Bulgaria Tax Residency Guide 2026
Bulgaria determines tax residency based on the 183-day rule. Residents are taxed on worldwide income at the flat 10% IIT. Non-residents are taxed only on Bulgaria-source income. Bulgaria has over 70 double tax treaties.
Residency Criteria
An individual is considered a Bulgarian tax resident if they meet any of these conditions:
- Spend 183 days or more in Bulgaria in any 12-month period
- Have a permanent home in Bulgaria and their centre of vital interests is in Bulgaria
- Are present in Bulgaria for at least 183 days in a calendar year
Taxation of Residents
Bulgarian tax residents are subject to 10% IIT on their worldwide income. Foreign tax paid may be credited under domestic law or applicable DTTs. Bulgaria uses the ordinary credit method to avoid double taxation.
Taxation of Non-Residents
Non-residents are taxed only on Bulgaria-source income, including employment performed in Bulgaria, rental income from Bulgarian property, dividends from Bulgarian companies, and capital gains on Bulgarian assets.
EU Residence Rights
As an EU member state, Bulgaria grants EU citizens the right to reside without a visa for up to 3 months. EU citizens may register for long-term residence after 5 years of continuous legal residence. Non-EU nationals may obtain residence through work, study, family reunification, or investment.
Double Tax Treaties (DTTs)
Bulgaria has concluded over 70 double tax treaties, including with all EU Member States, the USA, Canada, China, India, UAE, Turkey, and many others. Treaties generally follow the OECD Model Convention. The tie-breaker clause determines residency based on permanent home, centre of vital interests, habitual abode, and nationality.
Tax Residency Certificate
Tax residents can obtain a Tax Residency Certificate (TRC) from the NRA to claim treaty benefits. The certificate confirms Bulgarian tax residence for a specific period.