Tax Guide for Digital Nomads in Bulgaria — Residency, Taxation and Compliance (2026)

Why Bulgaria stands out for digital nomads

Bulgaria offers a rare combination of fiscal, geographic, and lifestyle advantages that make it uniquely compelling for location-independent professionals:

• 10% flat income tax — one of the lowest in the EU. Freelancers benefit from a 25% standard deduction, bringing the effective rate down to just 7.5%.
• Eurozone since 1 January 2026 — EUR is the official currency. No currency conversion costs, no exchange rate risk for euro-denominated earners.
• EU and Schengen membership — free movement of people and capital across the European Union.
• Affordable cost of living — despite post-euro price increases, Bulgaria remains significantly cheaper than Western Europe. A comfortable single lifestyle in Sofia costs EUR 1,200–1,600/month.
• Fast internet — average speeds exceed 100 Mbps; Bulgaria consistently ranks among the EU's top performers.
• 68+ double taxation treaties (DTTs) — covering Germany, the UK, the Netherlands, France, Italy, Spain, the US, and most other countries digital nomads typically come from.

For full relocation support, visit our dedicated tax residency microsite.

D Visa for digital nomads

Since January 2026, Bulgaria's Foreigners Act provides a dedicated D visa for digital nomads. The visa is designed for non-EU nationals who work remotely for foreign employers or clients.

Key requirements

• Proof of remote work — an employment contract with a foreign company, or a portfolio of contracts with foreign clients.
• Minimum income — the threshold varies by ordinance; it is typically a multiple of Bulgaria's minimum wage.
• Health insurance — long-term coverage valid in Bulgaria, with a minimum EUR 30,000 cover. Standard travel insurance is not accepted.
• Valid passport — at least 18 months remaining validity at the date of application.
• Criminal record certificate — from your country of nationality, apostilled and translated into Bulgarian.

Important restrictions

• The visa does NOT permit employment by a Bulgarian employer or serving Bulgarian clients.
• Duration: up to 1 year, renewable.
• Leads to a long-term residence permit.

EU citizens do not need this visa — they have the right to reside freely in Bulgaria and only need to register their address. Read more about the digital nomad visa in detail.

Tax residency — the 183-day rule

Bulgarian tax residency is determined by two alternative criteria (Art. 4, Personal Income Tax Act):

1. 183+ days of physical presence in Bulgaria within a calendar year — you become a Bulgarian tax resident and are taxed on your worldwide income.
2. Centre of vital interests — if your family, permanent home, or principal economic activity is in Bulgaria, you may be treated as a resident even with fewer than 183 days of presence.

Most digital nomads who relocate long-term become tax residents. This is not necessarily a disadvantage — at 10% flat tax, Bulgaria's rate is substantially lower than in most Western European countries (where rates of 30–50% are common).

Full details: Tax Residency in Bulgaria — dedicated microsite.

Option 1: Freelancer (self-insured person / SOL)

Registering as a self-insured person exercising a liberal profession is the simplest path to legal activity in Bulgaria. It is ideal for digital nomads with moderate income who value simplicity over corporate structure.

How it works

• You register with the National Revenue Agency (NRA) as a self-insured person.
• You choose your insurable income (minimum ~EUR 275/month, maximum ~EUR 2,112/month).
• You receive a 25% standard deduction (normative expenses) — this is deducted from gross income automatically, with no need to document actual expenses.
• Tax: 10% on the remaining 75% → effective tax rate of 7.5%.

Advance payments and filing

• Quarterly advance tax payments: Q1 by 30 April, Q2 by 31 July, Q3 by 31 October.
• Annual tax return (Appendix 3, code 307) — due by 30 April of the following year.

Pros and cons

• + Effective rate of 7.5% — among the lowest in the EU.
• + Simplified accounting — no full financial statements required.
• − Unlimited personal liability.
• − Less credibility with corporate clients compared to a company.

Read more: Freelancer registration in Bulgaria.

Option 2: EOOD (single-member LLC)

An EOOD (Ednolichno Druzhestvo s Ogranichena Otgovornost) offers more structure, limited liability, and better optics for corporate clients. It is the preferred choice for digital nomads with higher income or those invoicing larger companies.

