Investing in Bulgaria in 2026: Brokers, ETFs & Taxes

Last updated: 2 September 2026

Table of Contents

Bulgaria combines EU market access with a comparatively simple personal tax system. Taxable personal income and taxable investment gains are generally subject to a flat 10% rate, while dividends received by individuals are generally taxed at 5%. More importantly for many long-term investors, Bulgarian law exempts qualifying transactions in specified financial instruments when the statutory market conditions are met.

There was also a major practical change in 2026: Bulgaria adopted the euro on 1 January 2026, at the irrevocable conversion rate of €1 = BGN 1.95583. Brokerage deposits, tax calculations and new financial records should therefore now be considered in euros, although older statements may still show Bulgarian lev.

This guide explains the main rules for ordinary Bulgarian tax residents investing privately. Business activity, professional trading and investments held through a company can be treated differently.

Investing in Bulgaria at a glance

Bulgarian residents can invest through locally licensed intermediaries and cross-border firms serving Bulgaria under EU rules. Available products may include:

Bulgarian and foreign shares;
UCITS ETFs and investment funds;
government and corporate bonds;
real-estate investment companies;
exchange-traded derivatives; and
other regulated investment products offered by the chosen intermediary.

The domestic market is smaller than those of the largest EU economies, but the Bulgarian Stock Exchange gives access to locally listed securities. Investors seeking global diversification generally use an international or Bulgarian intermediary offering access to exchanges elsewhere in Europe and the United States.

Before investing, three questions matter more than the broker’s marketing label:

Which legal entity will hold the account?
On which market will each transaction actually be executed?
Does that instrument-and-venue combination satisfy the Bulgarian tax exemption?

For a broader overview, see the Bulgaria Tax Guide. To estimate a taxable sale, use the Bulgaria Capital Gains Tax Calculator.

Available Brokers for Bulgarian Residents

Bulgarian residents can choose from international investment brokers, domestic investment firms, traditional bank brokers and CFD providers.

BrokerAvailabilityStocksETFsFractional sharesMain point to verify
Interactive Brokers	Generally available	Yes	Yes	Selected securities	Execution venue and Bulgarian tax records
Trading 212	Generally available	Yes	Yes	Yes, where eligible	Contracting entity and execution venue
XTB	Generally available	Yes*	Yes*	Selected instruments	Real instruments versus CFDs
eToro	Generally available	Yes*	Yes*	Selected assets	Underlying ownership versus CFD
Saxo	Generally available	Yes	Yes	Limited / product-dependent	Current Bulgarian onboarding and entity
Swissquote	Generally available	Yes	Yes	Limited / product-dependent	Account entity and protection scheme
Freedom24	Generally available; verify onboarding	Yes	Yes	No broad offering identified	Entity and available exchanges

*Product access depends on the entity and order. Confirm whether the position is an underlying security or a CFD.

Availability, account entities and product ranges can change. The table is not a recommendation. Verify current eligibility and regulatory status before depositing money.

Interactive Brokers

Interactive Brokers accepts Bulgarian residents and provides access to global shares, UCITS ETFs, bonds, options and other securities. Fractional investing is available for eligible instruments. Investors should retain confirmations showing the execution venue because this can determine whether a disposal qualifies for Bulgaria’s tax exemption.

Trading 212

Trading 212 provides shares, ETFs and fractional investing to eligible Bulgarian residents through its European operation. Confirm the legal entity, exchange or execution venue and the information included in annual statements.

XTB

XTB offers a mixture of investment products and CFDs, depending on the entity and country service. Bulgarian investors must verify whether an order represents a real share or ETF or a leveraged derivative, since the tax treatment can differ.

eToro

eToro provides access to shares, ETFs and CFDs. Selected unleveraged long positions may represent the underlying asset, while leveraged or short positions can be CFDs. The order ticket should be checked before execution.

