📊 Tax & VAT

Tax Residency in Bulgaria: the 183-Day Rule, Centre of Vital Interests and What Owning a Company Changes

You are a Bulgarian tax resident if you meet any one of four tests in Art. 4 of the Personal Income Tax Act: a permanent address in Bulgaria, more than 183 days in the country in any 12-month period, being posted abroad by the Bulgarian state or a Bulgarian company, or having your centre of vital interests here. Owning or managing a Bulgarian company is not one of the tests. Residents pay Bulgaria’s flat 10% tax on worldwide income; non-residents only on Bulgarian-source income.

Current as of October 2026. Based on Art. 4–7 of the Personal Income Tax Act and Art. 3 of the Corporate Income Tax Act. Residence under a double tax treaty can differ from residence under domestic law, and your other country applies its own rules. General information, not tax advice.

The four tests

Test (Art. 4(1))What it means in practice
Permanent address in BulgariaAn address entered in the Bulgarian civil register, not simply a lease or a company’s registered office
More than 183 days in any 12-month periodPhysical presence, counted day by day
Posted abroad by the Bulgarian state or a Bulgarian enterpriseCovers the posted person and family members
Centre of vital interests in BulgariaYour personal and economic ties are closest to Bulgaria

Citizenship plays no role. There is also one carve-out: a person with a permanent address in Bulgaria whose centre of vital interests is not in the country is not a resident (Art. 4(5)).

How the 183 days are counted

  • The window is any 12 months, not the calendar year. Days from the end of one year and the start of the next add up.
  • Arrival and departure days each count as a full day. A two-night trip is three days.
  • Time spent only for study or medical treatment does not count.

You become resident for the calendar year in which your stay passes 183 days, not for the year you arrived.

Worked example. You land in Sofia on 1 September 2026 and stay without interruption. By 31 December you have 122 days in the country. Day 184 falls on 3 March 2027. Under this test you are a Bulgarian tax resident for 2027, not for 2026; your 2027 worldwide income falls within Bulgarian tax and the annual return is due by 30 April 2028. If you instead leave on 20 February 2027 and stay away, you never pass 183 days and the test is not met.

Keep boarding passes and accommodation contracts as proof of your days; inside Schengen there are no passport stamps to rely on.

Centre of vital interests: no day count needed

Your centre of vital interests is in Bulgaria when your interests are closely connected with the country. Art. 4(4) names what may be weighed: your family, your property, the place from which you work or run a business, and the place from which you manage your property. No single factor decides it.

  • Spouse and children live in Varna in the family home, and you fly out for contract work three weeks a month: you can be resident with far fewer than 183 days.
  • You rent a flat in Sofia four months a year while family, home and main clients are elsewhere: the centre is likely abroad, and the day count becomes the test that matters.

This is a judgement on facts, so it is the test most often disputed.

Does owning a Bulgarian company make you tax resident?

No. Being the sole owner or registered manager of an EOOD is not among the tests, and neither role requires presence in the country. A founder who lives abroad and manages the company remotely stays a non-resident individual; the setup is covered in how to open a company in Bulgaria as a non-resident. Keep three things apart:

The company is resident; you are not. A company incorporated under Bulgarian law is a Bulgarian tax resident and pays the 10% corporate tax on its worldwide profit, wherever its owner lives.

Your personal tax follows your own residence. As a non-resident you pay Bulgarian tax only on Bulgarian-source income. Dividends from your EOOD are taxed at 5% at source, and your home country may tax them again subject to the treaty; see Bulgarian dividend tax.

Your home country may look at the company too. Many countries treat a foreign company as their own tax resident if it is effectively managed from their territory, or apply controlled-foreign-company rules. Bulgarian law cannot switch those rules off, so take advice there before the first profitable year.

What changes once you are resident

Bulgarian tax residentNon-resident
Income taxed in BulgariaWorldwide (Art. 6)Bulgarian-source only (Art. 7)
Annual returnDue by 30 April of the following yearOnly where Bulgarian-source income requires it
Foreign salary, pension, rent, gainsIn scope, subject to treaty reliefOut of scope

Social security is decided separately. Within the EU it follows the coordination rules on where you work and is documented with an A1 certificate, not a tax residence certificate.

If two countries both claim you, the double tax treaty between them breaks the tie, usually by permanent home, then centre of vital interests, then habitual abode, then nationality. Read the specific treaty: 184 days in Bulgaria do not by themselves end residence elsewhere.

The Bulgarian tax residence certificate

Foreign banks, brokers and tax offices will ask for proof. The National Revenue Agency issues a certificate of tax residence on request:

  • It covers a specific calendar year.
  • You apply on the NRA’s request form at the NRA office for your address, or through the NRA e-services portal with a PIK code or a qualified electronic signature (see filing from abroad with an e-signature, PIK or proxy).
  • Turnaround is usually about a week, longer when the NRA asks for additional evidence.
  • The NRA certifies a status you already have, so expect to show the facts behind it: days in the country, a lease or title deed, family and work ties.

A residence permit or EU registration certificate is an immigration document. It supports the facts but does not prove tax residence.

FAQ

How many days make you a tax resident in Bulgaria? More than 183 days in any 12-month period. Arrival and departure days count, and you are resident for the year in which the total passes 183.

Am I a Bulgarian tax resident if I own a Bulgarian company? Not for that reason. Ownership and management of a company are not residence tests; only the four tests in Art. 4 count.

Is a Bulgarian residence card proof of tax residency? No. Tax residence is proved with a certificate from the National Revenue Agency for the specific year.


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