Business trip per diem in Bulgaria 2026: rates and documents

Business trip per diem in Bulgaria is one of the three business trip allowances (командировъчни пари), alongside the travel and accommodation allowances (Art. 1 of the Regulation on Domestic Business Trips, Наредба за командировките в страната). From 1 January 2026 the per diem for a trip within Bulgaria is €22 for each day of a trip with an overnight stay, including the return day, and €11 for a trip without an overnight stay. Per diem up to double the regulated rate is neither taxed nor subject to social contributions. Accommodation is paid against a document up to the amount approved by the employer, travel according to the means of transport in the order, and for trips abroad the rates depend on the country.

What is the per diem for a business trip within Bulgaria in 2026

The per diem for a business trip within Bulgaria is €22 for each day of the trip when the employee stays overnight at the destination (Art. 19, para. 1 of the Regulation on Domestic Business Trips). The rate applies from 1 January 2026 and was introduced by Council of Ministers Decree No. 354 of 29 December 2025 (State Gazette No. 115 of 2025). A business trip is counted in calendar days and includes the days of the task, the travel days and weekends and public holidays (Art. 2), so on a trip with an overnight stay the €22 is also paid for the day of return.

Who counts as being on a business trip

A business trip is the performance of work duties away from the permanent workplace when the needs of the business require it, for no more than 30 calendar days without a break; a longer trip requires the employee's written consent (Art. 121, paras. 1 and 2 of the Labour Code, КТ). For the duration of the trip the employee receives, in addition to gross pay, travel, daily and accommodation allowances (Art. 215, para. 1 of the Labour Code).

The regulation expressly excludes three groups who are not on a business trip (Art. 6, para. 1):

• 01people whose regular work is done while travelling, for example drivers, pilots, sailors and transport crews;
• 02people who perform their duties within the town where their workplace is;
• 03purchasing agents, delivery staff, couriers, distributors and others whose work by its nature involves travel between towns.

Posting a worker to provide services in another EU or EEA country or in Switzerland under Art. 121a of the Labour Code is a separate regime with its own regulation and is outside the scope of this article.

Accommodation allowance: is there a cap per night

The accommodation allowance within Bulgaria is the amount actually paid for the night, including taxes and fees, against a document issued in the prescribed manner, but no more than the approved amount for one night (Art. 26, para. 1). The regulation sets no cap in euro: the employer must approve the accommodation amount, and the approved amount may be higher than the one first set in the order (Art. 32, item 3, letter (a)).

• 01Nights cannot be offset against each other: savings on one night do not cover an overspend on another (Art. 26, para. 1).
• 02No accommodation allowance is paid when free accommodation was used (Art. 27).
• 03If it is not possible to stay overnight at the destination, the employee may stay in a neighbouring town and receives the related travel costs (Art. 17).

Travel costs on a business trip within Bulgaria

The travel allowance covers the journey to the place of the task and back, plus public transport within the town (Art. 11). The employer chooses the means of transport and states it in the order (Art. 12, para. 1).

• 01Private car: the travel allowance equals the value of the fuel used at the manufacturer's combined consumption rate (Art. 13, para. 1). The order must state the type and make of the car, the consumption, the fuel type and price, the route and the distance in kilometres by road (Art. 13, para. 2).
• 02When other employees on the same trip ride in the car, the travel allowance is paid only to the driver (Art. 13, para. 3).
• 03Plane: the ticket or ticket record and/or the boarding pass are attached to the claim (Art. 32, item 3, letter (b)).
• 04Free transport: no travel allowance is paid (Art. 15, item 1).

Business trips abroad: per diem and accommodation by country

The per diem and accommodation allowance for a trip abroad are paid in the amounts and currencies in Annex No. 2 to the Regulation on Business Trips and Specialisations Abroad (Наредба за служебните командировки и специализации в чужбина), Art. 15, para. 1. For EU countries the annex amounts are in euro. The head of a company may set a per diem different from the annex, but not above double the annex rate (Art. 17, para. 1), and where necessary may pay accommodation at actual cost (Art. 17, para. 2).

