New rules for declaring dividends for 2026: what businesses in Bulgaria need to know

We explain who the new requirements apply to, what information you now need to collect and which deadlines you must not miss.

📌 What is the essence of the changes?

As of 1 January 2026, enterprises and self-insured persons paying dividends are required to submit to the National Revenue Agency (NAP) itemised information on dividends accrued and/or paid to individuals who are tax residents of other EU member states.

Important: The amendments were published in the State Gazette (Държавен вестник) No. 85 of 15 September 2026, but apply retroactively — from 1 January 2026. This means that all payments made before the law was published also fall under the new requirements.

⚖️ What changes and what stays the same?

Tax payment procedure (unchanged)

The previous procedure for withholding, remitting and declaring the 5% final tax on dividends remains in place:
• The tax is still reported and paid through the quarterly return under Art. 55 of the Personal Income Tax Act (ЗДДФЛ) for the relevant quarter.

Itemised reporting (new requirement)

A separate personalised report on dividend recipients is submitted:
• The report is submitted once a year — together with the return under Art. 55 of the ЗДДФЛ for the fourth quarter.
• First reporting period: 2026.
• Filing deadline: 1 February 2027 (since the set date of 31 January falls on a Sunday).

⚠️ Residence matters more than citizenship

A typical situation: a Bulgarian OOD (LLC) or EOOD (single-member LLC) distributes dividends to a shareholder who is an individual. In determining the obligation to submit the information, the decisive factor is tax residence, not the recipient’s passport.

The Bulgarian tax authority (National Revenue Agency, NAP) already knows about all tax residents of Bulgaria (both citizens and foreigners with a long-term residence permit/permanent residence permit).

However, Bulgaria’s NAP does not know whether a Bulgarian company has paid dividends to a person who lives and pays taxes in another EU country (for example, in Germany, Spain or France). Under EU law (Directive DAC8), Bulgaria’s NAP is required to collect this data and pass it on to the tax service of the EU country where the recipient lives.

That is why the rule works as follows:
• If the recipient is a tax resident of ANOTHER EU country: The Bulgarian company IS REQUIRED to submit the information to Bulgaria’s NAP (so that NAP can then forward it to the tax authority of Germany/France, etc.).
• If the recipient is a tax resident of BULGARIA: This information is not submitted under Art. 73a, since the person already pays taxes in Bulgaria and is declared under domestic Bulgarian rules.

Are there any exceptions?
The information is not declared again under Art. 73a ЗДДФЛ if it is already being transmitted to NAP by financial institutions as part of the automatic exchange of financial information (Section IIIa, Chapter 16 of the Tax and Social Insurance Procedure Code, ДОПК).

📝 What data must be collected?

For each dividend recipient who is a resident of another EU state, the following set of information must be prepared in advance:
🌍 Country of tax residence
🆔 Foreign tax identification number (TIN)
📅 Date of birth
📍 Address of residence/registration

💡 Tip: Request confirmation of tax residence and up-to-date personal data directly at the moment the decision on distributing dividends is taken. This is also necessary in order to apply the Double Taxation Avoidance Agreements (СИДДО).

🚫 Fines and penalties for violations

Failure to submit, late submission, or the provision of inaccurate/incomplete data under Art. 82 ЗДДФЛ carries administrative liability:

⚠️ Please note: The fine is applied separately for each individual whose data was not submitted or contained errors.

🦉 Recommendations for businesses and accountants

1. Audit your payments: Check all instances of dividends accrued and paid to individuals starting from 1 January 2026.
   2. Clarify the status of recipients: Contact the company’s partners/founders and request documents confirming their tax status and personal data.
   3. Update your processes: Add the collection of the required information to your standard checklist when drawing up a profit distribution resolution.
   4. Schedule the filing: Put the deadline for filing the personalised report for 2026 in your calendar — 1 February 2027.