Tax Relief for Children in Bulgaria 2026 — Complete Guide with Examples

What You Will Learn from This Article

• The exact amounts of the child tax reliefs in Bulgaria for 2026 in BGN and EUR.
• Who is eligible to claim the reliefs and under what conditions.
• The new advance monthly mechanism introduced for 2026 (claiming through the employer).
• Two methods for claiming: through the employer or via the annual tax return.
• Four practical examples with detailed calculations.
• Special rules for children with disabilities under Art. 22d of the Income Tax for Natural Persons Act (ITNPA).
• Answers to 8 frequently asked questions.

Child Tax Relief Amounts for 2026

The child tax relief is governed by Art. 22c of the Income Tax for Natural Persons Act (ITNPA, Bulgarian abbreviation: ЗДДФЛ). It takes the form of a reduction of the annual taxable base, not a direct payment. The effective tax saving equals 10 % of the reduction amount, since Bulgaria's flat personal income tax rate is 10 %.

Number of Children	Taxable Base Reduction (BGN)	Reduction (EUR)	Max. Tax Saving (BGN)	Max. Tax Saving (EUR)
1 child	BGN 6,000	EUR 3,068	BGN 600	EUR 307
2 children	BGN 12,000	EUR 6,136	BGN 1,200	EUR 614
3 or more children	BGN 18,000	EUR 9,203	BGN 1,800	EUR 920
Child with disabilities (Art. 22d)	BGN 12,000	EUR 6,136	BGN 1,200	EUR 614

Important: The actual amount depends on the taxes you have actually paid. If your annual tax liability is lower than the maximum saving, you will only receive back what you actually paid.

Who Can Claim the Child Tax Relief

Under Art. 22c(1) of the ITNPA, the child tax relief is available to Bulgarian tax residents and to foreign nationals who are tax residents of an EU/EEA Member State. All of the following conditions must be met simultaneously.

Conditions relating to the parent

1. The parent (adoptive parent, guardian, or foster parent) must be a tax resident of Bulgaria under Art. 4 of the ITNPA, or a tax resident of another EU/EEA Member State.
2. The parent must have earned taxable income during the tax year on which personal income tax has been withheld or is due.
3. The parent must have no outstanding public debts subject to enforcement as of the date the declaration or application is filed.

Conditions relating to the child

1. The child must be under 18. For students, the age limit is extended to 20 (secondary education) or 25 (higher education in a full-time programme).
2. The child must not be placed in a residential social or health-social care facility fully funded by the state.
3. The child must not be married.

One-parent rule: The relief is claimed by one parent only. Both parents cannot claim the full amount for the same child. However, if the annual taxable base of one parent is not sufficient to absorb the full relief, the unused portion may be transferred to the other parent. This transfer is done by both parents filing annual tax returns.

Self-employed and freelancers: The relief is not limited to employees. Self-insured persons (freelancers), individuals on civil contracts, and sole traders are all eligible. In these cases, the relief is claimed through the annual tax return under Art. 50 of the ITNPA.

New for 2026 — Advance Monthly Relief Through the Employer

One of the significant changes for the 2026 tax year is the introduction of an advance mechanism for monthly use of the child tax relief through the employer. Until 2025 inclusive, the relief was claimed in two ways: via a declaration to the employer at year-end (by 30 November) or via the annual tax return (by 30 April of the following year). In both cases, the financial benefit came with a delay of several months.

How the new advance mechanism works

1. The employee submits a declaration to the employer stating the wish to use the relief on a monthly basis. The declaration includes information on the number of children, confirmation of no outstanding public debts, and confirmation that the other parent will not claim the relief.
2. The employer divides the annual relief amount by 12 and reduces the monthly taxable base when calculating advance tax under Art. 42 of the ITNPA.
3. At year-end, during the annual reconciliation under Art. 49 of the ITNPA, the employer performs a final settlement. If the employee has used more relief than entitled to (for example, because of a change in circumstances), the difference is withheld.

Monthly impact example: For one child, the annual reduction is BGN 6,000. Divided by 12, this is BGN 500 per month in reduced taxable base. At a 10 % tax rate, the employee receives BGN 50 (EUR 25.56) more in net salary every month.

Advantages of advance claiming

• Real financial benefit every month, rather than once a year.
• No large lump sum accumulating for refund.
• No need to file an annual tax return solely for the relief (if the person has only employment income).

