Filing your personal annual tax return in Bulgaria is a crucial task for both residents and non-residents. Understanding the process, deadlines, and required information can ensure you meet your tax obligations accurately and efficiently. If you’re looking for a broader understanding of the Bulgarian tax system, check out our guide on Taxation in Bulgaria.
Who Needs to File?
In Bulgaria, tax residents must file an annual tax return on their worldwide income. Non-residents are only required to file if they have earned income from Bulgarian sources. Most employees with only employment income from a Bulgarian employer are not required to file if their employer conducts an annual reconciliation. However, employees with additional income sources or income from foreign employers must file. All self-employed individuals, including freelancers and sole proprietors, are required to submit an annual tax return.
Types of Income to Declare
When filing your tax return, you must declare various types of income, including:
- Employment income (wages, salaries, bonuses).
- Self-employment income.
- Rental income.
- Capital gains (with some exemptions). If you’ve earned income from cryptocurrency transactions, these may also be subject to taxation. Learn more about cryptocurrency taxation in Bulgaria here.
- Investment income (interest, dividends, stock sales).
- Foreign bank interest income, which is subject to taxation for Bulgarian tax residents.
- Loans provided or received—if they exceed specific thresholds, they must be declared.
- Ownership of foreign stocks/shares as of December 31st of the tax year.
- Other income earned in Bulgaria or abroad (for residents).
How to File a Tax Return?
Bulgaria offers convenient online filing through the National Revenue Agency (NRA) website, which requires an electronic signature. Paper filing is also possible but online filing is encouraged for efficiency and convenience. The deadline for filing your tax return is April 30th of the following year. However, if you file online by March 31st and pay your taxes, you are entitled to a 5% discount, with a maximum discount of BGN 500.
Tax Return for Foreigners
Foreigners in Bulgaria should understand the tax residency rules to determine their tax obligations. One of the key factors in determining tax residency is physical presence. If you spend more than 183 days in Bulgaria within a calendar year, you are generally considered a tax resident. Other factors, such as having a permanent address or your ‘centre of vital interests’ being in Bulgaria, can also contribute to determining your tax residency status. Read our detailed guide on tax residency in Bulgaria for expats and investors here.
Penalties for Non-Compliance
These penalties can include late payment interest of 10% + the official rate by the national bank, a late filing penalty starting from 500 BGN if the missing declaration is not intentionally filed late and the act is not related to tax evasion.
Need Help?
Navigating tax returns can be complex. If you need assistance with your personal annual tax return in Bulgaria, our team of experienced accountants at Aidos Accountants can help ensure accurate and timely filing. Contact us today for a free consultation!
Looking for information on corporate tax returns? Check out our guide on annual tax returns for companies in Bulgaria.
Want to stay up-to-date on the latest developments in Bulgarian business and tax law? Our resource page provides a wealth of information for entrepreneurs, expats, and established businesses. Find practical guides, expert insights, and essential resources all in one place: Essential Resources for Success in Bulgaria.
Frequently Asked Questions (FAQ)
1. Who needs to file a personal annual tax return in Bulgaria?
Tax residents of Bulgaria need to file a tax return on their worldwide income. Non-residents only need to file if they have earned income from Bulgarian sources.
2. What types of income need to be declared in the tax return?
You need to declare various types of income, including employment income, self-employment income, rental income, capital gains, investment income, and any other income earned in Bulgaria or abroad (for residents).
3. What is the deadline for filing the tax return?
The deadline for filing is April 30th of the following year.
4. Is there a discount for filing early?
Yes, if you file online by March 31st and pay your taxes, you are entitled to a 5% discount, with a maximum discount of BGN 500.
5. How can foreigners file their tax returns in Bulgaria?
Foreigners can file their tax returns either online or on paper. They should understand the tax residency rules and double taxation treaties to determine their tax obligations.
6. What are the penalties for not filing my tax return on time?
You may face penalties such as late payment interest, a late filing penalty, and even more severe penalties in cases of deliberate tax evasion.
7. Where can I find more information about personal income tax in Bulgaria?
You can find detailed information on the official website of the National Revenue Agency (NRA) or consult with a tax advisor for personalised guidance.
8. What is the 183-day rule, and how does it affect my tax residency in Bulgaria?
The 183-day rule is a key factor in determining tax residency in Bulgaria. If you spend more than 183 days within a calendar year in Bulgaria, you are generally considered a tax resident, regardless of your nationality. This means you’ll be taxed on your worldwide income, not just income sourced in Bulgaria. It’s important to track your time spent in Bulgaria if you’re unsure about your residency status.
9. Do I need to report income from cryptocurrency transactions?
Yes, cryptocurrency transactions may be taxable in Bulgaria. If you’ve traded or earned crypto, you must report any capital gains or applicable income. Read our full guide on cryptocurrency taxation here.