Taxes and Social Contributions for Companies in Plovdiv
Bulgaria's Tax Environment
Plovdiv is Bulgaria's second economic hub and a natural choice for founders who want lower operating costs than Sofia without losing access to IT talent, manufacturing and transport. Thrace Economic Zone attracts production and logistics projects, while the centre around Knyaz Alexander I St. is dense with co-working spaces and young companies.
Registering an EOOD or OOD in Plovdiv follows the same national rules: Commerce Act documents, escrow account, notarised specimen and A4 at the Commercial Register. Locally, notary and bank queues are usually shorter than in the capital — branches on Knyaz Alexander I St., Maritsa Blvd. and in Trakia can often open an escrow account the same day if booked ahead.
For the registered office, many founders choose a city-centre office or an industrial-zone address depending on the activity. IT and services stay in town; manufacturing and warehousing lean toward Thrace EZ. After the UIC come NAP notification for Plovdiv Region, an operating account and a VAT decision based on turnover. Firmify prepares the document pack; you handle notary, bank and filing.
Local tax notes:
- Do not confuse a Plovdiv seat with an economic-zone address that has no use agreement
- For seasonal and tourism activities, plan the VAT threshold before peak season
- Check name availability before locking an office lease — a name refusal delays the whole timeline
Tax obligations for companies in Plovdiv are administered by the NRA in Plovdiv Region.
Business Environment in Plovdiv
Plovdiv (approximately 350,000 residents) is the second-largest city in Bulgaria, with a rapidly growing IT and industrial sector. The city has over 45,000 registered companies, making it an active business centre.
Key Industries:
- IT & Software Development
- Food & Beverage Industry
- Light Industry
- Tourism
Office Rents: Average office rents in Plovdiv are €5–12/sq.m., which is competitive compared to other cities in the region.
Bank Branches: DSK Bank, UniCredit Bulbank and Postbank have branches on Knyaz Alexander I St., Maritsa Blvd. and in the Trakia district.
Notary Offices: Notary offices are concentrated around Central Square, Rayko Daskalov St. and Shesti Septemvri Blvd..
Corporate Tax
Bulgaria's corporate income tax rate is 10% — one of the lowest in the European Union.
| Tax | Rate | When? |
|---|---|---|
| Corporate income tax | 10% | Annually, by 30 June |
| Dividend tax | 5% | Upon dividend distribution |
| VAT | 20% | Monthly (if VAT-registered) |
| Withholding tax | 10% | On payments to non-residents |
Tax Obligations
Key tax deadlines for companies in Plovdiv:
- Annual tax return — by 30 June of the following year
- Advance payments — if net revenue exceeds ~€153,000
- VAT return — by the 14th of the following month (if VAT-registered)
- Social security declarations — by the 25th of the following month
- Annual financial statements — filed with the CR by 30 June
Tax Optimisation Tips
Legal ways to optimise the tax burden for companies in Plovdiv:
- Deductible expenses — rent, utilities, company vehicles, business travel
- Depreciation — of fixed assets
- Voluntary pension contributions — up to 10% of the tax base
- Choosing the right insurable income — when self-insured
Frequently asked questions
Taxes & Social Security in other cities
Other topics for Plovdiv
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👤 Social Security Contributions
Social security contributions in Bulgaria are split between the employer and the employee:
For companies in Plovdiv contributions are paid electronically through the NRA portal.