Income Declarations in Leva, Payments in Euros: Bulgaria’s 2026 Tax Season Begins

Bulgaria has officially launched the 2026 tax campaign for income earned in 2025, and early results show strong public engagement. In the first few days, between January 10 and 12, over 40,000 citizens submitted their tax returns. The major change this year is the adoption of the euro: while taxpayers report income and claim deductions in leva, the actual payments are calculated and made in euros.

The National Revenue Agency’s (NRA) e-services portal remains the preferred method for filing, with more than half of users opting for the digital route. This includes submitting Appendix No. 10 to the annual return for claiming tax reliefs.

For most individuals, the campaign is already open, but traders, sole proprietors, and farmers using the simplified taxation regime have a submission window from March 1 to June 30. Refunds for tax reliefs are typically issued within a month, though in many cases they arrive within just a week. Tax reliefs are only recognized if the taxpayer has no outstanding obligations to the state. Experts recommend checking accounts through the Personal Identification Number (PIK) to avoid rejections due to unpaid taxes or fines.

Despite the transition to euros, the scope of tax reliefs remains unchanged, now recalculated for the new currency. Families can reduce taxes by up to 306.78 euros (600 BGN) for one child, 613.55 euros (1,200 BGN) for two, and 920.33 euros (1,800 BGN) for three or more. Children with disabilities allow a deduction of up to 613.55 euros (1,200 BGN). Young families with at least one spouse under 35 can deduct mortgage interest on the first 51,129.19 euros (100,000 BGN) of the loan principal. Home renovation labor costs are deductible up to 1,022.58 euros (2,000 BGN). Individuals with reduced work capacity of 50% or more can lower their annual taxable income by 4,049.43 euros (7,920 BGN).

Long-term financial planning continues to be encouraged. Personal contributions to voluntary pension, health insurance, and life insurance policies reduce the tax base by up to 10% per category. Donations to hospitals, social institutions, the Bulgarian Red Cross, and cultural organizations allow reductions of up to 65% of the tax base. Additionally, citizens who primarily operate cashless, using at least 80% of their income through card or bank transfers, qualify for a specific tax bonus.