Eastern Europe · EU Member State

Bulgaria

Bulgaria combines 10% headline personal and corporate tax rates with 15% top-up rules only for in-scope large groups, full EU / Schengen access, and relatively low living costs by EU-capital standards, but Bulgarian tax residence can arise through permanent-address and centre-of-vital-interests tests as well as the >183-day rule.

Photo by Alexandr Bormotin on Unsplash

Suitability

•10% headline personal income tax

•10% corporate income tax; 15% minimum-tax overlay only for in-scope large groups

•Full EU membership and full Schengen entry since 2025

•Sofia remains relatively affordable by EU-capital standards

•Growing English-speaking tech community in Sofia

•Good regional access across Southeast Europe

Tax

Personal Rate10% flat headline rate on most personal income

Corporate Rate10% CIT; in-scope MNE and large domestic groups can face 15% minimum taxation via top-up taxes

Tax SystemLow-rate residence-based PIT and 10% CIT, with a Pillar Two top-up overlay for in-scope groups

Pillar Two

P2: ADOPTED

Bulgarian tax residents are generally taxed at 10% on worldwide income, but residence can arise through permanent address or centre of vital interests as well as presence over 183 days in a 12-month period. Non-residents are taxed only on Bulgarian-source income, and the domestic dividend withholding rate remains 5% rather than 10%.

High-volatility checks

Headline 10% rates, dividend WHT, and Pillar Two top-up statusLast checked2026-04-20

Bulgaria’s low headline rates are stable, but top-up-tax mechanics and withholding assumptions still need current checking against live Ministry of Finance guidance.

Ministry of Finance — Personal Income Taxes·Ministry of Finance — Corporation Tax·Ministry of Finance — Withholding Tax

· VERIFIED: 2026-04-20

Residency

Bulgarian tax residency is a tax concept rather than a permit label. Under the Personal Income Tax Act, a natural person can be treated as resident if they have a permanent address in Bulgaria (unless their centre of vital interests is outside Bulgaria), spend more than 183 days in any 12-month period, or have their centre of vital interests in Bulgaria.

Residency TestROUTE & STATUS SPECIFIC

Common Routes

•EU/EEA/Swiss citizens — may stay up to 3 months with a valid ID card or passport; for longer stays, apply for long-term residence through the Migration Directorate
•Type D long-stay visa — core route for many non-EU nationals seeking prolonged or permanent settlement in Bulgaria
•Bulgarian Type D visas normally allow up to 6 months validity / 180 days of stay, while certain research or student cases can run up to 1 year / 360 days

High-volatility checks

Bulgarian tax-residency triggers beyond the 183-day testLast checked2026-04-20

Bulgarian tax residence is not determined by presence alone: permanent address and centre-of-vital-interests factors can matter, and a permanent address can still be overridden when the centre of vital interests is abroad.

EU registration and Type D long-stay route conditionsLast checked2026-04-20

Bulgaria’s immigration position mixes EU free-movement residence registration with non-EU Type D long-stay visa processes, and route details can shift through consular or migration guidance.

Ministry of Finance — Personal Income Taxes·Ministry of Interior — Citizens of EU·Ministry of Foreign Affairs — Long term visa - Visa type D·Ministry of Foreign Affairs — Visa D long-term PDF

· VERIFIED: 2026-04-20

Cost

Overallbudget

Housinglow

Coworkinglow

Lifestyle

ClimateContinental; warm summers (25–35 °C), cold snowy winters

TimezoneEET (UTC+2) / EEST (UTC+3) in summer

LanguageBulgarian (Cyrillic script); English widely spoken in Sofia's business districts

InternetVery good in Sofia and other major cities; fixed broadband and mobile coverage are generally strong by regional standards

Family FitModerate — international schooling exists in Sofia, while many expats still prefer private clinics and private insurance for predictability

Cautions

Bulgarian tax residence is not only a 183-day issue: permanent-address and centre-of-vital-interests analysis can matter too.
Dividend withholding tax remains 5% under domestic rules; do not model 2026 distributions on an assumed 10% domestic rate without current legal confirmation.
Administrative processing times for company registration, Type D visas, and residence filings can still be slow.
Healthcare quality varies outside major cities; many expats keep private cover.

Keep researching Bulgaria

Use this profile as a starting point, then confirm the relevant tax, residency, and business rules with a licensed professional before you act.