Saxo

Saxo offers international shares, ETFs, bonds and other products. Bulgarian residents should confirm current onboarding, the contracting entity and the available trading venues.

Swissquote

Swissquote provides access to international securities through its European operations. The applicable regulator, investor-compensation scheme and reporting package depend on the account entity.

Freedom24

Freedom24 offers international equities and ETFs to eligible clients. Verify live Bulgarian onboarding, the contracting entity and exchange access. Broad fractional-share investing should not be assumed.

Brokers With Restricted or Unclear Availability

BrokerCurrent presentation for Bulgaria
DEGIRO	Do not present as confirmed without successful Bulgarian onboarding
LYNX	Verify whether Bulgarian residents are currently accepted
Trade Republic	Verify current supported-country list before including as available
Scalable Capital	Passporting does not by itself confirm active Bulgarian onboarding

Domestic Investment Platforms

BrokerTypeTypical market access
Karoll Brokerage	Bulgarian investment intermediary	Bulgarian and international securities
ELANA Trading	Bulgarian investment intermediary	Local and international markets
First Financial Brokerage House	Bulgarian investment intermediary	Brokerage and capital-market services
BenchMark Finance	Bulgarian investment intermediary	Investment and trading services

These firms form part of Bulgaria’s domestic investment-services market. Verify their current licence, services, custody model and exchange access through the Financial Supervision Commission.

Karoll Brokerage

Karoll provides brokerage services for Bulgarian and international markets. Investors should compare custody, foreign-market execution and reporting costs.

ELANA Trading

ELANA Trading is a Bulgarian investment intermediary offering local and international market access. Confirm the precise venues used for foreign transactions.

First Financial Brokerage House

First Financial Brokerage House provides brokerage and other capital-market services. Available products and retail conditions should be checked directly.

BenchMark Finance

BenchMark Finance offers investment and trading services. Investors should distinguish securities investing from leveraged products and verify which service they are opening.

Traditional Bank Brokers

Bulgarian banks and banking groups may offer brokerage, custody, mutual funds, bonds or access to international securities. The exact offering varies considerably by bank. Bank-based services can simplify domestic funding and support, but investors should compare custody charges, transaction minimums and foreign-market execution.

CFD and Forex Brokers

Bulgarian residents can access CFD and forex services from a number of EEA-regulated providers. Unlike Belgium, Bulgaria does not impose a national prohibition on the general distribution of leveraged OTC CFDs to retail consumers. Instead, providers serving Bulgarian retail clients operate under the EU product-intervention framework, which limits leverage, requires margin close-out and negative-balance protection, and mandates standardised risk warnings. Availability must still be checked against the provider’s current country policy and licensed entity. A CFD only tracks the price of an underlying asset: it does not give the client ownership of the referenced share or ETF, and it should not be treated as equivalent to an investment-account position.

The following providers generally market CFD or forex services to eligible Bulgarian residents through regulated entities, subject to current onboarding:

ProviderGeneral availabilityMain point to verify
XTB	Generally available	CFD versus underlying investment product
IG	Generally available	Contracting entity and product range
CMC Markets	Generally available	CFD-focused service
Plus500	Generally available	CFD-focused service
Pepperstone	Generally available	Forex and CFD focus
AvaTrade	Generally available	Forex and CFD focus
Admirals	Generally available	Products depend on entity
FP Markets	Verify onboarding	Entity and cross-border permission
Trading.com	Generally available through its EEA service	CFD account versus investment account
eToro	Generally available	Underlying ownership versus CFD

CFDs are leveraged OTC contracts, not ownership of the underlying share or ETF. EU product-intervention measures impose leverage limits, margin close-out, negative-balance protection and risk warnings for retail clients, but losses can still occur rapidly. Availability depends on the authorised entity and client classification. CFD gains should not be assumed to qualify for Bulgaria’s regulated-market exemption merely because the underlying asset is a listed share.