How it works

• Minimum share capital: EUR 1.
• Corporate income tax (CIT): 10% on profits.
• Dividend tax: 5% when distributing profits → combined effective rate of 14.5%, rounded to 15% in practice.
• You can employ yourself under a management and control contract (DUK) and draw a salary.
• Tax optimisation: a salary + dividend split reduces the overall tax and social security burden.

Pros and cons

• + Limited liability — personal assets are protected.
• + Stronger corporate image when invoicing international clients.
• + Flexibility in tax planning (salary vs. dividend mix).
• − Full double-entry bookkeeping, annual financial statements, and annual activity report required.
• − Combined rate of 15% (higher than the 7.5% freelancer effective rate).

Read more: Company registration in Bulgaria.

Freelancer vs. EOOD — side-by-side comparison

Rule of thumb: for annual income below EUR 50,000–60,000 the freelancer structure is more tax-efficient. Above that threshold, the EOOD allows better optimisation through a salary + dividend split, while also providing limited liability.

Social security for digital nomads

Health and social insurance are mandatory for Bulgarian tax residents (Art. 33, Health Insurance Act).

EU citizens — A1 certificate

• If you are already insured in another EU country, you can keep your home-country insurance for up to 24 months via an A1 certificate issued by your home social security authority.
• After the A1 expires, you must insure yourself in Bulgaria.

Non-EU nationals / insuring in Bulgaria

• Minimum insurable income: ~EUR 275/month.
• Maximum insurable income: ~EUR 2,112/month.
• Contribution rate: ~30–33% of the chosen insurable income (covers pension, health, unemployment, and general sickness).
• As a self-insured person, you bear both the employer and the employee portions.

Important: Social security contributions are calculated on your chosen insurable income, not your total earnings. This means a freelancer earning EUR 5,000/month who declares the minimum insurable income (EUR 275) pays contributions on EUR 275 only — though an annual equalisation may apply based on actual income reported in the tax return.

Read more: Taxes and social security in Bulgaria.

Avoiding double taxation (DTTs)

Bulgaria has signed more than 68 double taxation treaties (DTTs), including agreements with the key source countries for digital nomads: Germany, the UK, the Netherlands, France, Italy, Spain, the US, Canada, Australia, and many others.

How to apply a DTT

1. Obtain a certificate of tax residency from the Bulgarian NRA (you will need proof of address registration and utility bills).
2. Submit the certificate to the tax authority in your former country of residence.
3. Apply the treaty's method for eliminating double taxation — typically either the credit method (offsetting foreign tax paid) or the exemption method.

Tie-breaker rules

If both countries claim you as a tax resident, the DTT's tie-breaker provisions determine residency through a sequential test: permanent home → centre of vital interests → habitual abode → nationality. In most cases, relocating your permanent home and daily life to Bulgaria is sufficient to resolve the tie in Bulgaria's favour.

Banking in Bulgaria

Opening a Bulgarian bank account is a practical necessity for tax compliance, receiving local payments, and managing day-to-day finances.

• Documents required: passport or national ID, proof of address in Bulgaria, residence permit (or D visa for non-EU nationals).
• EUR accounts are the standard since 1 January 2026, following Bulgaria's eurozone entry.
• All major Bulgarian banks — UniCredit Bulbank, DSK Bank, Postbank, Raiffeisen — accept foreign nationals.
• Online banking is available in English at most banks.
• Wise and Revolut are widely used by digital nomads in Bulgaria but do not replace a Bulgarian bank account for tax compliance purposes (NRA bank account requirements, VAT refunds, etc.).

7 practical steps to relocate

1. Obtain a D visa (non-EU nationals) or register your address (EU citizens).
2. Get a Bulgarian personal number — EGN (for EU citizens) or LNCh (for non-EU nationals).
3. Register as a freelancer or incorporate an EOOD, depending on your chosen structure.
4. Open a bank account at a Bulgarian bank.
5. Register with the NRA — automatic for companies; separate registration for freelancers.
6. Start paying social security contributions and quarterly advance tax payments.
7. File your annual tax return by 30 April of the following year.

Need professional assistance? Visit our dedicated tax residency microsite for end-to-end relocation support — from visa applications to tax registration and ongoing compliance.

Frequently asked questions