Note: Advance monthly claiming is available only for employment income. Freelancers, individuals on civil contracts, and sole traders continue to claim the relief through the annual tax return.

How to Claim the Child Tax Relief

There are two main methods. The choice depends on the type of your income and your personal preference.

Method 1: Through the Employer (Deadline: 30 November)

This method applies to individuals earning employment income.

Step 1. Download or obtain from your employer the declaration form under Art. 22c(8) of the ITNPA (a standardised form approved by the Minister of Finance).

Step 2. Complete the declaration, stating:

• Your full name and personal identification number (EGN or PNF for foreigners).
• Number of children for whom you are claiming the relief.
• Names and identification numbers of the children.
• A declaration that the other parent will not claim the relief for the same child.
• A declaration that you have no outstanding public debts subject to enforcement.

Step 3. Submit the declaration to your employer by 30 November of the current tax year. If using the new advance mechanism, submit the declaration at the beginning of the year or when the circumstances arise (birth of a child).

Step 4. The employer performs the annual reconciliation under Art. 49 of the ITNPA by 31 January of the following year. The overpaid tax is refunded with the first salary after the reconciliation.

Required documents: Declaration under Art. 22c(8) of the ITNPA. Copies of birth certificates are not formally required, but the employer may request them for verification.

Method 2: Annual Tax Return Under Art. 50 of the ITNPA (Deadline: 30 April)

This method is mandatory for self-insured persons, individuals on civil contracts, freelancers, and sole traders. It is also available to employees who did not claim the relief through the employer.

Step 1. File an annual tax return under Art. 50 of the ITNPA electronically (using a Personal Identification Code / PIC or a Qualified Electronic Signature / QES) or on paper at a local NRA office.

Step 2. In Appendix 10 of the return, enter the data for the children and the relief amount.

Step 3. If the relief results in overpaid tax, provide a bank account for the refund.

Step 4. The National Revenue Agency (NRA) refunds the overpaid tax within 30 days of filing (electronic returns filed by 31 March qualify for an expedited refund).

Deadline: The annual tax return is due by 30 April of the year following the tax year. For 2026 income, the deadline is 30 April 2027.

Practical Examples with Calculations

Example 1: Family with Two Children, One Parent Claims the Relief

Given:

• Maria works under an employment contract with a gross monthly salary of BGN 3,000 (EUR 1,534).
• Annual gross salary: BGN 36,000 (EUR 18,405).
• Annual taxable base (after social security contributions of approximately 13.78 %): BGN 31,040 (EUR 15,869).
• Annual tax without the relief: BGN 3,104 (EUR 1,587).
• Two children, aged 5 and 8.

Calculation:

• Taxable base reduction for 2 children: BGN 12,000 (EUR 6,136).
• New taxable base: BGN 31,040 − BGN 12,000 = BGN 19,040 (EUR 9,733).
• New annual tax: BGN 1,904 (EUR 973).
• Tax saving: BGN 3,104 − BGN 1,904 = BGN 1,200 (EUR 614).

Maria receives the full relief because her annual tax (BGN 3,104) exceeds the maximum saving (BGN 1,200).

Example 2: Parent with Low Income — Partial Use

Given:

• Georgi earns the minimum wage of BGN 1,077 (EUR 551) per month.
• Annual gross salary: BGN 12,924 (EUR 6,608).
• Annual taxable base (after contributions): BGN 11,143 (EUR 5,698).
• Annual tax without the relief: BGN 1,114 (EUR 570).
• One child, aged 3.

Calculation:

• Taxable base reduction for 1 child: BGN 6,000 (EUR 3,068).
• New taxable base: BGN 11,143 − BGN 6,000 = BGN 5,143 (EUR 2,630).
• New annual tax: BGN 514 (EUR 263).
• Tax saving: BGN 1,114 − BGN 514 = BGN 600 (EUR 307).

Georgi receives the full amount. His taxable base is sufficient.

Example 3: Transferring the Unused Portion to the Other Parent

Given:

• Iveta works part-time with a monthly salary of BGN 700 (EUR 358).
• Annual gross salary: BGN 8,400 (EUR 4,295).
• Annual taxable base: BGN 7,243 (EUR 3,703).
• Annual tax without the relief: BGN 724 (EUR 370).
• Three children, aged 2, 6, and 10.
• Her husband Petar has a taxable base of BGN 40,000 (EUR 20,452).

