Whether you’re an individual or a business owner in Bulgaria, there are several tax benefits you can take advantage of. Here’s an overview of the most important reliefs and incentives.
Tax Relief for Individuals and Families
- Children Tax Relief: Parents can claim tax deductions based on the number of children.
- Mortgage Relief: Young families with a mortgage loan can deduct interest payments under certain conditions.
- Donations: Individuals making donations to approved organizations can claim tax relief.
- Voluntary Insurance Contributions: Contributions to voluntary pension or health insurance plans can be partially deducted.
- E-filing Bonus: If you submit your annual tax return online and pay the tax due by March 31, you receive a 5% discount on the tax owed (up to EUR 255.65), provided you have no outstanding public debts at the time.
Business Tax Incentives
- R&D and Innovation Incentives: Expenses for research and development may be deducted or supported under specific programs.
- Regional Investment Relief: Companies investing in underdeveloped areas may benefit from partial or full corporate tax exemptions.
- Donations and Sponsorships: Corporate donations to approved organizations are deductible up to a defined limit.
Taking advantage of tax incentives is a smart move—both for individuals and growing businesses. Consult with your accountant to explore which reliefs apply to your situation and optimize your tax strategy in line with Bulgarian regulations.