Bulgaria offers the most competitive tax system in the European Union: a 10% flat income tax (tied with Romania for EU's lowest) combined with relatively low 13.78% employee social security contributions, resulting in a total burden of about 22.4% for earners below the cap (the 10% income tax applies after employee contributions are deducted)—dramatically lower than most EU countries. There are no progressive tax brackets, and high earners benefit from a social contributions cap of €2,300 per month (raised from €2,111.64/month effective 1 August 2026 under the 2026 State Social Insurance Budget Act, so about €26,281 of annual pay is subject to social contributions in 2026 and about €27,600 in a full year at the new cap), meaning income above this threshold is only taxed at 10%. Dividends are taxed at just 5% (the lowest rate in the EU), making Bulgaria exceptionally attractive for entrepreneurs and investors. Interest income is taxed at 8% (reduced from 10% in 2025). Bulgaria introduced a digital nomad visa and is rapidly becoming a hub for remote workers, particularly in Sofia (the capital) and Plovdiv, thanks to its low taxes, affordable cost of living (€800-1,200/month), and fast internet infrastructure. Use our calculator to see how much you'd keep after Bulgarian taxes.
This hub links to every Bulgaria tax guide and calculator on CountryTaxCalc — covering income tax rates, and tools to calculate your take-home pay.
Bulgaria applies 10% flat income tax (lowest EU rate tied with Romania) + 13.78% social contributions (employee). Dividends: 5%, Interest: 8%. Social capped at €2,300/month (from Aug 2026). Use the calculator to estimate your take-home pay after income tax:
| Income | Rate |
|---|---|
| All employment income | 10% flat |
| Social contributions (employee) | 13.78% |
| Social contributions (employer) | 18.92-19.62% |
| Dividends | 5% |
| Interest income | 8% |
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