Have you ever thought about Bulgarian tax residency? Have you ever considered to become a Bulgarian Tax Resident?
Bulgaria applies a worldwide income tax system and residents are taxable on their worldwide income. Bulgaria levies a flat personal and corporate income tax rate of 10%. This could even be reduced to 5% and 0% by a professional legal support.
A person can be resident in more than one country at any given time, but can be domiciled in only one country.
Under the Bulgarian tax code, your domicile is decided under the 183-day rule. You’re considered to be a Bulgarian resident for taxation purposes if any of the followings applies:
your permanent home, i.e. family or principal residence, is in Bulgaria;
- you spend over 183 days in Bulgaria (i.e. more than half the year) in Bulgaria during any calendar year;
- you carry out paid professional activities or employment in Bulgaria, except when secondary to business activities conducted in another country;
- your center of economic interest, e.g. investments or business, is in Bulgaria.
The first mandatory step to becoming a Bulgarian fiscal resident is to register a company in Bulgaria (Ltd with 1 EUR capital).
Once the company is established the next step is obtain a residency certificate and Bulgarian ID card for EU nationals. The certificate for long-term residence is issued from the Ministry of Interior Affairs – Migration Police branch within 3 days of submission of application. The physical presence for applying is obligatory, but the card could be taken with power of attorney and send to you via courier.
Innovires tax lawyers will fully support and assist you to obtain a Bulgarian residency certificate and Bulgarian ID card (EU citizens). Later, we will apply several different methods to completely ensure your Bulgarian fiscal residence as renting, insurance and utility bills.
If you are a non-EU national who would like to immigrate to Bulgaria, our advice is to start with the registration of a trade representative office in Bulgaria and obtaining a Type D visa and Bulgarian residence permit. Do not hesitate to contact us for additional information of this program.
Innovires professional and experienced team will take care of the entire procedure of relocating to Bulgaria and change tax residency. Please feel free to contact us.