Bulgaria

Minimum monthly salary

As of 1 January 2024, the minimum monthly salary is increased to 933 Bulgarian lev (BGN) (from BGN 780 for 2023). 

Tax relief for children 

The increased value (the same as for 2022) for tax reliefs for minor children will apply for 2023. One of the parents will be able to deduct from their annual tax base:

• BGN 6,000 for one child
• BGN 12,000 for two children
• BGN 18,000 for three or more children, and
• BGN 12,000 for children with disabilities.

The relief for 2023 may be applied through the employer on a monthly basis or through the quarterly/annual tax return(s) of the beneficiary parent.

Trading in financial assets 

Transactions with virtual currencies are expressly added to the list of taxable transactions with financial assets. Until now, virtual currencies were not expressly included in the list of taxable financial assets; nevertheless, the tax authorities had the view that these should have been taxed (being financial assets). The tax base of all transactions with financial assets is decreased by a fixed amount of 10% (to give some allowance to the investors to cover costs related to the investment operations).

Changes in the income certificate under Article 45 of the Personal Income Tax Act (PITA) 

Upon request by the employees, the employer shall issue a standard template income certificate for the employment income paid during the respective year, including for certain types of non-taxable income, such as:

• food vouchers
• business trip per diem allowance exceeding BGN 1,000
• other non-taxable compensations expressly listed (mostly applicable to state employees, such as policemen, judges, soldiers and officers in the Bulgarian army, etc.), and
• certain social expenses provided to the employees for cases such as childbirth or adoption, marriage or death of a member of the family, and others expressly listed in the law.

Changes in the report submitted by the payer of non-employment income under Article 73 of the PITA 

The amounts reported in the declaration under Article 73(1) of the PITA (for year 2024 and onwards) shall also include:

• business trip per diems provided to individuals under non-employment relationship exceeding BGN 1,000 per person
• the income from consumer dividends distributed by agricultural cooperations, and
• the income from rent of agricultural land exceeding BGN 3,000 per individual (this item should be reported in the declaration for 2023 as well).

Opportunity for declaring non-taxable income and income taxed with final tax

Bulgarian residents are now able to voluntarily report information for an extended scope of non-taxable income, as well as income taxed with final tax, in the annual personal tax return under Article 50 of the PITA.

Change in the scope of income that employers should report in the income statements

At the request of the employee, the employer should issue an income statement for non-taxable income from labour relations under Article 24 of the PITA. The income statement should include the total amounts from food vouchers, paid non-taxable benefits, one-time benefits at the expense of social costs, non-taxable monetary and material prizes, etc.

Employers should also report such types of non-taxable income in the declaration under Article 73, Paragraph 6 of the PITA.

The changes apply to income paid in 2022 as well.

Fast track for granting a Blue Card for high-tech companies relocating employees to Bulgaria

The Blue Card will be a key tool for attracting highly qualified personnel, featuring faster procedures, more flexible and inclusive admission criteria, and broader rights, including facilitated short- and long-term mobility.

The new 'fast track' will affect applications for groups of a minimum of ten employees and is intended to benefit companies aiming to relocate whole offices and their activities and employees from non-European Union (EU) countries to Bulgaria.

In order for Blue Card applications to be considered as priority ones, they need to meet the following conditions:

• Application for a group of at least ten employees.
• The company produces products/provides services with high added value to the Bulgarian economy.