The rates are those of Annex No. 2 as amended in State Gazette No. 8 of 2025. For other countries check the annex in the current text of the regulation. The rules abroad differ from those at home:

• 01Accommodation is accounted for with a hotel document, and the total for the trip is measured against the annex limit; within that total an overspend on individual nights is allowed (Art. 37, paras. 2 and 4). If less than the limit was paid, the difference is returned to the company, and any excess over the entitlement comes out of the per diem (Art. 37, paras. 2 and 3).
• 02Accommodation includes the bed, the booking, breakfast, fees and taxes (Art. 25), while the per diem covers food, city transport and other costs (Art. 18, para. 1).
• 03A transfer between the airport and the destination town is paid separately against a receipt when it exceeds 30% of the per diem for that travel day (Art. 18, para. 1).
• 04When the host provides full board, 30% of the per diem is paid (Art. 20, para. 1).
• 05For a stay of less than 24 hours but over 4 hours in a country bordering Bulgaria, 35% of that country's per diem is paid (Art. 21).
• 06The full per diem is paid for up to 30 consecutive calendar days and is reduced by 25% for the days after that (Art. 22).
• 07If the employee was in two or more countries on the same day, the per diem is that of the country where the employee spent more time (Art. 24).
• 08Air travel is in economy class (Art. 13, para. 2); by car, the driver receives 50% of the price of a plane ticket or the value of the fuel at the consumption rate, plus motorway tolls and parking (Art. 13, para. 4).
• 09Medical insurance for the duration of the trip is mandatory (Art. 28, para. 1), and visas, airport taxes and conference fees are paid by the company (Art. 30).

Which documents you need: the business trip order and report

A business trip is made on the basis of a written order issued in advance, which may also be an electronic document (Art. 8, para. 1 of the Regulation on Domestic Business Trips). In an emergency an oral instruction is allowed, but the written order must follow within 3 days (Art. 8, para. 2). The business trip order (заповед за командировка) contains (Art. 9, para. 1):

• 01the name of the company and the officer issuing the order;
• 02the full name and position of the employee;
• 03the destination, the task and the duration of the trip;
• 04the daily, travel and accommodation allowances the employee is entitled to;
• 05the means of travel and the details that determine the travel allowance;
• 06the type of report on the work done;
• 07whether the order must be certified with the signature of an authorised person at the destination.

The duration or other terms can only be changed by a new written order (Art. 9, para. 2). An order for a trip abroad has its own required content, including the country and town, the financial terms and the route (Art. 5, para. 2 of the Regulation on Business Trips and Specialisations Abroad).

After the return there are two separate documents: a report on the work and a report on the money.

Ask for hotel and ticket invoices with the company's details. A primary accounting document addressed to an external recipient contains the recipient's name, address and company number (ЕИК) (Art. 6, para. 1, item 3 of the Accountancy Act, ЗСч), and VAT on an invoice can be deducted only when the company is named as the recipient (Art. 71, item 1 of the VAT Act, ЗДДС). The other required details are covered in the article on Bulgarian invoice requirements. Documents in a foreign language are translated into Bulgarian only where a law requires it (Art. 5, para. 2 of the Accountancy Act).

Is per diem taxable in Bulgaria

Per diem up to double the rate set in a legal act is not included in taxable employment income, and travel and accommodation allowances are not taxed when documented (Art. 24, para. 2, item 5 of the Personal Income Tax Act, ЗДДФЛ). The same amounts are not insurable income (Art. 1, para. 8, item 1 of the Regulation on the Elements of Remuneration and Insurable Income, Наредба за елементите на възнаграждението и за доходите, върху които се правят осигурителни вноски).

Under a civil (non-employment) contract, travel and accommodation paid by the contracting company are not taxed when documented, and per diem is not taxed up to double the rate set for employees (Art. 13, para. 1, item 23 of the Personal Income Tax Act).

For the company, travel and subsistence costs are deductible when the trip relates to the business and the person is an employee or engaged under a non-employment contract, including managers (Art. 33, para. 1, item 1 of the Corporate Income Tax Act, ЗКПО). The expense must be supported by a primary accounting document (Art. 10, para. 1). Travel costs of a shareholder or partner travelling in that capacity are not deductible (Art. 33, para. 2). Art. 33 of the Corporate Income Tax Act sets no cap on the amount.

VAT on hotels and travel: when input tax credit applies

VAT on an invoice for a hotel in Bulgaria is deductible as input tax credit when the company is VAT-registered, the stay serves its taxable supplies (Art. 69, para. 1 of the VAT Act) and the company is named as the recipient on the invoice (Art. 71, item 1). There is no credit when the stay is for purposes other than the economic activity or for representation or entertainment (Art. 70, para. 1, items 2 and 3). Hotel accommodation in Bulgaria is taxed at 9% VAT (Art. 66a, item 1). Fuel for a company passenger car gives no right to input tax credit, except in the cases in Art. 70, para. 2 (Art. 70, para. 1, item 5).

