Bulgaria

In Bulgaria, cryptocurrencies are not specifically defined by law but are generally treated as financial assets for tax purposes. The trading and holding of crypto assets are legal, with the country applying its general tax legislation rather than a dedicated crypto-specific framework. The National Revenue Agency (NRA) is the governing body responsible for administering crypto taxation. It applies the principles outlined in the Personal Income Tax Act and the Corporate Income Tax Act to crypto-related activities. For individuals, a flat 10% capital gains tax applies to the annual net profit derived from the sale or exchange of crypto assets. This means gains are calculated as the sale price minus the acquisition cost. Importantly, there is no distinction between short-term and long-term holdings, the 10% rate applies regardless of how long an asset was held. For companies, the standard corporate tax rate is 10%, though certain crypto-related business activities may see this rise to 15%. Value Added Tax (VAT) is exempt for crypto-to-crypto and crypto-to-fiat exchanges, but other crypto services may incur a 20% VAT if a company's turnover exceeds 100,000 BGN. Specific crypto activities also have clear tax treatments. Staking rewards are not taxed upon receipt, instead, they become taxable at a 10% capital gains rate only when the rewards are sold. Crypto mining is generally considered a business activity and is taxed at 15% as business income, with electricity and hardware expenses being deductible. Activities in Decentralized Finance (DeFi), such as yield farming and liquidity provision, are subject to a 10% tax on realized gains. Non-fungible Tokens (NFTs) are treated like other financial assets, incurring a 10% capital gains tax upon sale, though professional creation of NFTs might be taxed as income. Both converting crypto to fiat currency and exchanging one cryptocurrency for another are considered taxable events, with a 10% tax on the gain calculated at the market value at the time of the transaction.