Bulgaria’s tax burden is among the lowest in the European Union.
Since 2007, Bulgaria has applied a flat tax of 10 per cent to both individuals and legal entities.
The tax system is therefore geared towards tax simplification.
VAT is 20%, and the refund system is very efficient and fast.
The tax authorities take a fair and cooperative approach towards taxpayers, and there are no systems of presumptive assessment or reversal of the burden of proof. Entrepreneurs are a resource for the national economy, so the authorities do not view the free exercise of business activity with suspicion.
A convention for the avoidance of double taxation is in force between Italy and Bulgaria.
Direct taxation is governed by CITA (Corporate Income Tax Act).
Taxation in Bulgaria: 10 per cent flat tax