Bulgaria: Farmers Have Until January 5 to Choose Their Tax Regime

Farmers in Bulgaria must decide on their income tax regime by January 5, 2026, the National Revenue Agency (NRA) has announced. Normally, the deadline for making this choice is December 31 of the preceding year, but since the last day of 2025 falls on a public holiday, farmers have until January 5 to submit their decision.

The selected tax regime will apply for five consecutive years and does not require annual confirmation through additional declarations. Individuals who choose to be taxed under the sole proprietor regime are not eligible to apply the provision that allows transferring tax on the annual tax base, as outlined in Article 48, paragraph 6 of the Personal Income Tax Act.

Farmers newly registered in 2025 can opt to be taxed on the annual tax base for that same year according to the sole proprietor procedure (Article 28 of the Personal Income Tax Act). This choice must be declared in their 2025 annual tax return under Article 50 of the same law. Those wishing to continue with this taxation method for the next five years must submit a declaration under Article 29a, paragraph 4 of the Personal Income Tax Act by January 5, 2026.

The NRA provides the declaration template for selecting the taxation procedure on its website, www.nra.bg, under the “Forms” section. Farmers can submit their declaration in person at the NRA office corresponding to their permanent address, through an authorized representative, electronically via the NRA’s Electronic Services Portal, or by postal mail.