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In this paper, we introduce an iterative speckle filtering method for polarimetric SAR (PolSAR) images based on the bilateral filter. To locally adapt to the spatial structure of images, this filter relies on pixel similarities in both spatial and radiometric domains. To deal with polarimetric data, we study the use of similarities based on a statistical distance called Kullback-Leibler divergence as well as two geodesic distances on Riemannian manifolds. To cope with speckle, we propose to progressively refine the result thanks to an iterative scheme. Experiments are run over synthetic and experimental data. First, simulations are generated to study the effects of filtering parameters in terms of polarimetric reconstruction error, edge preservation and smoothing of homogeneous areas. Comparison with other methods shows that our approach compares well to other state of the art methods in the extraction of polarimetric information and shows superior performance for edge restoration and noise smoothing. The filter is then applied to experimental data sets from ESAR and FSAR sensors (DLR) at L-band and S-band, respectively. These last experiments show the ability of the filter to restore structures such as buildings and roads and to preserve boundaries between regions while achieving a high amount of smoothing in homogeneous areas.