Taxes and Social Contributions for Companies in Sofia
Bulgaria's Tax Environment
Bulgaria offers one of the lowest tax rates in the EU, making it attractive for business. For companies in Sofia tax obligations are administered by the NRA office in Sofia Region.
Sofia is the capital and largest business hub in Bulgaria, home to over 60% of all registered companies in the country, with many companies benefiting from the competitive tax environment.
Business Environment in Sofia
Sofia (over 1.3 million residents) is the capital and largest business hub in Bulgaria, home to over 60% of all registered companies in the country. The city has over 180,000 registered companies, making it an active business centre.
Key Industries:
- IT & Outsourcing
- Finance & Insurance
- Wholesale Trade
- Consulting Services
Office Rents: Average office rents in Sofia are €8–20/sq.m., which is competitive compared to other cities in the region.
Bank Branches: UniCredit Bulbank, DSK Bank, Postbank and UBB have central branches on Vitosha Blvd., Tsarigradsko Shose Blvd. and near the National Palace of Culture.
Notary Offices: The highest concentration of notary offices is around the Palace of Justice on Vitosha Blvd., along Dondukov Blvd. and in Sofia Business Park.
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 Sofia:
- 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 Sofia:
- 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
👤 Social Security Contributions
Social security contributions in Bulgaria are split between the employer and the employee:
For companies in Sofia contributions are paid electronically through the NRA portal.