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Bulgaria vs Germany
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡§πŸ‡¬ Bulgaria
vs
πŸ‡©πŸ‡ͺ Germany
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
10%
10% flat; EU lowest; reform pressure growing with deficits
No change
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
9–20%
Standard 20%; 9% for hospitality
No change
7–19%
Standard 19% unchanged
No change
Corporate Tax Rate
Corporate Tax Rate
10%
10% maintained; Pillar Two compliance active
No change
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
Capital Gains Tax
Capital Gains Tax
10%
10% flat
No change
25%
Investment income reform proposals under review
No change
Social Security & Payroll
Social Security / Payroll
~32.7%
Pension system under significant pressure
No change
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
State, Regional & Local Taxes

πŸ‡§πŸ‡¬ Bulgaria β€” Municipal Taxes

Bulgaria's 265 municipalities set local tax rates within nationally defined bands. Property tax (danuk varhu nedvizhimi imoti) is levied at 0.01%–0.45% of the property's tax value (set by municipalities). Vehicle tax and patent tax for micro-enterprises are also locally determined. Sofia Municipality applies higher property tax coefficients than rural areas. Bulgaria has the EU's lowest flat income and corporate tax rates at 10%, making it a competitive jurisdiction for businesses.

πŸ‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Bulgaria vs Germany: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡ͺ Germany has a higher top income tax rate (10% vs 14–45%). πŸ‡§πŸ‡¬ Bulgaria is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Bulgaria has a higher consumption tax (9–20% vs 7–19%).

🏒 Corporate Tax: πŸ‡§πŸ‡¬ Bulgaria offers a lower corporate rate (10% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡§πŸ‡¬ Bulgaria taxes investment gains at a lower rate (10% vs 25%), benefiting investors.

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