YARD Law Co. · 2026 · YARD Law Legal Team
Bulgaria has one of the most straightforward tax regimes for cryptocurrency income in the EU - a flat 10% rate for both individuals and companies. But the rules around reporting, asset classification, and audit risk are frequently misunderstood. This guide explains what you need to know and when you should seek legal advice from a Bulgarian crypto lawyer.
Cryptocurrencies are not treated as legal tender under Bulgarian law. For tax purposes, they are classified as financial assets, and gains from their sale or exchange may constitute taxable income. The tax treatment depends on whether you are an individual or a legal entity, and on the nature and frequency of your transactions.
Individual investors must declare income from the sale or exchange of crypto assets in their annual tax return. The taxable income is calculated as the difference between the sale price and the provable acquisition cost. A common issue is the absence of adequate documentation - especially when using multiple exchanges or wallets. Bulgaria applies a flat 10% personal income tax rate on such gains.
When crypto trading or dealing is conducted through a Bulgarian company, profit is included in the company's accounting and taxable result. The 10% corporate tax rate applies. Key questions are: is the activity incidental or core, how are assets recognized in accounting, and how is the financial result determined? Improper accounting treatment significantly increases the risk of corrections and penalties.
Crypto income must be declared within statutory deadlines. Failure to declare - or incorrect declarations - can result in additional tax assessments, interest, and administrative penalties. Many clients seek legal assistance only after realizing they have not correctly reported income in prior years. Voluntary correction is still possible at that stage, but more complex.
Yes. In recent years, Bulgaria's National Revenue Agency (NRA) has significantly intensified oversight of digital asset income. Data is obtained from both domestic and foreign sources, including foreign crypto exchanges through international tax information exchange mechanisms. Do not assume undisclosed crypto income goes undetected.
Legal counsel is recommended if you have: active trading with significant realized gains, undeclared income from previous years, an ongoing NRA audit or inquiry, or complex structures involving multiple jurisdictions. Early advice is significantly less costly than responding to a tax audit.
This article was prepared by the legal team at YARD Law Co., a full-service law firm based in Sofia, Bulgaria, specialising in crypto law, corporate law, real estate, and cross-border legal services.
Have questions? Get in touch.
Contact Us