Dividend tax calculator 2026
Work out how much tax is due on a dividend from a single-member Ltd or another company. The calculator shows the tax (5%), the net amount to receive, and the overall tax burden for a single-member Ltd.
How is dividend tax calculated?
Dividend tax is calculated with a simple formula: 5% of the gross amount set in the distribution resolution. The tax is final, which means there are no further taxes or declarations for the recipient (an individual).
The paying company withholds the tax and pays the difference (the net dividend) to the recipient. The deadline for payment is the end of the month following the month in which the distribution resolution was taken.
For a single-member Ltd, the overall tax burden is 14.5%: first the profit is taxed at 10% corporate tax, then the distributed dividend is taxed at 5%. The formula is: 1 - (1 - 10%) x (1 - 5%) = 14.5%.
If you need the whole step-by-step procedure, including the shareholders' resolution, form 4001 and the exact deadline with the NRA, see dividend calculator 2026: tax, deadlines and declaring.
Comparison: tax burden by business form
| Form | Taxes | Effective rate |
|---|---|---|
| Single-member Ltd (dividend) | 10% corporate + 5% dividend | 14.5% |
| Sole trader | 15% patent tax or 10% + contributions | ~25-30% |
| Freelance profession | 10% + 25% standard expenses + contributions | ~20-35% |
* The effective rate for a sole trader or a freelance profession depends on income and social security contributions.
Personal Income Taxes Act
Art. 38(1)-(2)
Official Bulgarian text
„С окончателен данък се облагат облагаемите доходи от дивиденти в полза на местно или чуждестранно физическо лице.“
Personal Income Taxes Act
Art. 46(3)
Official Bulgarian text
„Данъчната ставка на данъка по чл. 38 за дивиденти е 5 на сто.“
Personal Income Taxes Act
Art. 65(2)
Official Bulgarian text
„Данъкът се удържа и внася от платеца на дохода до края на месеца, следващ месеца, през който е взето решението за разпределяне на дивидент.“
Frequently asked questions
❓How much is dividend tax in Bulgaria for 2026?
❓Who withholds and pays the dividend tax?
❓What is the overall tax burden for a single-member Ltd?
Source: Corporate Income Tax Act, Art. 20; Personal Income Taxes Act, Art. 46(3)
❓Do I need to declare a dividend in my annual return?
❓Can a dividend over BGN 1,000 be paid in cash?
Source: Restriction of Cash Payments Act, Art. 3
Important
Pravko provides legal information, but it does not replace advice from a lawyer or an accountant. Tax rates are current as of 2026. For your specific case, consult a tax specialist.