Executive Summary
Bulgaria offers one of the most competitive tax systems in the European Union, with a flat corporate tax rate of 10% and personal income tax of 10%. The favorable fiscal environment is designed to attract foreign investors, startups, and multinational corporations.
10%
Flat corporate tax rate
10%
Flat personal income tax rate
Over 1,500
Companies benefiting from tax incentives in priority sectors
Flat Tax Rates
Bulgaria’s flat corporate and personal income tax rates of 10% are among the lowest in the EU. This simplicity and predictability reduce administrative burdens and make financial planning easier for businesses, encouraging investment and entrepreneurship.
Incentives for Investors
Bulgaria offers targeted incentives for priority industries such as IT, manufacturing, logistics, and renewable energy. Benefits include reduced taxes, grants, and fast-track licensing. This encourages both startups and large enterprises to establish or expand their operations in Bulgaria.
Impact on Tech & Knowledge Industries
Many IT companies, BPO centers, and knowledge-intensive enterprises benefit from Bulgaria’s favorable tax rates. For instance, companies employing software developers, engineers, financial analysts, and other specialists enjoy significant cost savings compared to other European countries, boosting profitability and investment returns.
Conclusion
Bulgaria’s competitive tax system creates a transparent, predictable, and business-friendly environment. With low tax rates, targeted incentives, and support for knowledge-based industries, the country remains a top destination for investors seeking growth and profitability in Europe.