Bulgaria offers one of Europe's lowest flat tax rates — 10% on income, 10% on corporate profit, 5% on dividends. Whether you're relocating from the USA, Germany, France, the Netherlands, the UK or anywhere else, the numbers are striking. Here's the complete picture.
The Tax Case Across Countries
| Country | Top Income Tax | Corp. Tax | Dividend Tax |
|---|---|---|---|
| 🇺🇸 USA (federal + state) | 37% + up to 13% | 21% federal | Up to 23.8% |
| 🇩🇪 Germany | 45% + solidarity | 30% (incl. trade) | 25% + solidarity |
| 🇫🇷 France | 45% + social charges | 25% | 30% (PFU) |
| 🇳🇱 Netherlands | 49.5% | 25.8% | 31% (box 2) |
| 🇬🇧 United Kingdom | 45% | 25% | 33.75% |
| 🇧🇬 Bulgaria | 10% flat | 10% flat | 5% |
For an entrepreneur earning €150,000 annually, the difference between paying German or Dutch rates and Bulgarian rates can easily exceed €40,000–€55,000 per year — before accounting for social contributions and wealth taxes.
To benefit from Bulgarian tax rates you must become a Bulgarian tax resident (183+ days per year) and properly exit your home country's tax net. This requires planning — do not assume it happens automatically.
From the USA
American citizens face a unique challenge: the US taxes citizens on worldwide income regardless of residence. However, the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) can significantly reduce US tax liability for Americans based in Bulgaria. Many US digital entrepreneurs and remote workers use the combination of Bulgarian residency, a local LLC structure, and FEIE to dramatically reduce their overall tax burden. It's essential to work with a cross-border tax specialist familiar with both US and Bulgarian law.
From the EU (Germany, France, Netherlands, etc.)
EU citizens have the simplest path to Bulgarian residency — you have the right to live and work in any EU member state. Registering as a Bulgarian resident requires proof of accommodation, health insurance, and sufficient funds (or employment/business). The bureaucratic process is lighter than for non-EU nationals, and once registered, you pay Bulgarian rates on Bulgarian-sourced income. For EU residents who transition their business or freelance activity to Bulgaria, the savings compared to German, French or Dutch tax rates are substantial.
EU exit taxation rules. Germany, France, and other EU countries have exit tax provisions that may apply when you transfer assets or business interests out of the country. Seek advice before moving.
From the UK (Post-Brexit)
UK nationals are now third-country citizens relative to the EU, meaning they need to apply for a residence permit to live in Bulgaria long-term (the same process as Americans or Australians). In April 2025 the UK abolished its non-dom tax status and raised corporation tax to 25%. For British entrepreneurs, Bulgaria's 10% flat tax has become significantly more attractive. The most popular route is registering a company (EOOD, Bulgarian LLC) and spending 183+ days per year in Bulgaria to establish tax residency.
Your Residency Routes
Register a company (EOOD, Bulgarian LLC)
Register a company in 2–4 weeks. Serve clients globally. After 5 years, apply for permanent residency. Most popular route for entrepreneurs from any country.
Financially independent person
Passive income (pension, investments, rental income) of ~€700+/month. Simple residency route — no business required. Cannot officially work in Bulgaria on this status.
Digital Nomad Visa (D-type)
Earn €31,000+ annually from non-Bulgarian clients? This 1+1 year permit is a fast entry point. Available to non-EU nationals. Does not directly lead to permanent residency.
EU Freedom of Movement (EU citizens only)
EU nationals register at the local migration office, show accommodation and financial means. No separate visa. After 5 years: permanent residency.
Schengen Access
Bulgaria joined Schengen in January 2025. With Bulgarian residency, you move freely across all 29 Schengen countries — no border checks, no additional visas for Germany, France, Italy, Spain. For US and UK nationals without Bulgarian residency, the 90/180-day Schengen rule applies. Bulgarian residency removes this restriction entirely.
Property, Banking, Healthcare
EU citizens can buy property in Bulgaria with no restrictions. Non-EU nationals (US, UK, etc.) can buy apartments freely; land requires either a Bulgarian company or a specific permit. Sofia apartments range from €80,000 for a compact 1-bed to €200,000+ in premium locations. The banking system is stable — several international banks operate in Bulgaria (UniCredit, Société Générale). Healthcare is a mix of public (low-cost via the NHIF after registration) and private (very affordable by Western standards: private clinic consultation €30–€80).
Considering a move? Our team at MoveToBulgaria assists people from the USA, UK, Germany, France, Netherlands and beyond with company formation, residency applications, and the practical side of settling in Bulgaria. Ask us about company formation or your residency application.
