Bulgaria Tax Resident
Tax residency of Bulgaria
Bulgarian residence and Bulgarian ID card for EU citizens. Become a Bulgarian tax resident
Have you considered to become a tax resident of Bulgaria? Under the Bulgarian legislation you can claim Bulgarian tax residence if 1. You reside in Bulgaria for not less than 183 days annually or 2. You prove that the center of your vital interests is in Bulgaria. Under point 1, you will be considered a tax resident of Bulgaria only in the year when you have resided for 183 days. On the other hand, you are not required to satisfy the residence requirement if you justify that the center of your vital interests is in Bulgaria. To determine the center of vital interests, the tax office will consider the location of your employment/ self-employment, business, the country where you pay social contributions, residence permits, properties etc.
To ease your tax residency application under point 2 (vital interests), we may assist you to obtain a certificate for long-term residence and Bulgarian ID card for EU citizens. We will assist you during the entire procedure from preparing the set of application documents to receiving the Bulgarian ID card. The service includes the opening of a personal bank account and preparation of 12 months’ rent contract (useful also for the tax residence application). You are required to deposit at least approximately 2,000 € in your personal account as evidence of sufficient funds to support your stay in Bulgaria without relying on the Bulgarian social system. The funds can be withdrawn immediately after receiving a receipt for the deposition. The service fee is 500 € and we can ensure that the Bulgarian residence and Bulgarian ID card are issued within 3 working days. Thereafter, we may assist you to obtain a Bulgarian fiscal residence.
The National Revenue Agency certifies that a person is a resident of Bulgaria for tax purposes within the meaning of the Double Tax Convention and is subject to tax on his worldwide income in the Republic of Bulgaria.Become a tax resident of Bulgaria
To check the requirements to obtain a Bulgarian ID card and Bulgaria Fiscal Residence, please do not hesitate to contact us.
Bulgaria Tax Residency
Becoming a Bulgaria Tax Resident, you can benefit from the lowest tax rates in the entire European Union. Bulgaria applies a worldwide income tax system and residents are taxable on their worldwide income. The corporate tax in Bulgaria is only 10% flat rate compared to
33.9%+ in Belgium, 33.3%+ in France and 25%+ in Austria. Bulgaria also levies the lowest flat personal income tax rate of 10%.
If you are a non-EU national who would like to immigrate to Bulgaria, you may consider the registration of a trade representative office in Bulgaria and obtain a Type D visa and Bulgarian residence permit.
*EU nationals can reside in Bulgaria with a national ID card or passport for up to three months without registering in Bulgaria. If you would like to reside temporarily or permanently you have to register at the local Migration Police branch.
**The government authority responsible for the collection and administration of state taxes and obligatory social security contributions in Bulgaria is the National Revenue Agency.
Our dedicated team of professional accountants can help you to optimize your tax in Bulgaria.
Bulgaria Double Taxation treaties
Bulgaria has signed double taxation treaties with more than 60 countries in order to avoid double taxation for foreign investors. This measure offers tax relief for companies operating in multiple countries. Along with the double tax treaties, Bulgaria also signed exchange of information protocols in order to have a clear image of the legal entities requesting double taxation relief.
Bulgaria has signed double tax treaties with the below countries
The countries which concluded double taxation treaties with Bulgaria are: Albania, Algeria, Armenia, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Canada, China, Croatia, Cyprus, Czech Republic, Denmark, Egypt, Estonia, Finland, France, Georgia, Germany, Greece, Hungary, India, Indonesia, Iran, Ireland, Israel, Italy, Japan, Jordan, Kazakhstan, Democratic People’s Republic of Korea, the Republic of Korea, Kuwait, Latvia, Lebanon, Lithuania, Luxembourg, Macedonia, Malta, Morocco, Qatar, Moldova, Mongolia, Netherlands, Norway, Poland, Portugal, Romania, Russian Federation, Spain, Singapore, Slovakia, Slovenia, South Africa, Sweden, Switzerland, Syria, Thailand, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States of America, Uzbekistan, Vietnam, Yugoslavia, Zimbabwe.
Brief overview of Taxation in Bulgaria
- Corporate Income Tax Rate – 10%.
- Capital Gains Tax Rate – 10%
- Capital gains derived from sale of shares through the Bulgarian Stock market or a regulated market in an EU/EEA member state – 0%
- Tax on Dividends – 5%
- Dividends paid to legal entities which are tax residents in an EU/EEA member state – 0%
- Interest and Royalties – 10%
- VAT – 20% * Refund period is 2 months under certain conditions. If your annual company turnover is less than EUR 25,000 VAT registration in Bulgaria is not mandatory
- Personal Income Tax – 10%
- Mandatory Social Security
Employer: – 17.4%
Employee: – 12.9%
- Maximum monthly taxable base – BGN 2,600 (approx. EUR 1,350)
If you would like to obtain more details about Taxation in Bulgaria and becoming Bulgaria Tax Resident, please do not hesitate to contact us.