Bulgaria: Living There

Bulgaria: Living There

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 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 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.

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