Tax residency in Bulgaria

There is nothing impossible about becoming a tax resident of Bulgaria. You only need to meet a number of conditions. This status allows you to pay a low income tax. In addition, residents can open accounts with Bulgarian banks relatively easily and enjoy personal data protection under the relevant European law. It is also worth informing the foreign banks where you hold accounts about your status as a Bulgarian tax resident. In that case financial institutions will automatically exchange banking information with Bulgaria specifically, and not with some other state.

What does it take to become a Bulgarian tax resident?

A foreign national needs to meet at least one of the following conditions:

• Having a permanent address in Bulgaria. Such an address appears after obtaining a residence permit in the country (permanent or long-term, i.e. a permanent residence permit or EU long-term resident status). Foreign nationals with a temporary residence permit can also obtain one, but no earlier than 183 days after receiving their residence permit.
• Staying in Bulgaria for at least 183 days a year. For citizens of countries outside the European Union, the period is counted from the moment the residence permit is obtained.
• Having a “centre of vital interests” in Bulgaria. This term denotes the place where a person has close personal and/or economic ties. For example, the centre of vital interests is in Bulgaria if the person’s family lives here, or they have property and/or a business here.

In practice, to obtain a tax residency certificate you need to have a residence permit (long-term, EU long-term or permanent) and an individual number. For holders of a long-term residence permit this is the personal number of a foreigner (LNCh). Once this number has been obtained, the foreign national can receive the certificate after 183 days. For those with permanent (EU long-term) residence in Bulgaria, this is the EGN (unified civil number). Once it has been obtained, you can apply for confirmation of tax residency straight away.

How do you obtain the certificate?

You must file the relevant application with an office of the National Revenue Agency (NAP), the tax authority. This is done in person or by power of attorney. It is better to choose the NAP office at your registered address, but applying to another office is also allowed. If a form from a foreign tax authority needs to be completed, this form is attached to the application together with a translation into Bulgarian.

Issuing the certificate at the office at your registered address takes a week. If the documents were filed at a different NAP office, the period will be twice as long. The certificate can be collected at the NAP office in person or by an authorised representative; sending the document by post is also possible.