Relocation intelligence

🇧🇬 Moving to Bulgaria: tax, residency and cost of living

Flat tax 10% — lowest in the EU

Thinking of moving to Bulgaria? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
10%
Corporate tax
10%
Capital gains
10%
Wealth tax
No
Inheritance tax
Yes
Cost of living index
38.5
Safety
6/10
Internet quality
8/10
Visa-free destinations
171
Foreigners can own property
Yes
Residency in
0 months
Citizenship in
0 years

Taxes

Bulgaria applies a flat 10% tax on personal income and corporate profits — the lowest rates in the EU. Dividends are taxed at 5%. No wealth tax, limited inheritance tax. Employee social security contributions approx. 13.78% (2025).

Residency and visas

EU citizens have the right to reside freely in Bulgaria. Non-EU nationals can obtain residency through employment, investment or long-term stay. Permanent residency available after 5 years of continuous legal residence. Naturalisation after 5 years (shorter for certain categories).

Property ownership

EU citizens may freely own property in Bulgaria. Non-EU nationals may own apartments but not land unless through a Bulgarian or EU legal entity. Commercial property is accessible to foreigners via a legal entity. No restrictions on rental income.

Cost of living and quality of life

Sofia offers a growing range of international amenities, affordable living costs (among the lowest in the EU) and fast broadband. Healthcare has improved but remains below the EU average. Safety index is reasonable; English is widely spoken in cities.

Passport and mobility

The Bulgarian passport grants visa-free access to approx. 171 destinations (Henley 2025). Bulgaria is an EU member; holders of other EU nationalities benefit from free movement. Bulgaria joined Schengen fully for air and sea borders in 2024; land borders integration ongoing.

Residency and visas

  • EU Free Movement Registration (Certificate of Registration) · Residency in 5 years
  • Long-Term Residence Permit (non-EU nationals) · Residency in 5 years
  • Residence Permit via Investment · €500,000 · Residency in 1 years
  • Residence Permit via Employment (Work Permit) · Residency in 5 years
  • Freelancer / Self-Employment Residence Permit · Residency in 5 years

Why people move to Bulgaria

  • 10% flat tax — lowest in the EU

    Both personal income tax and corporate tax are just 10%, with a 5% dividend withholding tax. This makes Bulgaria fiscally attractive for self-employed individuals, holding structures, and retirees with investment income.

  • EU membership with affordable living costs

    As an EU member, Bulgaria offers free movement of persons, goods, and capital, while living costs are among the EU's lowest. Rental prices in Sofia are 60–70% lower than in Amsterdam or Paris.

  • Simple EU residency procedure with path to citizenship

    EU citizens register simply at the local municipality; non-EU nationals have several visa routes. After 5 years of legal residence, permanent residency or naturalisation is available, granting access to the Bulgarian passport (171+ visa-free destinations).

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Sources

Other destinations

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