Tax reliefs in Bulgaria

The tax system of each state is oriented by the needs of the state and its main activities and policies. The tax levy covers almost all of the incomes of both individuals and legal entities, as well as certain types of financial transactions. The deadline for sending your personal tax report for 2014 had just passed in Bulgaria.  Hire are some of the possibilities for tax reliefs in the state, according to both social and policy goals of the state.


People with reduced performance

The target group for this relief are people, which reduced work performance has been reduced with or above 50%. They can reduced their tax base with 7920 leva (around 4000 eu). To prove their condition, they must show the legal documents, approving their physical condition.


Tax relief on personal contributions for voluntary insurance and insurance.


The logic of this relief is based on the problems with the health and pension system. As Bulgaria is in the middle of major insurance reform. It should motivate the citizens to invest more into their personal voluntary insurance accounts as well as in the state insurance policy. It reduced 10% of the annual tax base, which are settled as voluntary additional insurance and up to 10% of the amount of annual taxable year for imported personal contributions for health insurance and premiums / contributions “Life.”


Tax relief for private contributions to retirement pension

The other branch of this policy and its reflection to the tax policy is the private pension account. In this case the amount of the annual tax bases is increasing  proportionally to sum, which the person played for his remaining years until retirement.


Tax relief for charity

The amount of the relief is based on the recipient of the charity.


– 5% relief for individuals, who gave money for charity to hospitals, to specific institutions, which provide social services, including child care;

– 15% for charity in the field of culture

– 50% for charity made in favor of Center “Fund for Treatment of Children” and / or the Centre “Fund for Assisted Reproduction”;


Tax relief for young families


The amount of the annual tax base is decreasing according to the mortgage payments through the year. The person, who has made the deal should be:

– married

– his husband/wife should be under 35 by the time of the mortgage has been signed

– the household, for which the mortgage is being paid is the only one for this family for the year;

– documents signed by the husband/wife that he/she hasn’t applied for the same relief


Relief can be used by local individuals as well as foreign individuals, resident for tax purposes in a Member – State of the European Union or in another country – party to the Agreement on the European Economic Area during the year for interest payments on first 100 000 lev principal of a mortgage loan.


Tax relief is available only to file an annual tax return, which applies to a document issued by the bank customer certifying the amount of the year made interest payments on the first 100,000 lev principal of the mortgage to buy a home.

And what are the reliefs which the tax payer can receive by your country?



The information has been provided by Bulgarian National Revenue Agency.