Nearly 6,000 people filed tax returns during the first 6 days of the 2025 Tax Campaign, which traditionally starts on January 10. More than half of taxpayers have chosen the Electronic Services Portal to declare their income and apply for various tax breaks. Citizens who wish to reduce their total annual tax base for 2024 fill out Appendix No. 10 of the form under Art. 50 of the Personal Income Tax Act. Persons engaged in business as traders, sole proprietors and farmers who have chosen this taxation regime submit their declarations from March 1 to June 30.
This year too, persons who received taxable income in 2024 will have the opportunity to reduce their tax base with the tax reliefs provided for in the law. If, after using them, amounts for refund are formed, they are paid within 1 month after submitting the declaration, but in most cases this happens within a week. One of the most important conditions for using tax reliefs is that persons do not have public obligations subject to enforcement. Before applying for a tax break, it is recommended that users check their tax insurance account online for liabilities using their personal identification code (PIK) via the electronic service “Inquiry on liabilities with the possibility of making payments“, in order to avoid inconveniences.
The revenue agency expects increased interest in tax breaks for children and for children with disabilities. Depending on the parents' taxable income for the previous year, they will receive up to 600 BGN for one child, up to 1,200 BGN for two, and up to 1,800 BGN for three or more children. For raising a disabled child, the amount to be received is up to 1,200 leva.
Citizens can also benefit from the tax relief for repairs and/or improvements to their own home for labor payments made in 2024 in a total amount of up to 2,000 leva. In order to receive up to 200 leva in tax relief, owners must have documents certifying the labor payment.
Young families can reduce their annual tax base with the interest paid on the first 100,000 leva of the principal on a mortgage loan for the purchase of a home. To benefit from this tax relief, they must be married, at least one of them must not have turned 35 on the date of signing the mortgage agreement, and the home must be used solely by the family.
Another relief that taxpayers can benefit from is for reduced working capacity. It is for persons with 50 and over 50 percent disability and allows them to reduce their tax base by 7,920 leva.
With the personal contributions made during the year for additional voluntary insurance in a total amount of up to 10 percent, the amount of the annual tax bases can be reduced. This amount can be reduced in total up to 10 percent for personal contributions for voluntary health insurance and premiums/contributions under “Life“ insurance contracts.
Taxpayers who purchase insurance service upon retirement during the year can also reduce the tax base by the amount of the contributions made.
Persons who in 2024 made various donations, such as to the National Health Insurance Fund - for activities related to the treatment of children, financed with transfers from the budget of the Ministry of Health and/or the Center for Assisted Reproduction, donations for culture or in favor of hospitals, social homes, the Bulgarian Red Cross, etc., have the opportunity to reduce their tax base by a total of up to 65% after attaching to the annual tax return copies of documents certifying the status of the person receiving the donation, and that it is received.
The terms and conditions for using each of the tax breaks are described in detail on the the NRA website and the Facebook page of the revenue agency. Clarifications on these issues can be obtained from the NRA Information Center by phone: 0700 18 700 and 02 9859 6801, as well as by email [email protected].