Cryptocurrency is legal in Bulgaria and is subject to taxation under the country’s general tax framework. The National Revenue Agency (NRA) primarily issues guidance that governs the tax treatment of crypto assets.
Since 2014, the NRA has classified cryptocurrency gains as income derived from the disposal of financial assets under the Personal Income Tax Act. As a result, most individual investors pay a flat income tax rate on gains realized from selling or exchanging crypto assets.
Bulgaria has become one of the more attractive jurisdictions for cryptocurrency investors within the European Union due to its relatively low flat tax rates. Individuals generally pay a 10% tax on crypto gains, while companies are subject to a 10% corporate income tax on profits.
The country also aligns its regulatory framework with the EU’s crypto regulatory environment through the Cryptocurrency Markets Act (MICAL), adopted in June 2025, which implements aspects of the broader EU regulatory framework such as the Markets in Crypto-Assets Regulation.
While Bulgaria does not have a dedicated crypto tax law, the combination of NRA guidance and existing tax legislation provides a clear framework for how crypto transactions are taxed. Depending on the nature of the activity, cryptocurrency income may be taxed either as capital gains or as ordinary income from commercial activity.
Capital Gains Tax Rules
In Bulgaria, cryptocurrency gains for individuals are generally taxed as income derived from the disposal of financial assets under the Personal Income Tax Act. The tax authority first clarified this position in a 2014 official statement issued by the National Revenue Agency.
Although Bulgaria does not use a separate capital gains tax regime for individuals, gains from crypto transactions are taxed at the standard flat personal income tax rate of 10%.
A taxable event occurs when cryptocurrency is disposed of. Disposal typically includes selling crypto for fiat currency, exchanging one cryptocurrency for another asset, or using crypto to purchase goods or services. Each disposal event must be evaluated separately to determine whether a gain or loss has occurred.
How capital gains are calculated
The taxable gain is calculated as the difference between the selling price and the acquisition cost of the cryptocurrency. The acquisition cost generally includes the purchase price plus any associated transaction fees. If a cryptocurrency is sold for more than its acquisition price, the difference is treated as taxable income and subject to the 10% rate.
If the sale results in a loss, the loss may be offset against gains from other disposals of financial assets in the same tax year, depending on how the taxpayer reports their financial income. Bulgaria does not provide special long-term holding discounts for cryptocurrency assets. All gains are taxed at the same flat rate regardless of holding period.
Record keeping
Taxpayers are expected to maintain detailed records of their cryptocurrency transactions. This includes the date of acquisition, acquisition price, transaction fees, date of disposal, and the value of the asset at the time of the transaction. Records must be sufficient to demonstrate how gains and losses were calculated when filing the annual tax return.
Income Tax Rules
Cryptocurrency may be taxed as ordinary income rather than capital gains when the activity is considered commercial or professional trading. The National Revenue Agency evaluates whether an individual’s activity resembles a business based on factors such as frequency of transactions, intent to generate profit, and the level of organization involved.
In practice, the NRA may classify individuals who carry out frequent transactions as conducting a commercial activity. Guidance often references a threshold of three or more transactions per year as an indicator that the activity could be systematic and profit-motivated.
When crypto trading is treated as a business activity, income may be taxed at a higher rate, typically around 15% for sole traders under the Personal Income Tax Act.
Crypto received as payment for goods or services is also treated as taxable income. In such cases, the value of the cryptocurrency is assessed in Bulgarian lev at the time it is received. This value forms the taxable income amount and becomes the cost basis for future capital gains calculations if the asset is later sold or exchanged.
Mining and Staking Treatment
Mining
Cryptocurrency mining in Bulgaria is generally treated as a commercial activity for tax purposes. Income generated through mining is typically classified as business income and taxed accordingly under the Personal Income Tax Act or the applicable corporate tax rules if the activity is conducted through a company.
For individuals operating as sole traders, mining income may be taxed at approximately 15%. Mining operations conducted through companies are subject to the standard 10% corporate income tax rate.
In addition, certain mining services provided to blockchain networks may be subject to the standard 20% value-added tax depending on how the activity is structured.
Once mined cryptocurrency is received, its fair market value at the time of receipt is treated as taxable income. If the miner later sells or exchanges the coins, a second tax event may occur. Any difference between the value at the time of receipt and the eventual sale price is treated as a capital gain or loss.
Staking
As of 2025, Bulgaria has not issued detailed tax guidance specifically addressing cryptocurrency staking. In practice, staking rewards are generally expected to be treated similarly to other forms of crypto income.
Where staking rewards are received, the fair market value of the tokens at the time they are credited to the taxpayer may be treated as taxable income. If staking is conducted regularly and with the intention of generating profit, the activity may be classified as a business and taxed accordingly.
When the staked tokens are later disposed of, any change in value between the time they were received and the time of disposal may give rise to a capital gain or loss under the Personal Income Tax Act.
NFT Taxation
Non-fungible tokens are not specifically addressed in Bulgarian tax legislation. As of 2025, the tax treatment of NFTs generally follows the same principles applied to other crypto assets under the Personal Income Tax Act.
For individuals who buy and sell NFTs as an investment, profits from disposing of an NFT are likely treated as gains from the disposal of financial assets. The gain is calculated as the difference between the sale price and the acquisition cost and is taxed at the standard 10% personal income tax rate.
If NFTs are created and sold by artists or developers as part of a commercial activity, the proceeds are typically treated as business income rather than capital gains. The value of the NFT at the time of sale must be reported as income. VAT implications may also arise if the activity is considered a taxable supply under Bulgarian VAT law.
Reporting Requirements
Individuals in Bulgaria must report cryptocurrency income and gains through their annual personal income tax return submitted to the National Revenue Agency. Crypto gains derived from the disposal of financial assets are declared in the section relating to income from financial asset transactions under the Personal Income Tax Act.
All values must be converted into Bulgarian lev at the time the transaction occurs. Taxpayers typically use the prevailing market exchange rate or an exchange rate published by a recognized financial source on the date of the transaction. Accurate valuation is essential because the converted amount forms the basis for calculating taxable gains or income.
Taxpayers must retain records supporting their calculations, including transaction histories from exchanges, wallet statements, and documentation of purchase prices and fees. These records may be requested by the NRA during a tax review or audit.
Crypto service providers such as exchanges and wallet operators are required to register with the National Revenue Agency and comply with anti-money laundering requirements. This regulatory oversight increases the ability of the tax authority to monitor crypto activity and verify taxpayer reporting.
Penalties
Failure to report cryptocurrency income or gains in Bulgaria may result in financial penalties imposed by the National Revenue Agency. Penalties can apply where a taxpayer fails to submit a tax return, underreports income, or provides inaccurate information.
In addition to penalties, interest is charged on unpaid taxes from the date the tax was originally due. The total amount owed may therefore increase significantly if the underreporting remains unresolved for an extended period.
Taxpayers who discover errors in previous filings may reduce their exposure to penalties by voluntarily correcting their tax return and paying any outstanding liabilities promptly. Voluntary disclosure is generally viewed more favorably by the tax authority than non-compliance identified through audit.
