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Deducting Travel Expenses in Bulgaria – 2025 Guide
At ASB Accounting Services Bulgaria, we often receive questions from both local companies and foreign investors: Which travel expenses can be deducted in Bulgaria, and which cannot? This guide provides practical answers with examples to help you stay compliant and avoid unpleasant surprises during a tax audit.
What You Can Deduct
Travel expenses are deductible when they are directly linked to your business activity. The law allows companies to claim costs that are necessary, reasonable, and properly documented. Typical deductible expenses include:
- Travel to meet clients, suppliers, or partners.
- Attendance at business conferences, seminars, and trade fairs.
- Visits to another branch, warehouse, or project site.
- Transport and accommodation: plane tickets, fuel, tolls, parking, hotels.
- Daily allowances (per diems) within the legal limits.
What You Cannot Deduct
Private or personal trips are not deductible. Even if you answer a few emails during your holiday, it does not make the trip a business expense. Examples of non-deductible costs include:
- Family vacations or leisure travel without a business purpose.
- Trips without proper documentation (invoices, tickets, hotel receipts).
- Excessive luxury spending that does not match your company’s profile.
- Combined business and personal travel, unless the business portion is clearly separated.
Allowed vs. Not Allowed – Practical Examples
| Allowed (Deductible) | Not Allowed (Non-Deductible) |
|---|---|
| Flight to Vienna to attend a trade fair and present your products. | Flight to Vienna for a holiday, with one business meeting added. |
| Hotel stay during a two-day conference with clients. | Luxury spa resort for “business inspiration” without meetings or agenda. |
| Fuel and tolls for visiting your company’s branch in another city. | Weekend trip to the seaside with family, even if you make work calls. |
| Daily allowance within legal limits for a staff training event. | Daily allowance above the maximum allowed by law. |
| Taxi receipts from the airport to a client’s office. | Car rental for personal sightseeing during a holiday. |
Key Rule – Documentation
For every business trip, you must prove that the travel was necessary and connected to your company’s activity. Always keep:
- Invoices and receipts for transport, hotels, and related services.
- Tickets and boarding passes.
- Written explanation of the trip’s purpose (meeting agenda, conference program).
If audited, the tax authorities in Bulgaria will require this proof. Without it, your claim may be rejected, and penalties may apply.
In Bulgaria, travel expenses are deductible only when they are clearly linked to your business, reasonable in size, and properly documented. Anything personal, luxury-driven, or undocumented will not be accepted.
By following these rules, both local companies and foreign businesses operating in Bulgaria can optimize their tax position while staying compliant with local regulations.
Need Expert Support?
At ASB Accounting Services Bulgaria, we help both local companies and international investors stay compliant and optimize their taxes. If you want clarity on travel expenses or any other accounting matter, contact us today for consultation. Our team is ready to guide you with practical advice tailored to your business.