Travel Expenses in Bulgaria, what to know
At T&G Consulting, one of the most frequent questions we receive from entrepreneurs, freelancers, and foreign investors is: Which travel expenses are deductible in Bulgaria? ✈️ On the surface, it may seem straightforward, but in practice mistakes are common. The Bulgarian tax authorities carefully review travel claims, especially when personal and business purposes overlap. This guide explains what is allowed, what is not, and how to stay compliant while optimizing your tax position.
Which Expenses Are Deductible
Travel expenses can only be deducted if they are directly linked to your business activity. The costs must be necessary, reasonable, and documented. Here are typical deductible cases:
- Trips to meet with clients, suppliers, or business partners.
- Participation in conferences, trade fairs, and professional seminars.
- Travel to company branches, warehouses, or project sites.
- Transportation and accommodation such as flight tickets, train tickets, fuel, tolls, parking, and hotels.
- Daily allowances (per diems) within the statutory limits.
Which Expenses Are Not Deductible
Private travel, even if combined with minor business activities, cannot be deducted. ❌ Common examples include:
- Family vacations where you also check emails or take calls.
- Trips without proper documentation such as invoices, tickets, or hotel receipts.
- Luxury spending that does not match your company’s profile (e.g., five-star resorts without meetings).
- Mixed business and personal trips where the business part is not clearly separated.
Examples in Practice
| Allowed (Deductible) | Not Allowed (Non-Deductible) |
|---|---|
| Flight to Berlin for a trade fair where you present your products. | Flight to Berlin for holiday with one client lunch added. |
| Hotel stay during a two-day industry conference. | Luxury spa resort booked as “business inspiration.” |
| Taxi from airport to client’s office. | Car rental for sightseeing with family. |
| Per diem for staff training within legal limits. | Per diem exceeding the maximum amount allowed by law. |
The Role of Documentation
Documentation is the key factor when deducting travel expenses. 📑 Always keep:
- Invoices and receipts for hotels, flights, and transport.
- Tickets and boarding passes.
- Conference agenda or a written explanation of the trip’s purpose.
Without proper evidence, your deduction may be rejected during a tax audit, and penalties can apply. The Bulgarian tax authorities will not accept undocumented or vaguely explained expenses.
In summary, deductible travel expenses must be directly related to business activity, reasonable in size, and supported by reliable documentation. Anything personal, luxury-driven, or undocumented will be disallowed. By following these rules, you protect your company from unnecessary risks and improve your financial planning.
T&G Consulting provides professional support for both local companies and international businesses operating in Bulgaria. Ready to clarify your travel expense policy?
Contact us today and visit our partners’ channel here!