 2,160 to 3,000 (€1,545) | 20% on band over €1,112 | | 3,000 to 7,200 (€3,707) | 22% on band over €1,545 | | Over 7,200 (€3,707) | 24% on all income over €3,707 |
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A resident taxpayer can deduct the following from his taxable income: - Child relief
- BGN360 (€185) for each minor child (below 18 years old)
- BGN780 (€402) for two minor children
- BGN1,140 (€587) in total for three or more minor children
- Mortgage interest expenses
- Certain life insurance contributions
Коммунальные платежи и налоги в Болгарии Rental Income Rental income is taxed at the standard progressive rates. A fixed deduction of 20% the gross rent is allotted for income-generating expenses. Effectively, the tax rates are applied on 80% of the gross rent. |