Moving to Bulgaria

The EU's overlooked tax champion

European UnionLev (BGN)Flat tax 10% income+corporateDividends 5%Sofia-55% vs Paris

Contents

Factsheet Why this country Visa & Residence Cost of living Taxation For entrepreneurs Healthcare Where to live Drawbacks FAQ

Factsheet: Bulgaria

Bulgaria is a Southeast European country of nearly 6.5 million people, an EU member since 2007 and part of the Schengen area since 2024. Often overshadowed by its Romanian or Balkan neighbors, it nevertheless offers one of the most attractive tax regimes on the continent: a 10% flat tax on income and corporate profits, dividends taxed at only 5%, bringing the total effective rate to roughly 14.5% — unmatched in Western Europe. Combined with one of the lowest costs of living in the EU (55% cheaper than Paris) and a secure European legal framework, Bulgaria is one of the most underestimated destinations for entrepreneurs, freelancers and retirees.

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Bulgaria

The EU's overlooked tax champion

Capital

Sofia

Official language

Bulgarian (Cyrillic alphabet)

Currency

Bulgarian Lev (BGN), 1 € ≈ 1.96 BGN (fixed rate)

Population

~6.5 million

Timezone

UTC+2 (UTC+3 in summer)

🇪🇺 European Union

Yes, since 2007 + Schengen since 2024

Digital nomad visa

EU free movement, no visa required

Cost of living (vs Paris)

~55% cheaper

Why choose Bulgaria?

Bulgaria offers a rare combination in Europe: the lowest tax rates in the EU, a secure Schengen framework, very low cost of living and modern digital infrastructure. Here are the six major advantages.

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10% flat tax on income and corporate profits — lowest in the EU
Whether you are an employee, freelancer or company director, the rate is the same: a fixed 10%, with no progressive brackets or ceiling. One of the lowest rates in Europe.

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Dividends at 5%, total burden ~14.5%
10% corporate tax on profits then 5% on dividends: the total tax burden on distributed profits is around 14.5%. A remarkable legal optimization for SME directors.

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EU + Schengen, full legal security
Free movement for EU citizens, European legal protection, border-free travel since Schengen accession in 2024. All within an EU member state.

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Cost of living -55% vs Paris
Rent, groceries, restaurants, transport: everything is on average 55% cheaper than in France. A budget of 800 to 1,500 EUR/month is enough to live comfortably in Sofia.

🌐

Excellent digital infrastructure
Fiber 1 Gbps from 12 EUR/month, 5G coverage in Sofia, dynamic coworking ecosystem (Campus X, soho SOFIA, Betahaus). Ideal for digital nomads and tech entrepreneurs.

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Fast and simple company creation
The EOOD (single-member LLC) can be set up in 3 to 5 business days with a capital of 2 BGN (~1 EUR). Accounting runs 100-200 EUR/month.

Visa & Residence

As an EU citizen, you benefit from free movement in Bulgaria without any visa. Settling down amounts to a simple registration with the local municipality.

EU free movement, municipal registration + EGN

EU nationals do not need any visa to settle in Bulgaria. The only formality is registering with the municipality (obshtina) of your area of residence, which issues a Bulgarian personal identification number (EGN, Edinen Grazhdanski Nomer), required to open a bank account, create a company or access public services. The procedure is simple, fast and inexpensive.

Duration

Permanent (5 years then permanent residence)

Min. income

Timeline

1 to 2 weeks

Target

~10 EUR

Cost of living

Bulgaria is one of the cheapest countries in the European Union. Sofia, the capital, remains affordable; other major cities like Varna, Plovdiv or Burgas are even more so. Here is a monthly estimate for a single expat.

Estimated monthly budget: 800 - 1,500 EUR/month

Expense	Monthly amount
1-bed apartment, Sofia city center	350 - 600 EUR/month
1-bed apartment, Varna or Plovdiv	250 - 450 EUR/month
Groceries	130 - 220 EUR/month
Dining out	50 - 100 EUR/month
Transport (metro, bus, tram)	20 - 30 EUR/month
Fiber internet 1 Gbps	12 - 20 EUR/month
International health insurance	30 - 70 EUR/month

📊 Taxation

Bulgaria offers one of the most competitive tax regimes in the European Union, with a simple system, rates among the lowest on the continent and a tax treaty with France.

Income flat tax

10% on all income (salaries, fees, rental income), fixed rate with no progressive brackets.

Corporate flat tax

10% on corporate profits, with no ceiling or brackets.

Dividends

5% only. Total income+corporate tax burden on distributed profits of approximately 14.5%.

Holding and EU parent-subsidiary directive

Intra-group dividends potentially exempt under the conditions of the European directive.

VAT

Standard rate 20%, reduced rate 9% (hospitality, restaurants, books).

France-Bulgaria tax treaty

Signed in 1987. Mechanisms to avoid double taxation.

🚀 For entrepreneurs

Bulgaria is a serious destination for European entrepreneurs and freelancers: fast company creation, competitive taxation and access to the European market. The two main legal forms are the EOOD and the OOD.

