bulgaria tax laws for foreginers
Bulgaria has a relatively simple and attractive tax system for foreigners who reside in the country. Here are some key points to keep in mind:
- Personal Income Tax – Foreign residents who earn income in Bulgaria are subject to a flat income tax rate of 10%. This is one of the lowest tax rates in Europe.
- Corporate Income Tax – Companies that are registered in Bulgaria are subject to a flat corporate income tax rate of 10%. This is also one of the lowest tax rates in Europe.
- Value Added Tax (VAT) – The standard VAT rate in Bulgaria is 20%. However, some goods and services are subject to reduced rates of 9% or 0%.
- Social Security Contributions – Employees in Bulgaria are required to make social security contributions, which are paid by both the employer and the employee. The total contribution rate is currently 18.8% of the employee’s salary.
- Double Taxation Agreements – Bulgaria has signed double taxation agreements with many countries around the world, which can help to reduce the tax burden for foreigners who have income in both Bulgaria and their home country.
- Tax Residency – Foreigners who reside in Bulgaria for more than 183 days in a year are considered tax residents and are subject to Bulgarian tax laws. However, there are also provisions for non-residents who earn income in Bulgaria.
Overall, Bulgaria offers a relatively simple and attractive tax system for foreigners who reside in the country. The low tax rates, combined with the country’s affordable cost of living and welcoming environment, make Bulgaria an attractive destination for digital nomads and other expats. However, it is always advisable to consult with a professional tax advisor to ensure compliance with Bulgarian tax laws.