Bulgaria’s Tax System for High-Net-Worth Individuals and Expats

TL;DR

• Flat 10% tax on personal and corporate income, among the EU’s lowest; dividends to individuals taxed at 5% (PwC; CMS).
• No personal wealth tax; inheritance tax applies only to certain heirs and above thresholds (CMS).
• 70+ double-tax treaties help avoid double taxation; Bulgaria introduced a Digital Nomad visa in 2025 and joined Schengen in 2025 (Remote Work Europe).
• Euro adoption slated for 1 January 2026 at a fixed 1 EUR = 1.95583 BGN; SAF‑T reporting to phase in from 2026 (RegFollower; EY).

Last updated 2025-11-01

Bulgaria’s tax system is a standout for high-net-worth individuals (HNWIs) and expats who want EU access with low, predictable taxes. With a 10% flat tax on personal and corporate income and a 5% tax on dividends, the overall effective rate can be hard to beat—especially with no wealth tax and a growing treaty network.

Tax Residency and Immigration Programs

Tax residency drives your Bulgarian tax exposure. Individuals are generally tax resident if they spend over 183 days in Bulgaria in any 12‑month period or have their “centre of vital interests” (strongest economic and personal ties) in Bulgaria; residents are taxed on worldwide income, while non‑residents are taxed only on Bulgarian‑source income (PwC). Corporate residency typically follows incorporation or registered office in Bulgaria (PwC).

For mobility‑minded professionals, a new Digital Nomad visa launched in mid‑2025 provides a clearer pathway for non‑EU remote workers to live in Bulgaria and potentially become tax resident under the statutory tests (Remote Work Europe). Travel has also become easier after Bulgaria’s entry into the Schengen Area on 1 January 2025 (Remote Work Europe).

Bulgaria’s treaty network helps prevent double taxation: it has signed 70+ double‑tax treaties (Remote Work Europe). If you plan a base, also consider how residency and citizenship strategies interact with your broader relocation plan; see our guidance on residence permits, visas and long‑term citizenship pathways.

Flat Personal and Corporate Tax Rates

Bulgaria applies a flat 10% personal income tax to most categories of individual income (PwC). From 2025, a child tax relief allows a deduction of BGN 6,000 per dependent child from the annual tax base, subject to statutory conditions (PwC).

Corporate income tax is also a flat 10% on taxable profits (CMS). For entrepreneurs consolidating assets or building operating platforms, the low rate, EU market access, and treaty network are compelling. If you are weighing whether to found locally, compare structures and timing with our overview of business registration and cross‑border investment planning.

Key rates at a glance

Taxation of Investment and Foreign Income

Dividends paid to individuals are generally taxed at 5% in Bulgaria (CMS). Dividends paid by a Bulgarian company to EU/EEA resident legal entities can be exempt from withholding tax, and dividends between Bulgarian resident companies are typically exempt (CMS).

Interest payments to non‑residents are usually subject to 10% withholding tax (treaties may reduce this), while Bulgarian‑resident companies generally do not withhold tax on domestic interest paid to other resident companies (CMS).

Capital gains are generally taxed at 10% for individuals and companies, but gains from the sale of listed shares on Bulgarian and EU/EEA stock exchanges are typically exempt, supporting portfolio strategies focused on listed equities (CMS).

Residents are taxed on worldwide income; non‑residents on Bulgaria‑source income only. Double‑tax relief is available via Bulgaria’s extensive treaty network and under unilateral credit mechanisms where applicable (PwC; Remote Work Europe).

Expatriate Incentives and Reliefs

Key features that appeal to expats and HNWIs include:

• Uniform 10% flat personal tax and 5% dividend tax to individuals, which often lower the blended effective rate on investment income (PwC; CMS).
• No personal net wealth tax, facilitating long‑term asset accumulation (CMS).
• Extensive double‑tax treaty network (70+) reducing exposure to double taxation on foreign income (Remote Work Europe).
• New Digital Nomad visa (2025) enabling non‑EU remote earners to base in Bulgaria and potentially qualify as tax residents if they meet statutory tests (Remote Work Europe).
• Family relief: BGN 6,000 annual deduction per child (from 2025) subject to conditions (PwC).

If real estate is part of your plan, also review structuring and cost considerations in our real estate guidance and coordinate with overall tax planning.

Wealth, Property, and Inheritance Taxes

Wealth tax. Bulgaria does not levy a personal net wealth tax (CMS).

Inheritance tax. Spouses and direct descendants are exempt. For siblings and their children, tax generally ranges from 0.4% to 0.8% on the portion of inheritance exceeding BGN 250,000; other heirs typically face 3.3% to 6.6% above municipal thresholds as determined by local rules (CMS).

Property taxes. Municipal annual property tax commonly ranges between 0.15% and 0.30% of the tax value, with a separate property transfer tax usually around 2% plus registration and notary fees, all depending on the municipality (CMS).

Recent Tax and Policy Updates

• Bulgaria joined Schengen on 1 January 2025, easing travel and regional mobility for many expats (Remote Work Europe).
• A dedicated Digital Nomad visa was introduced in mid‑2025 to attract non‑EU remote workers (Remote Work Europe).
• Euro adoption is planned for 1 January 2026 at a fixed conversion rate of 1 EUR = 1.95583 BGN (following ERM II parity), providing currency stability for euro‑denominated investors (RegFollower).
• Standard Audit File for Tax (SAF‑T): the 2025 State Budget Act introduces SAF‑T, with monthly reporting for large enterprises from January 2026 (phased to all companies by 2030). Prepare systems and data quality accordingly (RegFollower; EY).
• VAT registration threshold: increased to BGN 166,000 from 1 January 2025, easing compliance for smaller operators (RegFollower).

How to Apply

For HNWIs and expats planning to base in Bulgaria, here is a practical sequence to get compliant:

1. Select the right immigration route (e.g., employment, business setup, family grounds, or the 2025 Digital Nomad visa for remote workers) and obtain lawful stay/residence status (Remote Work Europe). For general residency process planning, see our guide to residence permits and visas.
2. Establish tax residency by spending over 183 days in a 12‑month period or by demonstrating your centre of vital interests in Bulgaria, then register for tax purposes as required (PwC).
3. If operating a business, choose a structure and register locally; the 10% corporate tax and EU market access make Bulgaria attractive for operating entities and holding functions (CMS). See comparative considerations in our business registration overview.
4. Review treaty positions and claim double‑tax relief as applicable; Bulgaria has 70+ double‑tax treaties to mitigate double taxation on foreign income (Remote Work Europe).
5. Prepare for compliance cycles (annual returns, VAT if applicable). If you’re a large enterprise, plan for SAF‑T data and systems readiness before January 2026 (EY).

Is Bulgaria a fit for your private wealth plan?

• You prioritize low, predictable tax on income and dividends (10% and 5%).
• You do not need a territorial system; you can plan with worldwide taxation plus treaty relief.
• You value EU/Schengen mobility and euro stability from 2026.
• You plan to hold listed securities or dividend‑paying assets and potentially own EU real estate.

FAQs

Conclusion

Bulgaria’s tax system for high‑net‑worth individuals and expats combines EU stability with simplicity: a 10% flat income tax, 5% dividend tax for individuals, no wealth tax, treaty protection on cross‑border income, and clear paths to residence and tax residency. With Schengen integration and euro adoption ahead, it is increasingly attractive for private clients seeking efficient EU access and predictable rules (PwC; CMS; Remote Work Europe). For a tailored structure and step‑by‑step implementation, contact us.

Bulgaria Tax for HNWIs & Expats: Complete Guide (2025)