📝 Description
In Bulgaria, the National Revenue Agency (NRA - NAP) provides a clear framework for cryptocurrency taxation. Cryptocurrencies are considered and treated as financial assets.
Bulgaria attracts many investors thanks to its famous "Flat Tax," which is among the lowest in Europe. This guide explains Bulgarian legislation for individuals and how to use Waltio to generate a fully compliant report.
Bulgaria Tax Essentials
Category | Tax Rule |
Global Tax Rate | 10% (Flat Tax) |
Crypto-to-Crypto Exchanges | Taxable (Considered a disposal) |
Passive Income (Staking, Airdrops) | Taxable upon resale (Acquisition value of 0) |
Loss Offsetting | Yes, but only within the current year (No carry-forward) |
Filing Deadline | April 30th of the following year |
💰 Calculation and Tax Rate: The 10% Flat Tax
The Bulgarian tax system is one of the simplest and most advantageous for private investors. Net profits (Selling Price - Purchase Price) realized from the sale of cryptocurrencies are treated as income from the sale of financial assets.
The Rate: Tax is set at a unique rate of 10% on net capital gains.
The Specific Case of Mining: Warning, if you engage in mining (Proof of Work), the NRA considers the use of specialized hardware as a professional or commercial activity. Mining income is therefore taxed at a higher rate of 15% (with the possibility of deducting certain operating expenses).
📉 Strict Treatment of Losses:
If you end the year with a net loss on your transactions, the Bulgarian tax authorities allow the deduction of these losses against gains in the same category only for the same calendar year. It is strictly forbidden to carry forward your losses to future tax returns. Every January 1st, your loss counter resets to zero.
🔄 Crypto-to-Crypto Operations (Trading)
The NRA's doctrine is very clear: exchanging one cryptocurrency for another (e.g., selling Bitcoin to buy Solana or USDT) constitutes a taxable event. This is equivalent to selling a financial asset and triggers the immediate calculation of capital gains or losses.
⚙️ How are they managed on Waltio?
Excellent news: Waltio's behavior is perfectly aligned with Bulgarian law.
The software automatically considers each Crypto-to-Crypto exchange operation as taxable and calculates the capital gain realized at the exact second of the transaction.
Your Action: You have no manual actions to perform on these operations. The calculation engine will process your intermediate trades exactly as required by the tax administration.
🎁 Passive Income (Staking, Airdrops)
For individual investors, Bulgaria has a very specific (and accounting-friendly) approach regarding staking and airdrops. The NRA considers that these tokens, earned or received for free, have an acquisition cost of zero. Tax is not claimed immediately upon receipt of the asset but is deferred until the day of its disposal.
⚙️ How are they managed on Waltio?
Waltio's methodology corresponds exactly to the NRA's interpretation:
Passive income is marked as non-taxable upon receipt.
The software assigns them an acquisition value of 0 € (or 0 BGN).
Practical Consequence: You do nothing upon receipt. Taxation is suspended. It is only when you decide to sell these tokens (for fiat currency or another crypto) that the operation becomes taxable. Since the recorded purchase price is 0, the entire sale amount will be considered net profit and taxed at the 10% flat rate. You have no manual steps to remain compliant.
✅ What Triggers Tax (Crypto ➔ Fiat)
Any "disposition" into the traditional economy triggers the 10% flat tax:
Selling for Currencies: Converting your cryptos into Bulgarian Lev (BGN), Euros (EUR), etc.
Purchasing Goods or Services: Paying for a purchase with your cryptocurrencies is equivalent to a disposal.
As soon as an outgoing transaction is detected, Waltio automatically calculates the generated profit or loss to allow you to perform the annual offsetting.
📝 Declaration: The Calendar
Tax Period: The calendar year (January 1st to December 31st).
Annual Return: Crypto capital gains must be reported on the Annual Income Tax Return for individuals, specifically in Appendix 5 (concerning income from the disposal of financial assets).
Deadline: The declaration must be submitted to the NRA, and the tax must be paid no later than April 30th of the year following the realization of the gains.
Disclaimer: This guide is provided for informational and educational purposes only. Legislation surrounding digital assets can evolve quickly, and the status of a professional investor (taxed at 15%) is based on specific activity criteria. Waltio does not provide tax or legal advice. We strongly recommend consulting a certified accountant or tax lawyer in Bulgaria to validate your declaration.