🇧🇬 Tax residency in Bulgaria

Bulgaria's headline trigger is the 183-day rule: spend more than 183 days in the country and you are a tax resident. But that is not the only route in. Bulgaria also applies a centre of vital interests test, so you can be claimed as a resident below the day threshold if your personal and economic ties point to Bulgaria: property you own there, a spouse and children based there, a Bulgarian-registered business you run. A flat in Sofia plus most of your year spent in the country is enough for the tax authority to take an interest, even if your day count stops short of 183. It is about where your life actually happens, not just where you sleep.

If you are resident, the maths is refreshingly simple: Bulgaria charges a flat 10% personal income tax, one of the lowest rates in the EU, and it applies to worldwide income. Freelance income from foreign clients, dividends from a foreign company, rent from a property abroad: all of it goes into the Bulgarian return at that flat rate. Earn €50,000, owe €5,000. The rate is low, but the scope is global, so you cannot simply leave foreign earnings off the return.

Bulgaria has no special regime for digital nomads or remote workers. There is no reduced-rate programme, no foreign-income holiday, no non-dom construct. You are either a resident taxed at the flat 10% on worldwide income or you are not resident and taxed only on Bulgarian-source income. For most remote workers the flat rate itself is the attraction; there is nothing further to apply for.

On treaties: Bulgaria has an income tax treaty in force with the United States, which provides credit relief so the same income is not taxed twice; US citizens still file US returns regardless of where they live. Bulgaria also has treaties with the UK and Germany. In broad terms these decide which country taxes which income and give credit for tax paid in the other, but the outcome depends on your income types and where each side considers you resident. The National Revenue Agency publishes the official treaty list; check the actual treaty for your home country rather than assuming.

An accountant becomes worthwhile in specific situations rather than at any particular income level: you have multiple income streams across countries, you own Bulgarian property, you are setting up a local company or taking on Bulgarian clients, or your position under the centre of vital interests test is genuinely arguable and you want it documented before the tax authority asks. For a single stream of foreign freelance income and a clear day count, the filing is manageable; once ties multiply, professional help stops being optional.

If you spend over 183 days in Bulgaria or your personal and economic life is anchored there, expect a flat 10% tax on your worldwide income.

This information is for educational purposes only and does not constitute legal or tax advice.