Digital Nomads in Bulgaria – Smart Tax Strategies for 2025 🌍
In 2025, Bulgaria stands out as one of the most attractive European destinations for digital nomads. With a flat 10% income tax rate, low cost of living, and EU market access, it’s a perfect base for remote professionals. Add stable internet and a vibrant community — and you get the ideal combination of freedom and opportunity. 💻
Understanding Tax Residency
If you stay in Bulgaria for more than 183 days or if your home and business are based here, you’re a Bulgarian tax resident. That means your worldwide income becomes taxable in Bulgaria. Non-residents, however, pay tax only on income generated within the country.
Double Tax Treaties
Bulgaria has over 65 active double tax treaties that protect individuals from double taxation. To benefit, obtain a tax residency certificate from Bulgaria or your home country and present it when filing taxes.
Choosing the Right Business Structure
- Freelancer (Self-Employed) – 10% income tax after 25% recognized expenses. ✅
- EOOD (Single-Member Limited Company) – 10% corporate + 5% dividend tax, ideal for higher income and EU invoicing.
Freelancer vs EOOD – Tax Structure Comparison
| Criteria | Freelancer | EOOD |
|---|---|---|
| Tax Rate | 10% after 25% recognized expenses | 10% corporate + 5% dividend tax |
| Social Contributions | Monthly based on income | Mandatory for director and company |
| Setup Complexity | Simple registration | Requires legal setup and accountant |
| Best For | Freelancers with moderate income | Professionals with higher turnover |
| Key Advantage | Low admin and flexibility | EU invoicing and control |
Social Security and Contributions
All freelancers and company directors must pay monthly social contributions. These payments ensure healthcare, pension, and social coverage. Strategic planning helps maintain compliance without unnecessary costs.
Aligning International Tax Rules
Coordinating Bulgarian and foreign tax systems can significantly reduce liabilities. T&G Consulting provides expert tax registration, accounting, and long-term financial guidance for digital nomads in Bulgaria.
👉 Bulgaria in 2025 remains an affordable, secure, and EU-integrated base for digital nomads. With T&G Consulting by your side, you can focus on growing your business while we handle your taxes efficiently. 🌟
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