- The dividend tax in Bulgaria in 2026 is 5%. It did not go up to 10%.
- A 10% rate was proposed in the first draft of the 2026 budget, in late 2025. It was withdrawn in December 2025 and never became law.
- Corporate income tax is a flat 10%, and personal income tax is a flat 10%. Neither changed in 2026.
- 10% on profit plus 5% on the dividend comes to around 14.5% on profit you draw out personally — but only if you genuinely live in Bulgaria and are tax resident there.
Did Bulgaria double its dividend tax in 2026?
No. The rate in force for the whole of 2026 is 5%.
What happened is simple, but it was reported badly. In November 2025 the Ministry of Finance published a draft 2026 budget that, among other things, raised the dividend tax from 5% to 10%. Employers' organisations pushed back hard, there were large protests over the budget, and in December 2025 the government withdrew the dividend increase from a revised version of the budget. It never made it into law.
The problem is that a lot of articles were written in the weeks when the draft was on the table — with headlines like "Bulgaria's 2026 budget doubles dividend tax" — and nobody went back to correct them. Search engines and AI assistants still pick them up. If you've read that the rate is now 10%, that's almost certainly where it came from.
Bulgaria raised its dividend tax to 10% in 2026.
It was proposed and then dropped. The rate in 2026 is 5%. Anyone quoting 10% is reading a draft that never became law.
Why this matters more than it looks
A wrong number on a blog is annoying. A wrong number in a decision is expensive. Believe the dividend rate has doubled and you may rule Bulgaria out for the wrong reason; read three pages and you may come away with three different rates and no idea which one to trust.
That's the pattern we see across the whole subject: rules that change, are explained poorly, and are repeated by people who never lived them. We moved here ourselves, as foreigners, and it took us a year to untangle what actually applied. So we'll stick to what's in force, and say clearly where things can still move.
What are the tax rates in Bulgaria in 2026?
Three numbers matter for a business owner, and all three are flat:
| Tax | Rate in 2026 | What it applies to |
|---|---|---|
| Corporate income tax | 10% | The profit of a Bulgarian company |
| Dividend tax | 5% | Dividends paid out by the company — for a Bulgarian resident individual, withheld by the company as a final tax |
| Personal income tax | 10% | Most personal income of a tax resident, such as a salary |
One detail on personal income tax: if you're self-employed without a Bulgarian company, the way your taxable income is calculated is different, so the 10% headline doesn't tell you the whole story. That's a question for an accountant on your real figures, and we won't quote you a number in an article.
How does 10% + 5% become 14.5%?
The two taxes apply one after the other, not on the same amount:
- The company pays 10% on its profit. Take a profit of 100: the company pays 10 in corporate tax and has 90 left.
- The company pays the 90 out as a dividend. 5% of 90 is 4.5, withheld when the dividend is paid.
- In total, 14.5 out of the original 100 goes in tax. That's where the "around 14.5%" comes from — and why it's not 15%.
The figures are only there to show the mechanics. How it applies to you depends on your structure and your situation, and that's confirmed by a licensed accountant.
Who the 14.5% is really for
This is the part most articles skip, and it's the one that matters most. The 10% + 5% regime works when it's real on both sides: you genuinely live in Bulgaria and are tax resident here, and the business is genuinely run from here — real management, real decisions, made in Bulgaria.
If you stay living in the UK, Germany, Italy or anywhere else, your home country taxes you as a resident. A Bulgarian company managed from your home office doesn't change where you live, and it may not even change where the company is considered to be run. Bulgaria taxing your dividend at 5% doesn't stop your own country taxing it too.
I can keep living at home and take dividends from a Bulgarian company at 5%.
If you remain resident at home, your home country taxes you. The low rates are for people who actually move. That's why every route we work with starts from a real relocation — and why we'll tell you on the first call if what you're after is a rate, not a move.
If you're not sure whether you'd qualify to live here in the first place, start with which route to Bulgaria actually fits you. If you're British, can a UK citizen live in Bulgaria explains the visa and residence side, and why leaving the UK properly is its own step.
Could the dividend tax still rise in 2027?
As of October 2026, the tax proposals for 2027 published by the Ministry of Finance focus elsewhere — the most discussed is a one-off tax on excess profits in sectors such as banking, insurance, telecoms and large food retail. They don't include a dividend increase.
That said, a budget isn't law until parliament adopts it, and the 2026 draft showed how quickly a number can appear and disappear. Our rule is the same one we apply to ourselves: rates get checked again before every decision, by an accountant, not by a blog post — including this one.
When we moved, we did everything ourselves, and it took us a full year. We queued at the Ministry of Foreign Affairs at least ten times, heard the same rule explained differently depending on who we asked, and found that some of the people who offered to "help" weren't who they said they were.
That's why, on tax, we don't rely on what's circulating online. Rates and rules are confirmed by licensed Bulgarian accountants, who take professional responsibility for them.
Questions we get asked every week
What is the dividend tax in Bulgaria in 2026?
5%. A proposal to raise it to 10% was withdrawn in December 2025 and never became law. For a resident individual, it's withheld by the company when the dividend is paid.
Did Bulgaria double its dividend tax to 10%?
No. The increase was in the first draft of the 2026 budget and was then dropped. Articles written while the draft was on the table, and never updated, still describe it as if it had passed.
What are the corporate and personal income tax rates?
Both are flat at 10%: corporate income tax on company profit, personal income tax on most personal income. Self-employed income is calculated differently, so check it with an accountant.
Where does the 14.5% figure come from?
The company pays 10% on its profit; 5% is then withheld on the dividend paid out of what's left. Together that's around 14.5% of the original profit.
Can I get the 14.5% while still living in the UK or elsewhere?
No. It works when you genuinely live in Bulgaria and are tax resident here, and the business is genuinely run from here. If you stay resident at home, your home country taxes you.
Will the dividend tax rise to 10% in 2027?
The 2027 proposals published so far don't include it. Budgets can change until they're adopted, so rates should always be checked again before you act.
Want to know if the move makes sense for you?
Book a free strategy call. We'll look at your passport, your business and your plans, and tell you plainly which route works for you — or if none does. No pressure, no sales script.
Book your free strategy call → Takes 2 minutes to request. In English or Italian.The Bulgaria Move coordinates your relocation end to end. Tax and legal advice on your specific situation is given by licensed Bulgarian lawyers and accountants, who take professional responsibility for it. Figures shown on this site are illustrative and depend on your circumstances — nothing here is tax or legal advice.