What to Verify Before Opening an Account

Before funding an account, verify:

whether residents of Bulgaria are currently accepted;
the exact licensed entity named in the agreement;
the home regulator and investor-compensation arrangement;
whether client money is held as a bank deposit or under another safeguarding structure;
the exchanges and execution venues available;
whether the broker supplies complete annual transaction reports; and
whether it withholds any Bulgarian tax or leaves all filing to the investor.

The Bulgarian Financial Supervision Commission explains how to identify a licensed investment intermediary and provides access to its public registers. For an EEA firm operating cross-border, also verify the home-country regulator and passported service.

Domestic versus foreign brokers

A Bulgarian intermediary may offer easier local support and documentation, while a foreign broker may provide broader market access or lower fees. Neither choice automatically produces better tax treatment.

The exemption for certain gains depends primarily on the legal type of instrument and the market or trading venue on which the transaction occurs—not on whether the broker itself is Bulgarian. A transaction routed outside a qualifying venue may have a different result from a visually identical trade in the same company.

Most foreign brokers do not prepare a Bulgarian personal tax return for the customer. Investors should assume they must retain the evidence and classify the income themselves unless the broker states otherwise in writing.

ETF investing from Bulgaria

Bulgarian retail investors generally have access to UCITS ETFs domiciled in EU jurisdictions such as Ireland and Luxembourg. Available categories commonly include global equity, regional equity, bond, money-market, commodity and thematic products.

Which ETFs Are Available?

Bulgarian residents can generally access:

Ireland- and Luxembourg-domiciled UCITS ETFs;
global, regional and sector equity ETFs;
bond and money-market ETFs;
dividend and ESG ETFs;
multi-asset ETFs; and
commodity-linked products, subject to their legal form and broker availability.

Why most US-domiciled ETFs cannot be purchased

The EU PRIIPs Regulation requires a Key Information Document before a packaged retail investment product is made available to a retail investor. Many US-domiciled ETFs do not publish a PRIIPs-compliant KID, so most European brokers block their purchase by Bulgarian retail clients.

This is best described as a retail-distribution restriction, not an absolute ban on ownership. In practice, investors normally use a UCITS ETF tracking the same or a similar index.

Accumulating versus distributing ETFs

An accumulating ETF reinvests income inside the fund. A distributing ETF pays income to the investor. Bulgarian law does not impose a general annual tax merely because an accumulating ETF’s market price rises, but tax can arise when the investment is sold or when income is distributed.

UCITS status alone does not guarantee a capital-gains exemption. The investor must still check:

whether the ETF share or unit is a qualifying financial instrument;
whether the sale was executed on a qualifying regulated market or growth market under Bulgarian law; and
whether the transaction falls within the statutory definition used by Article 13 of the Personal Income Tax Act.

A broker’s app may show an exchange code, smart-routing label or request-for-quote venue. Keep the execution confirmation because the venue, not just the ETF’s domicile or ISIN, can be decisive.

Popular UCITS ETF Examples

ETFISINReference index
iShares Core MSCI World UCITS ETF	IE00B4L5Y983	MSCI World
Vanguard FTSE All-World UCITS ETF	IE00B3RBWM25	FTSE All-World
iShares Core S&P 500 UCITS ETF	IE00B5BMR087	S&P 500
Vanguard FTSE Developed World UCITS ETF	IE00BK5BQV03	FTSE Developed World
Xtrackers MSCI Emerging Markets UCITS ETF	IE00BTJRMP35	MSCI Emerging Markets

These examples are educational, not recommendations. Availability depends on the broker and exchange. The Bulgarian exemption must be tested using the precise instrument and actual execution venue, not merely the ETF name or domicile.

Capital gains tax

General 10% treatment

Where no exemption applies, gains from shares, other financial assets, crypto-assets and foreign-currency trading can fall within the 10% personal income tax framework. The National Revenue Agency describes the treatment of financial assets in its official guidance on income from the sale of property.

