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Digital Nomads in Bulgaria – Practical Tax Strategies for 2025
In this guide, we’ll explore clear, practical tax strategies for digital nomads and remote professionals living or working in Bulgaria in 2025.
Why Digital Nomads Choose Bulgaria
Bulgaria has become one of Europe’s most attractive destinations for digital nomads. The reasons are simple – a flat 10% income tax rate, affordable cost of living, and access to the European Union’s market. Combine that with stable internet infrastructure and a growing international community, and you have an ideal base for remote work.
Understanding Residency and Tax Residency
If you spend more than 183 days per year in Bulgaria or if your center of vital interests (home, family, business) is based here, you are considered a Bulgarian tax resident. This means your worldwide income becomes taxable in Bulgaria. However, if you only stay temporarily and remain tax resident elsewhere, you owe taxes only on Bulgarian-sourced income.
How Double Tax Treaties Protect You
Bulgaria has over 65 double tax treaties with countries across Europe, Asia, and North America. These agreements ensure you don’t pay taxes twice on the same income. To benefit, digital nomads must obtain a tax residency certificate from either Bulgaria or their home country and present it to relevant authorities when filing taxes.
Choosing the Right Business Structure
When it comes to taxation, the way you organize your work matters. Below are the two most common structures for digital nomads in Bulgaria:
| Structure Type | Tax Rate | Advantages |
|---|---|---|
| Freelancer / Self-Employed | 10% income tax (after 25% recognized expenses) | Simple registration, lower compliance costs |
| EOOD (Single-Member Limited Company) | 10% corporate tax + 5% dividend tax | Efficient for higher income, access to EU invoicing |
Social Security and Contributions
Every registered freelancer or company director must pay monthly social security contributions. These payments depend on income thresholds set by Bulgarian law. Contributions affect future benefits like healthcare, maternity, and pensions. Strategic planning helps balance contributions to avoid underpayment or unnecessary overpayment.
Aligning International Tax Rules
The key to success for any digital nomad is aligning Bulgarian tax rules with the regulations of their home country. Correctly applying double tax treaties can significantly reduce total liabilities and simplify reporting obligations. Professional accounting support is highly recommended to stay compliant while optimizing costs.
In 2025, Bulgaria remains a strong and sustainable option for digital nomads. Low taxes, European access, and straightforward business laws make it an excellent base for remote work. Whether you’re a freelancer or company owner, the right structure and expert advice can save you time, money, and stress.
ASB Accounting Services Bulgaria is here to guide you through every step — from tax registration and accounting to long-term financial planning. Contact our team today to build a compliant and efficient setup for your digital lifestyle.