Country overview

#58
Bulgaria

Country stats

Rating Points
175
This indicator describes the overall rating of a given jurisdiction on several parameters according to cryptocurrency operations - market volume, crypto regulation, business climate, taxation framework.
Crypto Penetration
2.2%
Estimated percentage of crypto users out of the country's total population based on public data.
Legal Entities
84
Number of crypto companies registered in the country based on regulator data if available or other types of public data.
Regulation Points
100
An overall assessment of the granularity of crypto regulation in a given country. A high score is also given to countries where cryptocurrency transactions are highly regulated.
Amount of crypto users
149 600
Total amount of crypto users out of the country's total population based on public data.
Taxation points
35
This figure, according to our analysts' calculations, indicates the overall level of tax burden for cryptocurrency transactions in a given country. The higher the indicator, the lower the burden.
Market volume points
80
A rough estimate of this jurisdiction's retail crypto market relative to the rest of the world. The higher the indicator, the higher the market potential.
Status of crypto
Legally allowed
General status of cryptocurrency regulation in this jurisdiction.
Crypto payments
No info
The legal status of cryptocurrency payments for goods and services in a given country based on information from regulators, public data and feedback from our community.
Security Level
Minor danger
The overall level of security in a given country based on open data.
Crypto Salaries
No info
The legal status of cryptocurrency salaries to employers in a given country based on information from regulators, public data and feedback from our community.
Business Climate
Good
Overall assessment of the friendliness of this country for crypto-business. This indicator takes into account the cost of obtaining a license and the attitude towards crypto entities in the country.
Stablecoin Regulation
Low
This indicator is evaluating the regulation of stablecoins in a given country. Complex regulation means that it is possible to issue steiblcoins and obtain a license for this activity. Basic regulation means that the issuance of stablecoins is possible, but not all legal aspects are defined in the law. Standard regulation means that there is a legal practice of steylcoin circulation in a given country.
Bad Factors
FATF grey list
This section describes the unfavorable economic factors for crypto-business in a given country. These are countries that are under sanctions or on the FATF grey list and other factors.
Types of licenses
Crypto-to-crypto
This license type allows VASP to provide legal exchange from one cryptocurrency to another.
Crypto-to-fiat
This type of license regulates the exchange from cryptocurrency to fiat.
Wallet/Custody
This country has a legal licensing procedure for companies that store cryptocurrency - - crypto wallet providers and custodians.
Good
Medium
Bad
intro

Bulgaria is one of those countries that have recently introduced regulation but have already established themselves as a hub in the EU. For example, this is where the Nexo exchange is licensed.

Security level

Bulgaria has a minor danger security level according to our rating. Jurisdiction has 62.5 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 1.3 per 100,000 inhabitants a year. Story of firearm-related death (3) 1.51 per 100,000 inhabitants a year.

Crypto Payments

Salary under an employment contract can only be paid (4) in fiat money. The following options remain:

crypto payroll from a foreign company;

accepting payments in crypto under a civil law contract.

Crypto Salaries

Crypto payments are valued (5) (converted) into Bulgarian leva at the time of receipt. They form insurance income and tax base from economic activity. 

Legal

The Council of Ministers of Bulgaria adopted a Decree (6) in 2020, which contains information on creating a special register of companies - providers of crypto services to separately designate the obligation of such companies to comply with AML requirements. If you are interested in details of crypto regulation in Bulgaria, you may check the law text in English (7). Based on that law dozens of crypto entities (over 200) got VASP status in official register () managed by National Revenue Agency.

However, from that time regulations have changed. Now Bulgaria has two other crypto regulators: Bulgaria National Bank (BNB) and the Financial Supervision Commission (FSC). In two interviews in 2022, the BNB Deputy Governor in charge of the banking department expressed the general unofficial opinion that cryptocurrencies are unregulated in Bulgaria in every aspect, except for anti-money laundering (AML) purposes, and will remain unregulated until general European legislation is adopted (8). Back in early 2024, Bulgaria tightened the requirements for VASP and only 139 companies remained in the VASP register by March 2024.

Local authorities prepared a new crypto bill () to adopt MiCA - Bill on Crypto-assets Markets (BCAM) in Summer 2024. However, we haven't find information that the bill was approved by local parliament. Probably this bill get approval soon. It gives to operating entities 12 months of transition period to get CASP license. Also BCAM increases government fees () to get crypto license: from 2,500 to 15,000 EUR. Also capital requirements grew up - up to 350k EUR for stablecoin providers.

Taxation
Tax nameIndex
PIT tax Min10
PIT tax Max10
Corporate tax (CIT)10
Min Individual CGT (for crypto)10
Max Individual CGT (for crypto)15
Wealth tax Min0
Wealth tax Max0

In 2014, the Bulgarian National Revenue Agency stated (13) that any profit a person who is a tax resident of Bulgaria might gain from trading with Bitcoin and any kind of cryptocurrency is subject to an income tax of 10%.

PIT

A flat tax rate of 10% applies to all personal income, with some exceptions in obedience to PWC (14).

CIT

Corporate income is generally subject to corporate income tax (CIT) at a flat rate of 10% per PWC (15).

CGT

Capital gains are subject to the average PIT rate according to PWC (16), but there is a special rate for crypto - 15%