Quick Answer: What Is Child Tax Relief in Bulgaria?
Child tax relief in Bulgaria allows parents to reduce their annual taxable income by 6,000 BGN for one child, 12,000 BGN for two, or 18,000 BGN for three or more, saving up to 1,800 BGN per year at the flat 10% income tax rate. Parents of children with disabilities can claim an additional 12,000 BGN deduction. The benefit may be applied monthly through your employer or claimed back via your annual tax return
Raising kids is expensive—but Bulgaria’s child tax relief can take a real bite out of your taxes. If you work in Bulgaria (Bulgarian, EU, or other resident), it’s worth knowing how it works so you don’t leave money on the table. This quick guide covers who qualifies, how to apply, and what you can claim for 2025.
What Is Child Tax Relief in Bulgaria?
Child tax relief in Bulgaria is a tax deduction that reduces your annual taxable income based on the number of dependent children you have. Unlike a direct cash payment, this relief lowers the amount of income subject to Bulgaria’s 10% personal income tax rate, resulting in significant savings on your tax bill.
The relief is regulated under Articles 22c and 22d of Bulgaria’s Personal Income Tax Act (PITA) and applies to children under 18 years of age who are residents of Bulgaria or another EU/EEA member state.
This tax relief is separate from Bulgaria’s child benefits program, which provides monthly cash allowances of up to 50 BGN per child depending on family income thresholds. Tax relief reduces your taxes, while child benefits are direct payments from the state
How Much Can You Save with Child Tax Relief in Bulgaria?For the 2025 tax year, the child tax relief amounts remain consistent with previous years, providing the following reductions to your annual taxable income:
| Number of Children | Annual Tax Base Reduction | Tax Savings (at 10% rate) |
|---|---|---|
| 1 child | 6,000 BGN | up to 600 BGN |
| 2 children | 12,000 BGN | up to 1,200 BGN |
| 3+ children | 18,000 BGN | up to 1,800 BGN |
| Each disabled child* | 12,000 BGN | up to 1,200 BGN |
| * Additional deduction per disabled child. | ||
Important Note on Disabled Children
Parents of children with disabilities (with 50% or greater permanent disability) can claim both the standard child tax relief and an additional disability relief, each offering a 12,000 BGN reduction (up to 1,200 BGN in savings). This flexibility allows parents to split the relief between them or have one claim the full amount, tailoring it to their needs.
Who Can Claim Child Tax Relief?
A wide range of caregivers can benefit, including biological or adoptive parents, foster parents, guardians, close relatives the child lives with, and EU/EEA residents working in Bulgaria. The relief is designed to support various family structures and expatriates alike.
Key Eligibility Requirements
To qualify, your child must be under 18 by January 1 of the tax year, not placed in a state institution by December 31, and be a resident of Bulgaria or another EU/EEA country. Only one parent can claim the relief per child, and the claiming parent must have no outstanding public debts, such as unpaid taxes, fines, or local fees.
How to Apply?
Parents have two main options to claim the relief. The most popular method is through your employer, where you submit a declaration between November 30 and December 31 using Form 2005 for standard relief or Form 2006 for disabled children. Your employer then adjusts your annual tax liability accordingly. Alternatively, if you miss this deadline or prefer independence, you can file an annual tax return by April 30 of the following year with the National Revenue Agency, which will process any refund.
Monthly Advance Relief
For those preferring regular savings, a monthly advance option lets your employer reduce your taxable income throughout the year—500 BGN for one child, 1,000 BGN for two, 1,500 BGN for three or more, or 1,000 BGN per disabled child. To activate this, simply submit a written request to your employer, and you’ll see the savings in your paycheck each month instead of waiting for a year-end adjustment.
Special Situations
Parents on full-year maternity leave cannot claim the relief, but the other parent can. For divorced or separated parents, either can claim if eligible, though they must agree on who does so. If one parent’s income can’t use the full relief, the unused portion can transfer to the other via their tax return. A critical condition is having no public debts—unpaid taxes or fines will disqualify you, so check your status with the National Revenue Agency beforehand.
Employer Responsibilities
When employees submit valid declarations, employers receive them between November 30 and December 31, apply the relief to the annual tax calculation, adjust payments to the National Revenue Agency, and report using Article 73 forms, ensuring the relief benefits the employee directly.
Common Mistakes
Watch out for missing the December 31 employer deadline (you can still file by April 30), having unpaid debts, double claiming the same child (which requires repayment and penalties), using incorrect forms (2005 for standard, 2006 for disabled), or failing to update declarations after family changes.
Recent Proposals
In October 2025, the Confederation of Independent Trade Unions proposed higher relief (e.g., 1,200 BGN for one child), but these changes aren’t in effect for 2025, so current amounts apply.
Combined Deductions
You can pair child tax relief with other deductions like voluntary pension or health insurance, life insurance, donations, mortgage interest for those under 35, or non-cash payment relief (up to 500 BGN), boosting your overall tax savings.
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Frequently Asked Questions
Can both parents claim child tax relief in Bulgaria simultaneously?
No, only one parent can claim the relief for each specific child. However, if one parent cannot use the full amount due to insufficient income, the other parent can claim the remaining balance through an annual tax return.
What happens if I have unpaid traffic fines?
You cannot claim child tax relief in Bulgaria if you have any outstanding public obligations, including traffic fines. You must pay all debts before your relief claim will be approved.
Can foreign nationals working in Bulgaria claim this relief?
Yes, both Bulgarian citizens and foreign residents (including EU/EEA nationals) working and paying taxes in Bulgaria can claim child tax relief, provided the child meets residency requirements.
Do I lose the relief if I miss the December 31 employer deadline?
No, you can still claim child tax relief in Bulgaria by filing an independent annual tax return by April 30 of the following year. You simply won’t receive it through your employer’s payroll.
Can I claim relief for stepchildren or adopted children?
Yes, foster parents, adoptive parents, guardians, and even close relatives with whom the child lives can claim the relief, provided all other eligibility conditions are met.
Conclusion
Child tax relief in Bulgaria offers valuable financial support to working families, with potential savings of up to 1,800 BGN or more annually. By understanding the eligibility requirements, application procedures, and deadlines, you can ensure your family receives the full benefits available under Bulgarian tax law. Whether you choose monthly advance relief or annual filing, this program demonstrates Bulgaria’s commitment to supporting families and reducing the financial burden of raising children.
Need assistance navigating child tax relief in Bulgaria or optimizing your family’s tax situation? Contact Aidos today for expert guidance on claiming all available deductions and ensuring full compliance with Bulgarian tax regulations. Our experienced team can help you maximize your savings while handling all the paperwork.
Read more about tax relief possibilities in Bulgaria here: Tax Relief in Bulgaria for Individuals and Businesses.
Disclaimer: This article provides general information and should not be considered legal or financial advice. For tailored guidance, please contact Aidos Accountants directly.
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