Bulgaria – Canada Tax Treaty
The Bulgaria-Canada tax treaty caps withholding on dividends at 15% for portfolio investors and 10% for qualifying direct investment, and interest at 10%. Royalty rates vary by category, from 0% on copyright to 10% on film and television. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 3 active treaties in Bulgaria's network and one of 51 in Canada's. The general dividend rate of 15% compares to a median of 15% across Bulgaria's network and 15% across Canada's.
Verified data
CRA Part XIII Withholding Tax Rates (canada.ca) (Verified April 2026)
Withholding Rate Summary
Source: Canada Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Canada) |
|---|---|---|
| Dividends (general) Portfolio investors | 15%saves 10% | 25% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 10%saves 15% | 25% |
| Interest Bank interest, bonds, loans | 10%saves 15% | 25% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 2.5% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (Canada)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 15% applies to portfolio investors. A reduced rate of 10% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 25%.
Source: Canada Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 10% withholding under this treaty, compared to the 25% statutory rate. This represents a 15% reduction from the statutory rate.
Source: Canada Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 0% to 10%.
Source: Canada Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: Canada Treaty Reference
Comparative Context
🇧🇬Bulgaria's Network
Among Bulgaria's 3 active treaty partners, the 15% general dividend rate ranks 2nd (median: 15%).
| Partner | Rate |
|---|---|
| United States | 10% |
| Canada (this treaty) | 15% |
| United Kingdom | 15% |
🇨🇦Canada's Network
Among Canada's 51 active treaty partners, the 15% general dividend rate ranks 5th (median: 15%).
| Partner | Rate |
|---|---|
| Austria | 15% |
| Australia | 15% |
| Belgium | 15% |
| Bulgaria (this treaty) | 15% |
| Switzerland | 15% |
| Chile | 15% |
| China | 15% |