EOOD — single-member LLC

The equivalent of a single-member limited company. Symbolic minimum capital of 2 BGN (~1 EUR). Creation in 3 to 5 business days via the online commercial register.

OOD — multi-partner version

Multi-partner version of the EOOD, ideal for projects with several co-founders.

Corporate taxation

10% corporate tax on profits, 5% on dividends. The EOOD is the preferred structure for optimizing director compensation.

Professional banking

DSK Bank, UniCredit Bulbank and Postbank are the banks most used by foreign entrepreneurs. Professional account opening in 1 to 2 weeks with passport and articles of incorporation.

Accounting

Mandatory in Bulgaria, but accessible; local firms charge 100 to 200 EUR/month for a standard EOOD.

Residence permit via EOOD

Creating an EOOD grants the right to a Bulgarian residence permit for non-EU nationals (not applicable to EU citizens who benefit from free movement).

❤️ Healthcare

Bulgaria has a public healthcare system undergoing modernization and a quality private sector in Sofia, particularly in international clinics. Costs remain well below Western European standards.

Leading private hospitals in Sofia

Tokuda Hospital and Acibadem City Clinic, international standards, English-speaking staff.

Private specialist consultation

15 to 35 EUR, very affordable compared to Western Europe.

International private health insurance

Bulstrad, Allianz Bulgaria or Generali, budget 30 to 70 EUR/month for standard expat coverage.

European Health Insurance Card (EHIC)

Usable in Bulgaria for temporary stays as an EU citizen.

Bulgarian public system affiliation (NHIF)

EU citizens settling long-term can join the Bulgarian healthcare system, with modest monthly contributions.

Where to live

Bulgaria offers several attractive destinations for expats: a dynamic and affordable capital, seaside cities on the Black Sea coast and a ski resort popular with nomads in winter.

Sofia

The capital concentrates most of Bulgaria's economy, international companies and startup ecosystem. Metro, trams, museums, trendy restaurants: Sofia is a real European city at very affordable prices.

Best for: Entrepreneurs, digital nomads, professionals

Varna

The main Black Sea city, Varna is a mix of summer seaside resort and lively university town. Cost of living even lower than Sofia, beaches within walking distance and an active nightlife scene.

Best for: Digital nomads, beach lovers, students

Plovdiv

The country's second city, Plovdiv is one of the oldest continuously inhabited cities in Europe. Its historic center (Staria Grad), art galleries and cultural scene make it a very pleasant city, less stressful than Sofia.

Best for: Artists, freelancers, culture and history lovers

Burgas

The second seaside city after Varna, Burgas is a peaceful port hub with direct access to beaches and nature parks. Very low prices, quiet atmosphere.

Best for: Families, retirees, nature lovers

Bansko

A mountain ski resort famous among digital nomads in winter. Bansko welcomes an international community of remote workers every year, drawn by the slopes, coworking spaces and very low rents.

Best for: Digital nomads (winter), ski and mountain lovers

Drawbacks to know

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Corruption and rule of law
Bulgaria remains one of the EU countries most affected by institutional corruption: administrative procedures can be long and opaque.

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Cyrillic alphabet
Bulgarian uses the Cyrillic alphabet, which makes reading signs, forms and administrative documents challenging upon arrival.

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Infrastructure outside major cities
Roads, transport and public services lag behind in rural areas and some mid-sized towns.

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Winter and air pollution
Sofia regularly ranks among Europe's most polluted cities in winter, due to wood and coal heating.

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Demographic decline
Bulgaria has been losing population for decades; some neighborhoods and towns are depopulating, impacting local services.

Frequently asked questions

Can an EU citizen settle freely in Bulgaria? +

Yes, as an EU citizen you benefit from free movement. No visa is required. You simply need to register with the municipality of your place of residence within 3 months of arrival to obtain your EGN (Bulgarian identification number).

What legal form should I choose to create a company in Bulgaria? +

The EOOD (single-member LLC) is the most popular choice among foreign entrepreneurs: symbolic minimum capital (~1 EUR), creation in 3-5 days, 10% corporate tax, 5% dividends. For multi-partner projects, the OOD is the multi-person equivalent.

Does the France-Bulgaria tax treaty protect against double taxation? +

Yes. The treaty signed in 1987 between France and Bulgaria defines tax residency rules and mechanisms to avoid double taxation on income and dividends. If you are a Bulgarian tax resident, your Bulgarian-sourced income is taxed in Bulgaria.

Is Bulgaria part of the Eurozone? +

Not yet. Bulgaria uses the Bulgarian Lev (BGN), whose rate has been pegged to the euro since 1999 (1 EUR = 1.95583 BGN). Eurozone accession is planned but has been postponed in the short term. The fixed rate eliminates currency risk.

Is the quality of life really good in Bulgaria? +

Yes, especially in major cities. Sofia, Varna and Plovdiv offer modern infrastructure, a varied food scene, active nightlife and accessible nature (mountains, sea). Air quality in Sofia during winter remains a point of concern.

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