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Mileage allowance in Bulgaria: everything you wanted to know (2026)

23 Jul 2024 · 7 MIN READ

Updated: April 2026

Taking business to Bulgaria? Your employees can gain valuable experience in a new environment, and your company can expand its reach to the Bulgarian market along the way. But, ensuring fair compensation is key to a successful trip—both for your business account and for your travelling team—and that’s complicated to do in a new country and language. 
If you’re here, you may be wondering "how much should I reimburse employees for using their cars?" or "are there any daily allowances involved for Bulgaria?"
 In this guide, we help you understand mileage reimbursements in Bulgaria so you can keep your employees happy, your finances healthy, and your company compliant with regulations when on the road. 
Do skoro! 

How does mileage allowance work in Bulgaria in 2026?

Mileage reimbursement in Bulgaria differs from the flat-rate systems common in other European countries (like Norway, Croatia, Czech Republic, Hungary and Luxembourg to name a few). 
Here, companies reimburse employees for the actual fuel cost incurred during business trips using their personal vehicles. Here's a breakdown of how it typically works:
Who decides the rates? 
There isn't a single, nationally mandated mileage rate in Bulgaria. Instead, employers set the reimbursement rate within their company policies. This means you, as the employer, can determine the reimbursement rate for employees within the internal policies. Consider factors like:
  • Industry standards: mileage rates might differ between industries. For example, sales representatives who drive extensively might receive a higher rate than office workers making occasional business trips
  • Vehicle type: companies might offer different rates depending on the type of vehicle used (car or motor vehicle)
  • Company budget: the overall budget for employee travel can influence the set mileage rate
While there's no set rate, some employers often use rates established by international organisations (like the UN) as benchmarks when setting their internal policies. The UN rates range from $28 cents to $45 cents per mile (€0.26 to €0.42) per kilometre.
What’s covered? 
Mileage allowance typically covers the following:
  • Fuel costs: this is the primary expense reimbursed, aiming to compensate employees for the cost of gasoline, diesel, or other fuel used during authorised business trips
  • Wear and tear: business travel puts extra strain on an employee's car. The allowance accounts for this increased wear and tear due to business use.
What about tax implications?
The tax treatment of mileage allowance depends on the amount offered by the company:
  • Below a threshold (set by the employer): the allowance is generally tax-free for the employee
  • Above the threshold: the portion exceeding the threshold may be considered taxable income for the employee and subject to social security contributions
Want to protect your business while empowering your employees? Create a clear corporate mileage reimbursement policy with our guide.
Car use for business purposes in Bulgaria involves two main scenarios: company cars and employee-owned vehicles with car reimbursement programmes. Let's look at the tax implications for both:

Company cars

When a company provides a car to an employee for both business and personal use, tax considerations come into play for both the company and the employee. Here's a breakdown:
Company's tax on expenses (10%): the company is liable for a 10% tax on the expenses related to operating, maintaining, and repairing the car. This aims to capture the business benefit the company derives from providing the car.
Employee's tax burden: the personal use of the company car is considered a taxable fringe benefit for the employee. To account for this, Bulgaria has a "weekend tax". This tax is currently 3% (down from 10% prior to 2022) on the portion of car expenses allocated to the employee's private use.
Taxable base: the tax applies to the calculated value of the private use. Companies can determine this using different methods:
  • Tracking hours: the company tracks the number of hours the employee uses the car for personal reasons
  • Mileage tracking: the company keeps records of mileage driven for personal trips compared to business travel
  • Fixed percentage: a predetermined percentage of total car expenses is considered the private use portion and taxed accordingly
Note: The "weekend tax" essentially aims to ensure the employee pays tax on the benefit they receive from using the company car for personal needs.

Private cars and motor vehicle

The core purpose of mileage allowance in Bulgaria is to reimburse employees for:
  • Fuel costs: covering the expense of fuel used for business trips
  • Wear and tear: accounting for the increased wear and tear on the employee's car due to business use
Some companies might extend their car reimbursement program beyond these core elements, depending on their policies:
  • Maintenance costs: this could extend beyond just oil changes to cover routine maintenance like tyre rotations or air filter replacements, depending on the policy
  • Parking fees (limited): as mentioned earlier, some companies might offer a limited allowance for business-related parking costs, especially in urban areas
  • Tolls and fees: in some cases, companies might reimburse employees for tolls and other unavoidable fees incurred during authorised business trips (e.g., bridge tolls and road use charges)
  • Depreciation: a small allowance to account for the decrease in the car's value due to business use. This is less common but can be offered by some companies
Always check your company's car reimbursement policy to understand the specific details of their mileage allowance programme, including the reimbursement rate per kilometre, any limitations on mileage or car types and tax implications of the allowance.
Want to build your own travel policy for Bulgaria and beyond? Our guide to corporate travel policies walks you through how to write a car allowance policy step-by-step.

What is not included in the mileage allowance?

While mileage allowance helps with business travel expenses, it doesn't cover everything. Here's travel allowances that are not typically included:
  • Personal travel: mileage allowance is meant for authorised business trips, not commutes to and from work or personal errands
  • Parking fees (generally): most companies don't reimburse for general parking expenses, especially for personal errands or all-day parking during work hours. However, some might offer a limited allowance for business-related parking, particularly in urban areas.
  • Tolls and fees (unless specified): tolls, bridge fees, and other road charges aren't always covered within the base mileage allowance. Some companies might offer separate reimbursement for these expenses, depending on their policy.
  • Daily allowance or subsistence allowance: this aims to cover basic living expenses like meals and incidental costs incurred during the work trip. There are two main categories for daily allowances in Bulgaria: 
Daily Allowance (BGN)
Daily Allowance (EUR)
Overnight stay (secondment)
BGN 40
€20.45
No overnight stay (daily business trip)
BGN 20
€10.23
( source1 , source 2 )

How can I file a mileage allowance claim in Bulgaria?

The first step is keeping detailed records of your business trips. Some companies might ask for receipts for expenses like parking fees or tolls incurred during business travel. This is especially true if these expenses are not explicitly covered by the company policy. Hold on to any travel expense receipts to submit alongside your mileage allowance claim.
Each company has a preferred method for handling mileage allowance claims. You might need to:
  • Complete a dedicated company form: this could be a paper form or an online form accessible through a company portal
  • Submit an electronic record: Some companies might have online systems where you can directly enter your travel details
  • Attach scanned receipts: if your company requires receipts for specific expenses, ensure you scan and attach them to your electronic claim or include them with your paper form
  • Track expenses in your expense management platform: set up a digital system to help your employees track their expenses on business trips.
  • Establish a process: determining whether reimbursement will be added directly to payroll or handled as a separate expense reimbursement
Need an efficient way to manage travel costs? Perk’s centralised invoicing lets you easily track business travel expenses.

Access easy business travel management in Bulgaria and beyond with Perk

Planning a business trip to Bulgaria can be exciting, but juggling flights, hotels, and all that paperwork can quickly become stressful. Perk is a favourite for businesses little and large looking to book corporate flights , accommodation and car rentals with access to a global travel inventory.
Plus, Perk integrates with popular expense management tools , including Airbase, Circula, and Payhawk. So, your employees can easily track and submit expenses incurred during their business trips, whether that’s in Bulgaria or somewhere else.
Don't just ride shotgun on business trips—get in the driver’s seat with Perk!
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