Calculation for Iveta:

• Reduction for 3+ children: BGN 18,000 (EUR 9,203).
• Iveta's taxable base (BGN 7,243) is lower than the relief (BGN 18,000).
• Iveta can reduce her taxable base to BGN 0 and receive BGN 724 (EUR 370) back.
• Unused portion: BGN 18,000 − BGN 7,243 = BGN 10,757 (EUR 5,500).

Transfer to Petar:

• Petar files an annual tax return and claims the remaining BGN 10,757.
• Tax saving for Petar: BGN 10,757 x 10 % = BGN 1,076 (EUR 550).
• Total family saving: BGN 724 + BGN 1,076 = BGN 1,800 (EUR 920).

The family captures the full relief by splitting it between both parents.

Example 4: Divorced Parents

Given:

• Elena and Dimitar are divorced. Their child (aged 12) lives with Elena, who has been granted parental rights by the court.
• Elena's annual taxable base: BGN 25,000 (EUR 12,783).
• Dimitar's annual taxable base: BGN 50,000 (EUR 25,565).

Rules for divorced parents: Under Art. 22c of the ITNPA, the relief is claimed by the parent who has been granted custody (parental rights). In this case, that is Elena.

Calculation for Elena:

• Reduction for 1 child: BGN 6,000 (EUR 3,068).
• Tax saving: BGN 600 (EUR 307).

Dimitar cannot claim the relief unless Elena expressly declares that she is not using it and transfers it to him. This is rare in practice but legally permissible by mutual agreement.

If both parents share custody (under a divorce by mutual consent with a shared parenting arrangement), the relief is claimed by one parent by their agreement. In the absence of agreement, the relief goes to the parent at whose address the child is registered.

Children with Disabilities — Relief Under Art. 22d of the ITNPA

Art. 22d of the ITNPA provides an additional tax relief for children with 50 % or higher degree of disability. This relief is separate from and cumulative with the relief under Art. 22c.

Amount: The annual taxable base is reduced by BGN 12,000 (EUR 6,136) for each child with a disability. The maximum tax saving is BGN 1,200 (EUR 614) per child.

Eligibility conditions

1. The child must have a valid decision from the Territorial Expert Medical Commission (TEMC) or the National Expert Medical Commission (NEMC) certifying 50 % or higher degree of disability.
2. The TEMC/NEMC decision must be valid as of 31 December of the tax year.
3. All other conditions are identical to those under Art. 22c (child under 18, not in residential care, not married, no outstanding public debts).

Cumulation of reliefs

A parent of one child with a disability can claim:

• Relief under Art. 22c: BGN 6,000 (EUR 3,068) for 1 child.
• Relief under Art. 22d: BGN 12,000 (EUR 6,136) for a child with a disability.
• Total reduction: BGN 18,000 (EUR 9,203).
• Maximum tax saving: BGN 1,800 (EUR 920).

Example: Stefan is the father of 7-year-old Kaloyan, who has a 75 % degree of disability certified by TEMC. Stefan has an annual taxable base of BGN 30,000 (EUR 15,338).

• Relief under Art. 22c (1 child): BGN 6,000.
• Relief under Art. 22d (child with disability): BGN 12,000.
• Total reduction: BGN 18,000.
• Taxable base after reliefs: BGN 30,000 − BGN 18,000 = BGN 12,000.
• Tax: BGN 1,200 instead of BGN 3,000.
• Tax saving: BGN 1,800 (EUR 920).

Transfer: The rules for transferring the unused portion to the other parent apply to the relief under Art. 22d as well, in the same manner as under Art. 22c.

Documents: When claiming through the employer, a copy of the TEMC/NEMC decision is attached. When filing an annual tax return, the data from the decision is entered in Appendix 10.

Frequently Asked Questions

Conclusion

The child tax reliefs for 2026 remain one of the few mechanisms for genuinely reducing the tax burden on families in Bulgaria. With the new advance mechanism, the benefit is felt every month rather than as an annual lump sum.

Proper use of the relief requires attention to deadlines, eligibility conditions, and the rules for transfer between parents. A mistake in the declaration or a missed deadline can result in losing the relief for the entire tax year.

This article is provided for informational purposes only and does not constitute legal or tax advice. Tax legislation is subject to change and each individual case may have specific circumstances requiring professional assessment. For questions relating to your particular situation, we recommend consulting a qualified tax adviser or lawyer. Innovires Legal accepts no liability for actions taken solely on the basis of the information in this article.