Crypto & NFT Tax in Bulgaria — Complete Guide (2026)

What you will learn

• How individual crypto income is taxed — effective rate of 9%.
• The tax treatment of different types of crypto income — sales, mining, staking, airdrops, NFTs, DeFi, crypto-to-crypto swaps.
• When crypto trading is considered a commercial activity (sole trader).
• How crypto income is taxed for legal entities (10% under ZKPO).
• How to file your return — annual tax return under Art. 50, Annex 5.
• NFT-specific considerations.
• What MiCA means for providers and investors.

How individuals are taxed on crypto income

Income from selling or swapping cryptocurrencies is taxed under Art. 33(3) ZDDFL — as income from the disposal of financial assets.

Calculation formula

1. For each transaction, determine the gain or loss = sale price minus acquisition cost (Art. 33(4) ZDDFL).
2. Taxable income = total realised gains minus total realised losses for the year.
3. Deduct 10% flat-rate deemed expenses (Art. 31 ZDDFL).
4. Apply the 10% tax rate to the remainder.
5. Effective rate = 10% × 90% = 9%.

Example

Suppose you made the following transactions in 2026:

• Net gain: EUR 3,000 - EUR 500 + EUR 800 = EUR 3,300
• Flat-rate deemed expenses (10%): EUR 330
• Taxable income: EUR 2,970
• Tax (10%): EUR 297 (effectively 9% of EUR 3,300)

Important: Losses from one transaction offset gains from another within the same year. Losses from previous years cannot be carried forward.

Types of crypto income — tax treatment

Crypto-to-crypto swaps

Swapping one cryptocurrency for another (e.g. Bitcoin for Ethereum) is a taxable event — a gain or loss is realised. Many investors are unaware of this and fail to declare swap transactions. During an audit, the NRA may assess tax with interest.

How the gain is determined: The gain (or loss) is the difference between the market value of the received cryptocurrency and the acquisition cost of the one given up. The market value is determined at the time of the swap based on the exchange where the transaction took place.

Acquisition cost of the newly received cryptocurrency: This equals its market value at the time of the swap. This becomes your new “entry price” for future calculations upon subsequent sale.

Staking and airdrops

When tokens are received through staking or airdrops, the acquisition cost is zero (EUR 0). Taxation occurs upon subsequent sale — the entire sale price constitutes the gain.

Example: You receive 100 tokens through staking, each valued at EUR 5. No tax is due upon receipt. If you later sell those 100 tokens for EUR 800, your gain is EUR 800 (since the acquisition cost is EUR 0).

Mining

Mining is usually treated as a commercial activity, particularly where specialised equipment is used. Taxation follows the rules for Annex 2 of the annual return (as a sole trader) — with actual expenses (electricity, equipment depreciation) and an obligation to pay social security contributions.

When is the activity commercial?

Under Art. 1(3) of the Commercial Act and NRA practice, crypto trading is considered a commercial activity where the following factors are present:

1. Systematic and regular trading — not just 3–5 trades per year, but continuous activity.
2. Specialised equipment — mining rigs, trading bots, professional infrastructure.
3. Intent to make it a permanent income source.
4. Significant volume of turnover — thousands of euros per month.
5. Active market participation — margin trading, derivatives, arbitrage.
6. Time devoted to the activity — if it is the primary occupation.

Consequences of commercial classification

If the NRA classifies your activity as commercial:

• Taxation under Art. 26(7) ZDDFL — as a sole trader, with actual expenses (Annex 2).
• Social security contributions are due as a self-insured person (minimum insurable income from 01.01.2026 — EUR 550.66).
• Potential reclassification of income for previous years — with interest and penalties.

How to protect yourself

• Maintain detailed records of all transactions (date, type, quantity, price, exchange).
• If the activity is systematic — register as a sole trader or establish a single-member limited liability company (EOOD).
• Consult a tax lawyer on the correct classification.

Corporate taxation — 10% under ZKPO

Legal entities (EOOD, OOD, AD) tax crypto trading profits at 10% corporate tax under ZKPO.

How cryptocurrencies are treated in accounting

Cryptocurrencies are treated as financial assets. Upon sale, the difference between the sale price and the carrying amount is a financial income (or expense).

Revaluations and impairments: The NRA takes the position that unrealised gains and losses from crypto revaluation are not recognised for tax purposes (analogous to Art. 34(2) ZKPO). Taxation occurs only upon actual sale or swap.

VAT on crypto transactions

The sale of cryptocurrencies is an exempt supply under Art. 46 ZDDS (financial instrument transactions). This was confirmed by the CJEU in Case C-264/14 Hedqvist — the exchange of cryptocurrency for fiat currency is an exempt financial service.

