Ultimate guide Expatriation in Bulgaria – Eastern Europe digital kingdom

Last Updated on 4 October 2025

Thinking about moving to Bulgaria? This beautiful Eastern European country draws people from across the globe with its low tax rates, affordable living costs, and amazing weather.

In this guide, we’ll take a closer look at everything you need to know before making the move to Bulgaria in 2025.

Why Bulgaria?

Population decline and government incentives

Bulgaria has been facing a negative population growth rate for over 20 years, which is a major concern for the government. To counteract this trend, the government has implemented tax measures to attract talents and entrepreneurs to the country.

Low tax rates

One of the main incentives for expatriates to move to Bulgaria is the low tax rate. A flat 10% tax rate is applied to both individuals and corporations. Moreover, there is no requirement to stay in the country to obtain tax residency, making it an attractive destination for digital nomads.

Language and currency

The main language spoken in Bulgaria is Bulgarian, and the local currency is the Bulgarian Lev (BGN).

Taxation Key points to remember:

10% corporate tax on Bulgarian companies The corporate tax rate in Bulgaria is 10%.

• 5% income tax on dividends Dividends received by a Bulgarian resident are subject to a 5% withholding tax.

• 10% income tax on national and global income All your Bulgarian and foreign-sourced income (except dividends) is subject to a 10% tax rate.

Tax residency

Unlike many other countries, it is not mandatory to stay in Bulgaria for 183 days to obtain tax residency. Tax residency can be obtained by proving a permanent address in Bulgaria, proving that the center of vital interests is in Bulgaria, or staying in the country for more than 183 days.

Administrative formalities for settling in Bulgaria

Although Bulgaria is part of the European Union, it has not joined the Schengen Agreement, so its long-term stay policy is different from some European countries.

After 90 days, you will need to apply for a long-term stay permit, which is valid for 1 year and renewable up to 5 years.

If you plan to reside in Bulgaria for more than 5 years, a permanent residency visa must be requested. This visa can be obtained after residing in Bulgaria uninterrupted for 5 years and has an indefinite validity period.

It is also possible to obtain this permanent residency visa through investment programs, bypassing the 5-year stay requirement.

Where to live in Bulgaria

When you’re choosing a city to live in Bulgaria, there are several important factors to consider. Let’s take a closer look at some of the key elements to help you make an informed decision.

• Cost of Living: The cost of living in Bulgaria varies depending on the city. Sofia, the capital, is the most expensive, while smaller cities like Plovdiv and Varna are more affordable.

• Job Opportunities: If you’re moving to Bulgaria for work, it’s important to choose a city with job opportunities in your field. Sofia has the most job opportunities, followed by Plovdiv and Varna.

• Safety: Bulgaria is generally a safe country, but some cities are safer than others. Burgas and Plovdiv are considered the safest cities in Bulgaria.

• Culture and Lifestyle: Each city in Bulgaria has its unique charm, and it’s essential to consider the culture and lifestyle of a city before making your choice. For example, Sofia is known for its nightlife, while Veliko Tarnovo is famous for its historical landmarks.

• Education: If you have children, it’s essential to consider the education system in the city you choose to live in. Sofia has the best schools in Bulgaria, followed by Plovdiv and Varna.

Keep these factors in mind when choosing a city to live in Bulgaria, and you’re sure to find the perfect place to call home!

Sofia: The best city for expatriation

Sofia, the capital of Bulgaria, is a lively city. If you enjoy going out, Sofia boasts an animated nightlife.

In addition to its nightlife, the capital offers a total immersion into Bulgarian culture with magnificent architecture and superb museums.

Even without a car, it is easy to get around Sofia, both with public transport and taxis.

Cost of living Compared to Paris, life in Sofia is generally 50% less expensive. Your cost of living will depend on your lifestyle.

• City-center studio: Between €350 and €700 per month
• Hotel night: €35/night
• Basic meal: €8/person
• Beer (0.5L): €4
• Coworking: €150/month
• Internet subscription: €25/month

Plovdiv

Plovdiv is the second-largest city in Bulgaria and is known for its rich history, beautiful architecture, and friendly population. It has a low cost of living, a high quality of life, and a good job market. It is also one of the oldest cities in Europe, with a history dating back to 4000 BC.

Cost of Living

Plovdiv has a lower cost of living than Sofia, which makes it an attractive city for expats and locals alike. Rent prices are affordable, and food and entertainment are reasonably priced.

Opening a bank account in Bulgaria

There are 3 interesting banks for expats in Bulgaria:

• United Bulgarian Bank
• UniCredit Bulbank
• DSK Bank

Banks in Bulgaria are often a challenge for expats.

When it comes to banking in Bulgaria, the fees charged by local banks can be quite high, making it beneficial to open a multi-currency account with TransferWise.

TransferWise offers a free multi-currency account, a free MasterCard debit card, and fast and reliable international transfers.

Climate in Bulgaria

The climate in Bulgaria is excellent, with pleasant temperatures throughout the year.

During summer, temperatures can easily reach 30°C, while for the rest of the year, they generally range between 15°C and 20°C.

The months from December to February tend to be colder, but temperatures rarely drop below 0°C (32°F).

Now that you’re more familiar with what Bulgaria has to offer, it’s easy to see why it’s becoming a popular destination for expats and digital nomads.

From its attractive tax rates and simple tax residency requirements to the lively city of Sofia and the pleasant climate, Bulgaria offers an excellent quality of life for those looking to start a new chapter abroad.

So, pack your bags and start your adventure in this beautiful and welcoming country!