Quick answer
Bulgaria has no special tax regime for expats or digital nomads in 2026, and it doesn't need one. Everyone pays a flat 10% income tax, 10% corporate tax and 5% on dividends. Freelancers deduct a flat 25% of their fees. Social contributions are capped, and a digital nomad residence permit now exists for non-EU remote workers.
Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad
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Find my savings →You work remotely and you're weighing Bulgaria against other EU bases. You've heard the 10% figure, and you want to know if there's a catch or a bonus scheme on top. After this guide, you'll know what Bulgaria offers newcomers in 2026, what it costs you in practice, and how to set yourself up legally.
Bulgaria expat and digital nomad incentives in 2026: the key figures
| Item | 2026 rule |
|---|---|
| Special expat or impatriate regime | None; the general system applies to everyone |
| Personal income tax | 10% flat on worldwide income for residents |
| Freelancer flat expense deduction | 25% of fees, no receipts needed |
| Corporate income tax | 10% |
| Dividend tax | 5% |
| Social contributions for the self-employed | About 27.8% of insured income, capped monthly |
| Capital gains | 10%, with broad exemptions for EU-listed shares and long-held property |
| Digital nomad residence permit | Available to non-EU remote workers since 2025 |
Is this guide for you?
Read on if you…
- are a freelancer or remote employee considering a move to Bulgaria;
- run a small online business and want a low-tax EU base with real substance;
- come from outside the EU and need a legal way to live and work remotely in Bulgaria.
Probably not your case if you…
- want a time-limited flat-tax regime on foreign income only; Bulgaria taxes residents on worldwide income;
- stay under 183 days and keep your life elsewhere; you likely remain non-resident.
Does Bulgaria have a special tax regime for expats?
No, and that's the point. Countries like Italy or Portugal offer temporary discounts on high general rates. Bulgaria simply keeps the general rates low for everyone, with no end date and no application.
Once you're resident, you pay 10% on your worldwide income. Residency starts if you spend more than 183 days in any 12 months in Bulgaria. It also starts if your centre of vital interests is there – basically where your life is: home, partner, kids, main business. The full tests are in our guide to tax residency in Bulgaria.
Honestly? For most freelancers, Bulgaria's permanent 10% beats temporary regimes elsewhere. You don't lose it after five years.
Bulgaria has around 70 double tax treaties. They stop you paying twice when income comes from abroad.
How much do freelancers and founders really pay?
As a freelancer
If you work under a free profession – a self-employed activity such as consulting, design or IT – you deduct a flat 25% of your fees as costs. You don't need receipts. The other 75%, minus social contributions, is taxed at 10%.
Social contributions run at about 27.8% of your insured income: pension and health combined. You choose a monthly insured income between the minimum wage and the cap. The cap means high earners pay a fixed maximum.
As a sole trader (ET)
A sole trader (ET) – a registered one-person business – pays 15% on profit, with actual expenses deducted. It rarely beats the freelance route for service businesses.
Through a company (EOOD)
A single-member limited company (EOOD) pays 10% corporate tax. Profits paid out as dividends face 5%. That makes a combined rate of about 14.5% on distributed profit. Setup and liability details sit in our guide to legal forms of business in Bulgaria.
| Route | Tax on EUR 60,000 of profit (approx.) |
|---|---|
| Freelancer (free profession) | About 7.5% income tax, plus capped social contributions |
| Sole trader (ET) | 15% on profit, plus social contributions |
| EOOD paying dividends | 10% corporate tax, then 5% on dividends: about 14.5% |
How do you get the right to live in Bulgaria?
EU and EEA citizens
You can move freely. Stay over three months and you register for a long-term residence certificate with the Migration Directorate.
Non-EU remote workers
Since 2025, Bulgaria offers a residence route for digital nomads. It targets people working remotely for employers or clients outside Bulgaria. You apply for a long-stay D visa, then a residence permit, typically valid for up to one year and renewable.
Here's the catch: a residence permit doesn't automatically make you tax resident, or keep you non-resident. Tax residency follows the 183-day and vital-interests tests. Spend most of the year in Bulgaria and you'll owe Bulgarian tax on your worldwide income.