For a hotel in another EU country, the place of supply is where the property is located (Art. 21, para. 4, item 1, letter (c) of the VAT Act), so the invoice carries that country's VAT. This VAT does not go into the Bulgarian VAT return, and no Art. 117 protocol is issued for the hotel. A VAT-registered company can ask the country where the VAT was paid for a refund: the application is filed electronically, with a qualified electronic signature, through the web application of the National Revenue Agency (НАП, the NRA), and the conditions and periods follow the law of the country of refund (Arts. 13 and 14, para. 1 of Ordinance No. N-9 of 16 December 2009). The NRA does not forward the application if for the period the company was not VAT-registered or made only supplies without a right to input tax credit (Art. 14, para. 4).

Example: 3 days in Varna

A Sofia company sends an employee to Varna from 14 to 16 October 2026, with two overnight stays. The order sets a per diem of €44.00 a day (200% under Art. 21, para. 1), accommodation up to €80.00 a night and travel by train. The employee receives an advance of €320.00. The ticket and hotel prices are assumptions for the example.

The per diem of €132.00 does not exceed double the rate (3 × €44.00), so it is neither taxed nor subject to contributions. Had the manager not approved €88.00 for the second night, the employee would have received €80.00 for it and borne the remaining €8.00, because the €4.00 saved on the first night does not offset the overspend (Art. 26, para. 1). The report on the work done is due by 19 October 2026 (Art. 29, para. 1). The costs are deductible for corporate income tax (Art. 33, para. 1, item 1 of the Corporate Income Tax Act), and the VAT on the hotel invoice is input tax credit if the company is VAT-registered.

Example: 3 days in Vienna

The company sends an employee to Vienna from 20 to 22 October 2026, with two overnight stays and economy flights. The per diem follows Annex No. 2: €56.00 a day for Austria, with accommodation up to €207.00 a night. The company pays the €280.00 flights and the €9.00 medical insurance directly. The employee receives an advance of €600.00. The prices are assumptions for the example.

We assume the flights are on the morning of 20 October and the evening of 22 October, so on all three days the employee spent more time in Austria (Art. 24). When the passport has no entry and exit stamps, the days are counted from the transport document (Art. 37, para. 1).

The total cost of the trip to the company is €917.00 (€628.00 + €280.00 + €9.00). The per diem of €168.00 is below double the rate of €336.00 (3 × €112.00), so it is not taxed. The second night exceeds €207.00, but the total for both nights is within the limit, so it is paid in full; within Bulgaria the same situation could not be offset. The report on the foreign currency spent is due by 5 November 2026 (Art. 39, para. 1). The Austrian VAT on the hotel invoice is not deducted in the Bulgarian VAT return; the company can apply through the NRA for its refund by 30 September 2027.

Common mistakes

• 01Paying the old rate. From 1 January 2026 the per diem within Bulgaria is €22 with an overnight stay (Art. 19, para. 1), not BGN 40 (€20.45) as it was until the end of 2025.
• 02Skipping the per diem for the day of return. On a trip with an overnight stay the per diem is paid "for each day of the trip", and the travel days are part of the trip (Art. 2 and Art. 19, para. 1).
• 03Offsetting nights within Bulgaria. Savings on one night do not cover an overspend on another (Art. 26, para. 1); this is allowed only on trips abroad, within the overall limit (Art. 37, para. 4 of the Regulation on Business Trips and Specialisations Abroad).
• 04Paying a per-kilometre rate for a private car. The regulation requires the value of the fuel at the manufacturer's consumption rate, with the car and route details in the order (Art. 13, paras. 1 and 2).
• 05Paying trip allowances for a task in the same town or to a courier. These people are not on a business trip (Art. 6, para. 1, items 2 and 3).
• 06Issuing the order after the trip. The order is issued in advance (Art. 8, para. 1), and an oral instruction is put in writing within 3 days (Art. 8, para. 2).
• 07Deducting foreign hotel VAT in the Bulgarian VAT return. The place of supply is the other country (Art. 21, para. 4, item 1, letter (c) of the VAT Act), and the tax is recovered only through a refund application to that country.

In smetni.app

Employee expense reports, including reports for business trips, are in the Purchases module on the Business plan and above. See plans and pricing for what each plan includes.