Living in Bulgaria

Bulgaria is situated in South Eastern Europe and is bordered by Serbia and Macedonia to the west, Greece and Turkey to the south, the Black Sea to the east and Romania to the north. The capital is Sofia, Bulgarian is the official language and Cyrillic is the official script. Bulgaria has a population of 7.4 million people and the official currency is the lev (BGN), which is pegged to the euro at the fixed rate of EUR 1 for BGN 1,95583.

Bulgaria: tax haven of the Balkans

Bulgaria applies a worldwide income tax system and residents are taxable on their worldwide income. Bulgaria levies a flat personal income tax rate of 10%.

Businesspeople who are resident of Bulgaria can even reduce this tax rate of 10% to 5% by using a smart but legal tax-efficient company structure. Do not hesitate to contact us if you would like to investigate a tax-efficient Bulgarian solution for your personal situation.

Bulgaria: Walhalla with regard to social security contributions

The table below provides a summary of the Bulgarian situation:

Gross

Employer

Employee

Taxable income

Employee’s net pay

Total cost for Employer

Social security contributions

Social
security
contributions

Personal
income tax

17.80%

12.90%

10%

€ 255.68

€ 45.51

€ 32.98

€ 22.27

€ 222.70

€ 200.43

€ 301.19

€ 511.36

€ 91.02

€ 65.96

€ 44.54

€ 445.39

€ 400.85

€ 602.38

€ 1,124.98

€ 200.25

€ 145.12

€ 97.99

€ 979.86

€ 881.88

€ 1,325.23

€ 1,534.07

€ 200.25

€ 145.12

€ 138.89

€ 1,388.95

€ 1,250.05

€ 1,734.32

€ 2,045.43

€ 200.25

€ 145.12

€ 190.03

€ 1,900.31

€ 1,710.28

€ 2,245.68

The light blue and pink boxes clearly show that the social security contributions for both employer and employee are capped. This is extremely interesting for many overtaxed individuals and business owners.

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