Personal income tax

Personal Income Tax Act (PITA) applies only to income accruing to resident and non-resident natural persons. The Act regulates the taxation of income accruing to natural persons, including income from activities in a sole-trader capacity.

Resident natural persons are all persons, regardless of their nationality, who have a permanent address in Bulgaria or who are present within the territory of Bulgaria for a period exceeding 183 days in any twelve-month period.

Resident natural persons are liable to tax in respect of any income acquired from sources inside and outside Bulgaria. Non-resident natural persons are liable to tax only in respect of any income acquired from sources inside Bulgaria.

Income from employment relationships and legal relationships equivalent to employment relationships are taxed with 10% personal income tax.