People relocating to Bulgaria often treat three different things as one: the right to live here, being registered here, and being taxed here. They are separate. A residence permit settles immigration status; tax residence is decided by the Personal Income Taxes Act and, where two countries both claim you, by the double tax treaty between them.
The two Bulgarian tests
You are tax resident in Bulgaria if either of these applies:
Two further groups are resident under the same article: people with a permanent address in Bulgaria — unless their centre of vital interests is in another country — and people posted abroad by the Bulgarian state or Bulgarian employers, with their families. Time spent in Bulgaria only for study or medical treatment does not count towards the 183 days, and once you pass that mark you are resident for the whole calendar year in which it happens.
The centre-of-vital-interests test can make you resident with far fewer than 183 days, and a long stay will not help you if everything else still points to your old country.
What residence means for your income
| Tax resident | Not tax resident | |
|---|---|---|
| Income taxed in Bulgaria | Worldwide income | Only Bulgarian-source income |
| Standard rate | 10% flat | 10% flat (withholding on many types) |
| Dividends | 5% final tax | 5% final tax |
| Foreign tax already paid | Relieved by credit or exemption, depending on the treaty | — |
The flat 10% rate is the headline. The less obvious point is that residence brings your worldwide income into the Bulgarian return — salaries, rents, investment income from abroad — with relief for foreign tax depending on the treaty.
When two countries claim you
Leaving your old country rarely ends its interest in you automatically. Many tax systems keep treating former residents as resident while a home, family or business remains there. Where both states consider you resident, the treaty’s tie-breaker rules decide, usually in this order: permanent home, centre of vital interests, habitual abode, nationality, and finally agreement between the tax authorities.
That is why the practical arrangements of the move matter as much as the paperwork: where your family lives, whether you keep a home in your old country, where your business is managed from.
Evidence: the burden is on you
The National Revenue Agency does not keep a running count of your days. If you ask for a certificate of tax residence — which foreign banks, employers and tax offices often request — or if you are audited, you may need to prove where you were and why.
- Lease or title deed for your Bulgarian home
- Bulgarian bank accounts through which you actually live
- Health insurance and social security registration in Bulgaria
- Employment contract, company documents or client contracts tied to Bulgaria
- Travel records and boarding passes, kept for each tax year
- Deregistration documents from your previous country, where available
Common mistakes
- Assuming that a Bulgarian residence card alone makes you tax resident.
- Spending 184 days here while family, home and business stay abroad — and being claimed as resident by both countries.
- Forgetting that self-employed income and some salaries carry social security contributions on top of the 10% tax.
- Timing large disposals — selling a business or shares — before residence is clearly established.
Planning a move with a company? Our guide to setting up a Bulgarian limited company and our tax advisory practice cover the corporate side.
Questions clients ask
Does a Bulgarian residence permit make me tax resident?
No. Immigration status and tax residence are decided under different laws. You may hold a permit and still be tax resident elsewhere, or be tax resident here before your permit is issued.
I will spend about four months a year in Bulgaria. Can I still be resident?
Yes, if your centre of vital interests is in Bulgaria. With fewer than 183 days, residence depends on where your personal and economic life is concentrated, so documenting those ties is essential.
Can I get a certificate of tax residence for my old country?
Yes. The National Revenue Agency issues certificates of tax residence on application, usually together with evidence of your stay and ties. Foreign tax authorities and banks often ask for one.
This guide is general information about Bulgarian law as it stood on the date of publication. It is not legal advice for your specific case.