Is Bitcoin Legal in Bulgaria?

What Is Bitcoin’s Legal Status in Bulgaria?

Bulgaria’s National Revenue Agency classifies Bitcoin and other cryptocurrencies as financial assets. This classification has been in place since 2014, when the NRA issued its first official guidance on cryptocurrency taxation.

Bitcoin is not legal tender in Bulgaria. That means no merchant or institution is obligated to accept it as payment for goods or services. It is an asset you can hold and trade, in the same category as stocks or bonds from a tax perspective, but not a currency recognised by the state.

What that classification means in practice:

• Buying Bitcoin is legal for any adult resident of Bulgaria
• Holding Bitcoin is legal and is not a taxable event in itself
• Selling Bitcoin for euros or lev triggers a taxable gain or loss
• Using a regulated platform to buy and sell is fully compliant with Bulgarian law
• Sending or receiving Bitcoin is legal

What Bitcoin is not in Bulgaria:

• It is not legal tender and cannot be demanded as payment
• It is not covered by deposit insurance schemes that protect bank accounts
• It is not treated the same as electronic money or payment instruments

Who Regulates Bitcoin and Crypto in Bulgaria?

Several authorities have defined roles in Bulgaria’s crypto regulatory framework.

The National Revenue Agency (NRA) handles taxation of cryptocurrency income and gains. It is the authority you interact with when filing your annual tax return. The NRA treats Bitcoin gains as income from financial assets and has published guidance on how to declare and calculate them.

The Financial Supervision Commission (FSC) is the licensing and supervisory authority for crypto asset service providers in Bulgaria under the BG MiCA Act, which came into force in July 2025. The FSC oversees companies offering crypto exchange, wallet, and related services. Blockforia is registered with the NRA under Operating License BB-49 / 06.01.2023 and operates under EU anti-money laundering and compliance requirements.

The Financial Intelligence Directorate (FID), operating under the State Agency for National Security, is Bulgaria’s primary anti-money laundering enforcement body. It receives and analyses reports of suspicious transactions from regulated crypto service providers.

The Bulgarian National Bank (BNB) has a narrower role in the crypto space, focused specifically on issuers of electronic money tokens. It does not oversee standard Bitcoin exchange platforms.

Do You Pay Tax on Bitcoin in Bulgaria?

Yes, but only when you sell.

Simply holding Bitcoin does not trigger any tax obligation. You can buy Bitcoin today, hold it for ten years, and pay zero tax during that period. Tax becomes due only when you dispose of it, meaning when you sell it for euros or lev and realise an actual gain.

Bulgaria applies a flat 10% tax rate on capital gains from Bitcoin. This is one of the lowest rates for digital asset gains in the European Union and significantly below the capital gains tax rates in most Western European countries.

The 10% rate applies to the net gain, meaning your profit after subtracting your original purchase price and any allowable costs.

What Counts as a Taxable Event in Bulgaria?

Understanding exactly when tax is triggered prevents surprises at filing time.

Taxable events:

Selling Bitcoin for euros or Bulgarian lev. This is the most common trigger. When you sell Bitcoin through Blockforia and receive funds in your bank account, the gain is taxable.

Exchanging one cryptocurrency for another. The NRA treats swapping crypto as a disposal. If you sell Bitcoin to buy another digital asset, that swap is treated as a taxable sale of the Bitcoin at the market price at the time of the exchange. Many investors are unaware of this and fail to declare swap transactions, which can result in assessments and interest during an NRA audit.

Not taxable events:

Buying Bitcoin. Purchasing Bitcoin with euros or lev is not a taxable event. No tax is owed at the point of purchase.

Holding Bitcoin. Owning Bitcoin, regardless of how much its value has increased on paper, does not trigger any tax until you sell or exchange it.

Transferring Bitcoin between your own wallets. Moving Bitcoin from your Blockforia wallet to a personal hardware wallet you own is not a taxable event. It is a transfer, not a disposal.

How to Calculate Your Bitcoin Tax in Bulgaria

The calculation is straightforward for most individual investors.

Taxable gain = Sale proceeds minus acquisition cost minus allowable deductions

Allowable deductions include:

• The original price you paid for the Bitcoin
• Platform conversion fees paid on the purchase
• Transaction fees paid on the sale

Example:

You buy Bitcoin worth 2,000 EUR and pay a 50 EUR conversion fee. Your total acquisition cost is 2,050 EUR.

Later, you sell that Bitcoin for 3,500 EUR and pay a 70 EUR fee on the sale.

Your net proceeds are 3,430 EUR.

Your taxable gain is 3,430 EUR minus 2,050 EUR, which equals 1,380 EUR.

Your tax at 10% is 138 EUR.

Important rules:

There is no minimum threshold. Even small gains are taxable. There is no tax-free allowance on Bitcoin profits in Bulgarian law.

Losses can offset gains within the same tax year. If you have both profitable and unprofitable Bitcoin sales in the same year, the gains and losses are netted. You pay tax only on the net result.

Losses cannot be carried forward. If you finish a year with a net loss, that loss cannot be used to reduce tax in a future year. Each January, the calculation resets.

Blockforia provides a full transaction history in your account, which shows every purchase, sale, fee, and timestamp. This is the record you need for accurate tax reporting.