For taxable financial assets, the annual taxable result is not necessarily calculated as 10% of every profitable trade in isolation. Bulgarian legislation provides rules for aggregating documented gains and losses and reducing the annual result by a statutory allowance for expenses. Investors should use the current return instructions rather than simply applying 10% to gross sale proceeds.

Exemption for qualifying market transactions

Article 13(1)(3) of the Personal Income Tax Act exempts income from disposals of financial instruments that fall within the definition in §1, item 11 of the Act. The 2026 text of the Act published by the National Revenue Agency should be the starting point for classification.

From 1 January 2026, the definition expressly includes specified transactions in units and shares of collective investment schemes and national investment funds, shares, rights and government securities carried out on a regulated market and/or a growth market, together with the other transactions listed in the provision.

This is broader and more precise than saying that every security traded somewhere in the EU or EEA is tax-free. In particular:

UCITS status by itself is insufficient;
a security being admitted to an exchange does not prove where the investor’s trade was executed;
an OTC, internalised or non-qualifying venue may not meet the rule;
US-listed shares and ETFs should not automatically be treated as exempt; and
CFDs and many other derivatives should not be assumed to qualify.

When the exemption applies, the gain is exempt—but a corresponding loss is not available to reduce taxable gains elsewhere.

Evidence to retain

Keep:

trade confirmations showing the execution venue;
the ISIN and full instrument name;
purchase and sale prices;
commissions and fees;
corporate-action records;
annual broker statements; and
euro conversions for any amount originally recorded in another currency.

Older lev-denominated amounts should be converted using the official rate of €1 = BGN 1.95583 where the euro-conversion legislation requires it. Do not use a rounded commercial exchange rate for the formal conversion.

Use the Bulgaria Capital Gains Tax Calculator for an estimate, but verify the market classification separately—the calculator cannot determine where a broker executed a trade.

Dividends

The National Revenue Agency confirms that dividend income received by individuals is subject to a 5% final tax under Article 46(3) of the Personal Income Tax Act.

For a dividend paid by a Bulgarian company, the Bulgarian payer generally withholds the tax. Foreign dividends normally require more attention from a Bulgarian tax resident:

the source country may withhold tax first;
the income may need to be included in the Bulgarian annual return;
a double-tax treaty or domestic credit mechanism may provide relief; and
the taxpayer should retain proof of the foreign tax paid.

Do not confuse a capital-gains exemption on the sale of an ETF with an exemption for the ETF’s cash distributions. They are different taxable events.

Interest, bonds and cash

Interest treatment depends on its source and legal category. Bulgarian law provides exemptions for certain bank-deposit interest within the EU/EEA and for specified Bulgarian and EU/EEA bonds, but the wording and conditions matter. A broker’s interest-like payment on uninvested cash is not automatically identical to a protected bank deposit or an exempt bond coupon.

Check who legally pays the income and what product generates it. This is especially important for money-market funds, securities-lending income and broker cash-sweep programmes.

Tax residence and foreign investments

Bulgarian tax residents are generally taxed on worldwide income. Residence is not determined solely by citizenship or a Bulgarian address: permanent address, presence for more than 183 days, centre of vital interests and treaty rules can all matter.

Using a foreign broker does not move taxable income outside Bulgaria. A resident may still have to report:

foreign dividends;
taxable gains on foreign shares, ETFs or other assets;
interest and similar income; and
other foreign investment income.

Treaty relief depends on the relevant country and income type. Keep foreign withholding certificates and do not assume the gross or net figure shown by the broker is the correct Bulgarian tax base.

Filing and record keeping

Individuals generally file the annual return under Article 50 of the Personal Income Tax Act by 30 April of the following year. The National Revenue Agency publishes the current forms, electronic filing service and payment instructions.

A practical annual process is:

Download statements from every broker and paying institution.
Separate dividends, interest, exempt disposals and taxable disposals.
Confirm the execution venue for every sale claimed as exempt.
Calculate foreign-tax relief only under the applicable treaty or domestic rule.
Complete the appropriate annexes and retain the evidence supporting the figures.

