Bulgaria's 10% flat tax: a complete residency guide

What the 10% actually covers

Bulgaria charges a flat 10% on personal income for tax residents, and 10% corporate income tax on company profit. There is no progressive banding, which makes the position easy to model once your residency is settled.

Dividends from a Bulgarian company are taxed separately at a low rate. The combined effect of salary, dividends and corporate tax is usually far below the headline burden in higher-tax countries, but the right mix depends on how you earn.

Who can use it

The 10% rate is available to Bulgarian tax residents. Becoming tax resident is not the same as getting a residence permit; it is decided under tax law and looks at time in the country, your permanent home and your centre of vital interests.

In practice this suits people who are genuinely relocating their base to Bulgaria: remote business owners, founders, consultants and internationally mobile earners who can move where they live and work.

Residency comes first

You generally establish the right to live in Bulgaria, set up a local footprint, and then confirm your tax residency position. Our residency service handles the route, documents and registrations; our tax strategy service confirms the tax side.

Skipping the tax residency review is the most common mistake. A residence permit alone does not move your tax home.

Leaving your old system properly

Moving to Bulgaria does not automatically end your previous tax residence. The country you leave may still look at your home, family, work and business ties, and some countries apply exit rules.

This is why the 183-day count is only part of the picture. We cover this in the 183-day rule explained.

How to start

The sensible first step is a review of how you earn and where you are leaving, so the residency and tax pieces are designed together rather than fixed after the fact.