When and How to File Your Bitcoin Tax in Bulgaria

Bitcoin gains are reported in your annual personal income tax return filed with the NRA.

Filing deadline: April 30 of the following year.

If you made taxable Bitcoin gains in 2025, you report them by April 30, 2026. If you made gains in 2026, you report them by April 30, 2027.

Bitcoin gains are declared in Annex 5 of the Bulgarian annual tax declaration, under income from the sale of financial assets.

To file accurately you will need:

• The date and amount of each purchase
• The price paid for each purchase
• The fees paid on each purchase
• The date and amount of each sale
• The price received on each sale
• The fees paid on each sale

All of this information is available in your Blockforia account transaction history. Download or save it before you file.

If your Bitcoin activity is limited to a few straightforward buy and sell transactions, most people handle the declaration themselves. If you have significant volumes, multiple transactions across platforms, or have engaged in crypto-to-crypto exchanges, consulting a Bulgarian tax accountant familiar with digital assets is advisable.

Is Blockforia a Legal and Regulated Platform in Bulgaria?

Yes. Blockforia is owned and operated by BFinance EOOD, a company registered in Bulgaria with company number 206805699. The registered address is 11 Petko R. Slaveykov sq, fl. 6, Sofia City, 1000, Bulgaria.

Blockforia holds Operating License BB-49, issued on 06.01.2023, by Bulgaria’s National Revenue Agency. This registration authorises the platform to provide Bitcoin exchange and wallet services in Bulgaria.

Blockforia operates under EU anti-money laundering and counter-terrorism financing rules. This means the platform carries out identity verification on all users, screens customers against international sanctions lists, and reports suspicious activity to the relevant Bulgarian authorities. These are legal obligations, not optional practices.

When you use Blockforia, you are using a platform with a verifiable legal registration you can confirm independently. The company number, license number, and registered address are publicly available and published on the Blockforia website.

Common Legal Questions About Bitcoin in Bulgaria

Can my Bulgarian bank block or close my account because I use Bitcoin?

Bulgarian banks have, in some cases, asked customers questions about the source of large incoming transfers from crypto platforms. This is part of standard AML due diligence, not a prohibition. Bitcoin itself is legal. Banks have the right to ask questions about unusual transactions. The practical answer is: be prepared to explain large incoming transfers from crypto sales, and keep your transaction records from Blockforia. For regular amounts that are proportionate to your income, most people experience no issues.

Do I need to declare Bitcoin I am just holding and have not sold?

No. Unrealised gains, meaning an increase in the value of Bitcoin you still own, are not declarable or taxable. You only file and pay when you sell. Holding is invisible to the NRA until disposal.

What happens if I do not declare Bitcoin gains?

The NRA has been increasing attention on cryptocurrency income. Failure to declare taxable gains can result in back taxes, interest on unpaid amounts, and potential penalties. The NRA can request transaction records from regulated platforms. Declaring correctly each year is straightforward if you keep records and significantly less stressful than dealing with a later assessment.

Is Bitcoin treated as gambling in Bulgaria?

No. Bitcoin is classified as a financial asset, not a gambling product. The tax treatment, filing requirements, and regulatory framework are completely separate from gambling regulation. Blockforia’s terms explicitly prohibit using the platform for transfers to unlicensed gambling services, which is a separate regulatory requirement.

Frequently Asked Questions

Is it illegal to buy Bitcoin in Bulgaria?

No. Buying Bitcoin is entirely legal for any adult resident of Bulgaria. There are no restrictions on purchasing Bitcoin through a regulated platform.

What tax rate applies to Bitcoin gains in Bulgaria?

Bulgaria applies a flat 10% tax rate on net capital gains from Bitcoin. This applies to gains realised in the same tax year and is calculated on profits after deducting the acquisition cost and allowable fees.

Do I pay tax if I just hold Bitcoin and do not sell?

No. Holding Bitcoin is not a taxable event in Bulgaria. Tax is only triggered when you sell or exchange your Bitcoin and realise an actual gain.

Is swapping Bitcoin for another cryptocurrency taxable in Bulgaria?

Yes. The NRA treats a crypto-to-crypto exchange as a disposal of the original asset. The swap triggers a taxable gain or loss based on the market value of the Bitcoin at the time of the exchange.

When is the deadline to declare Bitcoin gains in Bulgaria?

The annual personal income tax return deadline in Bulgaria is April 30. Bitcoin gains realised in a given calendar year must be declared by April 30 of the following year.

How do I prove my Bitcoin transaction history for tax purposes?

Blockforia provides a full transaction history through your account, including purchase dates, amounts, prices, and fees. This record is sufficient for accurate tax reporting.

Does Blockforia report my transactions to the NRA?

Blockforia operates under Bulgarian AML and compliance obligations, which include record-keeping and reporting requirements. Your responsibility is to declare your own gains correctly. Keeping your Blockforia transaction history is the simplest way to ensure you have what you need at filing time.

All facts verified against NRA guidance, Bulgarian tax law, and Blockforia Terms and Conditions. Regulatory claims limited to: NRA Registration, Operating License BB-49 / 06.01.2023. This page does not constitute legal or tax advice. Consult a qualified Bulgarian tax professional for advice specific to your situation.