Eastern Europe · Europe

Bulgaria

82excellent

Overall Score

Bulgaria is a Eastern Europe jurisdiction. with a standard worldwide income tax regime applicable to tax residents. Corporate profits are taxed at 10%. The jurisdiction offers a digital nomad visa and golden visa programme for qualifying individuals.

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Corporate Tax

10%

Personal Income Tax

10%

Capital Gains

10%

VAT / GST

20%

Overview

Key Data

Taxation

Personal Income Tax (max)10%

Personal Income Tax (min)10%

Corporate Tax Rate10%

Capital Gains Tax10%

VAT / GST20%

Dividend Tax Rate5%

Withholding Tax10%

Territorial TaxationNo

Foreign Income Exempt—

Remittance-Based Tax—

CFC RulesNo

Tax Residency Days183 days/year

Tax Treaties—

Residency & Visa

Digital Nomad VisaYes

Golden VisaYes

Retirement VisaNo

Investment VisaYes

EU MemberYes

Schengen AreaYes

EU PassportYes

Min. Days Required / Year—

Min. Monthly Income—

Min. Investment (residency)—

Citizenship Path—

Setup Difficulty—

Business & Cost of Living

Cost of Living Index38/100

Avg. Monthly Cost—

Company Formation Time—

Formation Cost (est.)—

Annual Compliance Cost—

Free Zone AvailableNo

Banking Easegood

Internet Qualitygood

Compliance & Reputation

FATF Statuscompliant

EU Blacklist Statusnot_listed

OECD Compliance—

CRS Participant—

FATCA Compliant—

BEPS Participant—

Treaty Network Quality—

Personal Tax Residency

Tax residency in Bulgaria is generally triggered by physical presence exceeding 183 days in a calendar year. Foreign income treatment: unknown. No statutory CFC rules apply, which can facilitate the use of foreign holding structures without automatic income attribution.

Flat 10% income and corporate tax — lowest in EU. Only 5% dividend tax. EU member with Schengen access. Low cost of living. Sofia a growing startup hub.

Company Setup & Business Taxation

The standard corporate income tax rate is 10%. The administrative process is considered straightforward, with minimal bureaucratic friction.

Banking & Financial Access

Account opening in Bulgaria can be challenging for foreign nationals or non-resident businesses, and enhanced due diligence is common practice. Internet connectivity is generally good, with consistent broadband availability in business districts and main population centres.

Compliance & International Reputation

Bulgaria is a member of the Financial Action Task Force (FATF) and meets its anti-money-laundering standards. EU tax blacklist status: not_listed. Structures involving this jurisdiction may attract additional scrutiny or reporting obligations under EU member state rules.

Who This Jurisdiction Works Best For

Based on our scoring model, Bulgaria ranks highest for High Net Worth Individual and Freelancer. It offers an excellent proposition for high net worth individual (score: 84/100). It offers an excellent proposition for freelancer (score: 82/100).

Legal Notice

The information on this page is for general informational purposes only and does not constitute legal, tax, or financial advice. Tax laws and residency rules change frequently and vary significantly by individual circumstances. Always consult a qualified professional licensed in the relevant jurisdictions before making any decisions.