Important: Although VAT is not charged, turnover from crypto transactions is included when calculating the mandatory VAT registration threshold (EUR 51,130).

Filing — annual return under Art. 50, Annex 5

Individuals

Crypto income is declared in the annual tax return under Art. 50 ZDDFL, in Annex 5, Table 2 (income from the transfer of rights or property).

Filing deadline: by 30 April of the year following the year in which the income was realised. For 2026 income — by 30.04.2027.

What to report:

• Total realised gains for the year.
• Total realised losses for the year.
• Net gain.
• 10% flat-rate deemed expenses.
• Taxable income.
• Tax due (10%).

From 2026: The return is completed in EUR. For 2025 income (declared in 2026), figures are in BGN, but tax is paid in EUR.

Advance tax

For individual crypto income, no advance tax is due (unlike rental income). Tax is payable in a single payment with the annual return.

Documentation

Retain the following documentation for potential audit purposes:

• Exchange statements (Binance, Coinbase, Kraken, etc.) for all transactions.
• Records of every deposit and withdrawal (blockchain transactions).
• Confirmations of bank transfers (fiat to crypto and vice versa).
• Screenshots of prices at the time of each transaction (for crypto-to-crypto swaps).
• Records of staking rewards and airdrops received.

NFTs — specific considerations

The tax treatment of NFTs (non-fungible tokens) is not expressly regulated in Bulgarian legislation. The classification depends on the nature of the specific NFT:

NFT as a financial asset

If the NFT is acquired and sold for investment purposes (similar to cryptocurrency) — taxation under Art. 33(3) ZDDFL at a 9% effective rate. Declared in Annex 5, Table 2.

NFT as a work of art

If the NFT is a digital artwork and the author sells it — taxation as a copyright royalty under Art. 29 ZDDFL is possible. In this case:

• Flat-rate deemed expenses: 40% (for copyright and licensing royalties).
• Effective tax rate: 10% × 60% = 6%.
• Declared in Annex 3 of the annual return.

NFT as a collectible

For NFT collections (PFP, gaming NFTs), the classification is less clear. We recommend a conservative approach — treatment as a financial asset at the 9% effective rate.

VAT on NFTs

Whether the sale of an NFT is a taxable or exempt supply under the ZDDS is not definitively settled. For NFTs representing digital content, the standard 20% rate may apply. Consult a tax specialist for your specific case.

MiCA and the licensing regime

Regulation (EU) 2023/1114 (MiCA — Markets in Crypto-Assets) has been transposed into Bulgarian law through the Markets in Crypto-Assets Act (State Gazette No. 54/04.07.2025).

What MiCA introduces

• A licensing regime instead of mere registration with the NRA — licences are issued by the Financial Supervision Commission (FSC).
• Three licence classes, depending on the scope of activity:
  • Class 1 — EUR 2,556 (BGN 5,000)
  • Class 2 — EUR 5,113 (BGN 10,000)
  • Class 3 — EUR 15,339 (BGN 30,000)
• Capital requirements, organisational requirements, and risk management standards.
• Consumer protection — rules on marketing, white papers, and disclosure.

Transition period

Entities registered as providers of virtual currency exchange or wallet services before 30.12.2024 may continue operating without a licence until 1 July 2026 — but only in Bulgaria (they may not provide cross-border services within the EU).

Impact on investors

MiCA does not change the tax treatment of crypto income — ZDDFL and ZKPO remain applicable. The regulation targets service providers (exchanges, wallet providers, payment institutions), not individual investors.

For investors, MiCA means:

• Greater protection when using licensed platforms.
• Better transparency — mandatory white papers and risk disclosure.
• Potentially fewer platforms in the market (those that fail to obtain a licence will cease operations).

Frequently asked questions

Conclusion

Cryptocurrency taxation in Bulgaria is comparatively favourable — 9% effective rate for individuals and 10% corporate tax. The key takeaway is that every sale and swap is a taxable event, you must maintain detailed documentation, and you must file your annual return on time.

With the introduction of MiCA, the regulatory environment for crypto activities in Bulgaria is changing significantly. If you trade cryptocurrencies, mine, stake, or sell NFTs, contact Innovires Legal for personalised advice on your tax obligations and regulatory status.

This article is for informational purposes only and does not constitute tax or legal advice. The tax treatment of crypto assets is a rapidly evolving area and may change. For specific cases, we recommend consulting a tax lawyer. The information is current as of March 2026.