An exempt gain may still be relevant to disclosure or supporting documentation. “Tax-free” should not be interpreted as “records unnecessary.”

Opening an investment account

1. Compare access and total cost

Review commissions, spreads, custody charges, currency conversion, withdrawal and portfolio-transfer fees. Since Bulgaria now uses the euro, euro funding may remove one conversion step, but securities traded in other currencies still create currency exposure and possible conversion costs.

2. Verify the intermediary

Confirm the exact entity in the FSC or relevant home-state register. Make sure the bank account receiving your money belongs to the licensed entity, as recommended by the FSC’s consumer guidance.

3. Check products and venues

Confirm the ETF’s ISIN, KID, domicile, share class, distribution policy, costs and execution venue. Do this before buying if the Bulgarian tax exemption is part of the investment decision.

4. Complete identification

Regulated brokers normally request identity, address, tax residence and tax identification information. They also assess knowledge and experience where EU suitability or appropriateness rules require it.

5. Fund and archive

Fund the account through an accepted method, preferably from an account in the investor’s own name. Save account agreements, transaction confirmations and annual statements from the beginning rather than trying to reconstruct them at tax time.

Investor and deposit protection

The FSC states that eligible clients of participating Bulgarian investment intermediaries are compensated for 90% of eligible claims, subject to the statutory cap, if the intermediary cannot return client money or assets. See the FSC explanation of investor protection.

This protection does not cover ordinary market losses or an ETF falling in price. For an international broker, the applicable scheme may instead be the scheme of the entity’s home state.

Eligible bank deposits are covered under Bulgaria’s deposit-guarantee framework and harmonised EU rules, generally up to €100,000 per depositor per bank. Cash shown inside a brokerage account is not automatically a bank deposit in the client’s name, so check the broker’s safeguarding and cash-holding arrangements.

Is Bulgaria attractive for investors?

Bulgaria can be attractive for long-term investors because it combines a 10% general personal tax rate, 5% dividend tax and a potentially valuable exemption for qualifying market transactions. Euro adoption also simplifies funding and comparison for investors whose portfolios are primarily euro-denominated.

The main difficulty is classification. The exemption is not a blanket rule for all UCITS ETFs, all EU brokers or all exchange-traded products. Investors must be able to show both what they sold and where the transaction took place.

Advantages include:

euro-area membership from 2026;
access to UCITS ETFs and EU-regulated intermediaries;
a 10% general rate on taxable gains;
a 5% dividend tax; and
exempt treatment for qualifying transactions.

Potential disadvantages include:

a relatively small domestic market;
limited tax automation at many foreign brokers;
execution-venue complexity; and
the need to manage foreign-income reporting and treaty documentation.

Useful Finorum tools and Bulgaria guides

Bulgaria tools

Bulgaria guides

Europe-wide tools

The current Investing in Bulgaria page is intentionally not linked to itself.

Conclusion

Bulgaria offers a favourable framework for many private investors, but the headline rates tell only part of the story. A taxable gain is generally taxed at 10%, while a qualifying disposal under Article 13 may be exempt. The outcome depends on the precise instrument and execution venue.

Verify the broker’s legal entity, preserve the execution record and separate capital gains from dividends and other income. Those habits matter more than relying on a generic list of “tax-free ETFs.”

Disclaimer

This article provides general educational information and is not investment, tax, accounting or legal advice. Tax treatment depends on residence, the asset, execution venue, transaction and individual circumstances. Check the current Personal Income Tax Act and National Revenue Agency guidance, or consult a qualified adviser before filing or making a material investment decision.

Iva Buće

Iva Buće is a Master of Economics specializing in digital marketing and logistics. She combines analytical thinking with creativity to make financial and investment topics accessible to a broader audience. At Finorum, she focuses on translating complex economic concepts into clear, practical insights for everyday readers and investors.