The practical steps are in our practical guide to obtaining your tax residency in Bulgaria.
What about your investments as a newcomer?
Investment income is light too:
- Shares and funds on EU/EEA regulated markets: capital gains exempt.
- Other shares: 10% on the gain.
- Crypto: 10% on the net gain.
- Property: one home held over three years is exempt; up to two other properties after five years.
- Bank interest: 8%; dividends: 5%.
Bulgaria has no exit tax for individuals. Leaving later costs nothing on departure. The details are in our guide to capital gains tax in Bulgaria.
Example – Sofia, a Canadian UX consultant in Varna
Sofia earns EUR 60,000 a year from clients in Canada and Germany. She moves to Varna in 2026 on a digital nomad permit and becomes tax resident. She works as a freelancer. After the 25% flat deduction, her taxable base is EUR 45,000. Her social contributions at the cap are roughly EUR 7,000. Her income tax is about EUR 3,800. Total: around EUR 10,800, or 18% of her fees.
Sofia's Bulgarian setup took three decisions. Yours may need the same.
Share how you earn and where you live, and we'll find your savings for 2026.
Find my savings →Common mistakes (and what they cost)
- Assuming a residence permit equals tax residency → you may owe tax in two countries, or none where you expected.
- Keeping your old home and family abroad → your old country can still claim you as resident under its vital-interests test.
- Forgetting social contributions as a freelancer → back payments plus late interest of the base rate plus 10 points a year.
- Running an EOOD with no local substance → foreign tax authorities may tax the company where you actually manage it.
- Not filing the annual return by 30 April → fines and interest, even if most tax was already paid.
Frequently asked questions
Does Bulgaria have a digital nomad visa?
Yes. Since 2025, non-EU remote workers can apply for a long-stay visa and residence permit as digital nomads. You must show remote work for employers or clients outside Bulgaria, sufficient income, accommodation and health insurance. Check the exact 2026 income threshold with the Ministry of Interior before applying, as the rules are still new.
Is there a special tax regime for expats in Bulgaria?
No. Bulgaria has no impatriate regime, no foreign-income exemption and no lump-sum tax. It doesn't need one: the general personal income tax is a flat 10% for everyone, with a flat 25% cost deduction for freelancers. Unlike temporary regimes in other countries, these rates have no end date.
How much tax does a freelancer pay in Bulgaria?
A freelancer under a free profession deducts 25% of fees as costs, then pays 10% income tax on the rest after social contributions. Social contributions run at about 27.8% of insured income, up to a monthly cap. On EUR 60,000 of fees, the total is often around 18% of gross income.
Do I pay tax in Bulgaria on foreign income?
Yes, if you are tax resident. Residents pay 10% on worldwide income, including foreign clients and foreign investments. Tax paid abroad can usually be credited under one of Bulgaria's double tax treaties. Non-residents only pay Bulgarian tax on Bulgarian-source income, such as local salary, rent or dividends from Bulgarian companies.
Is an EOOD better than freelancing in Bulgaria?
It depends. An EOOD pays 10% corporate tax and 5% on dividends, about 14.5% overall, but dividends carry no social contributions. A freelancer often pays less tax but more social contributions. Above the social security cap, the gap narrows. Admin costs and liability protection usually decide it.
Can I keep my tax residency elsewhere while living in Bulgaria?
Only if you really spend most of the year and keep your life elsewhere. Spend over 183 days in Bulgaria in any 12 months and you become resident. If two countries both claim you, the treaty tie-breaker looks at your permanent home, then your vital interests. Keep evidence of where you actually live.
Related guides
- Practical guide to obtaining your tax residency in Bulgaria
- Legal forms of business in Bulgaria
- Personal tax deductions and benefits in Bulgaria
- Bulgaria tax landscape overview
- Expat and digital nomad tax incentives in Romania
- Expat and digital nomad tax incentives in Hungary
- All country tax guides
Sources
- National Revenue Agency of Bulgaria (NRA)
- Ministry of Interior of Bulgaria – migration
- National Social Security Institute of Bulgaria
- Ministry of Finance of Bulgaria
- PwC Worldwide Tax Summaries – Bulgaria
This guide is general information, not personalised tax advice. See how we research and review.
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