How to Declare Foreign Income in Bulgaria and What Tax You’ll Pay? 💼🌍
You live in Bulgaria but earn money from abroad — whether it’s from a job, rent, dividends, or something else? It’s important to understand how to declare this income and how much it will cost you. Here’s a clear summary in this article by T&G Consulting.
Who Has to Declare Foreign Income?
If you primarily live in Bulgaria — your home, family, or main place of residence is here, or you spend more than 183 days per year in the country — then for the Bulgarian tax authorities (NRA), you are considered a tax resident.
📌 That means: You must file an annual tax return for all your income — both Bulgarian and foreign.
What Counts as Foreign Income?
Anything that comes from abroad and enters your personal bank account is considered foreign income. For example:
- 💻 Salary or freelance fees from a foreign company
- 🏠 Rental income from property located abroad
- 📈 Dividends, interest, capital gains from investments
- 📜 Royalties, copyright income, commissions
- 💵 Income from selling assets or real estate abroad
What Tax Do You Pay on These Incomes?
In most cases, foreign income in Bulgaria is subject to a flat tax rate of 10%. But there are exceptions:
| Type of Income | Tax in Bulgaria |
|---|---|
| Salary, freelance fees | 10% |
| Rental income from abroad | 10% |
| Dividends | 5% (or 0% if exempt) |
| Income already taxed abroad | May not be taxed again |
📌 If you’ve already paid tax abroad, you may deduct that tax fully or partially in Bulgaria, provided a double taxation treaty exists between the two countries.
How to File the Tax Return?
- 🗓️ Deadline: By April 30 each year (for the previous tax year)
- 📝 Form: Annual personal tax return (Form 2001)
- 📎 Attachment: Complete Appendix 9 for foreign income
- 📂 Documents: Include contracts, bank statements, and tax payment certificates
Practical Tips to Avoid Trouble
- Keep all contracts, invoices, and bank records
- Get a tax payment certificate from the foreign tax authority if you paid tax abroad
- Work with an accountant familiar with international taxation
🔍 Want to make sure everything is correct — no mistakes, delays, or penalties? T&G Consulting is here to help.
What’s Next?
Now you know when and how to declare foreign income in Bulgaria. Your next step is to learn how to avoid double taxation and which exact documents you’ll need from abroad.
👋 For questions or assistance, don’t hesitate to contact us — T&G Consulting works with clients all over the world.
📞 File your return on time. Avoid fines and stress — contact us today and save time, money, and hassle with T&G Consulting.
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