Working remotely in Bulgaria

mikeade1990 Member

Member since 02 April 2022

mikeade1990Member02 April 2022 21:03:24

Hi guys,

I was wondering how taxes work in Bulgaria as an EU citizen. I'm thinking of living in Bulgaria for a year whilst retaining my Job in the UK.

I would be paying taxes in the UK. At which point during my stay in Bulgaria am I liable to paying tax. From what I've read I'll need to pay income tax of 10%. Are there any other tax related expenses?

I'd appreciate your help thanks

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janemulberry ViP

Member since 23 January 2021

janemulberryViP04 April 2022 20:51:56

1986

Mike, I'm not sure what the answer would be post-Brexit. Pre-Brexit, you couldn't be double taxed, but I'm not sure now what sort of tax treaty the UK has with the EU for this situation.

As well as 10% income tax, Bulgaria also has the equivalent of national insurance which can be quite expensive for someone of working age.

gwynj Bulgaria Expert

Member since 30 June 2020

gwynjBulgaria Expert05 April 2022 06:47:32

2572

In most countries (including Bulgaria) the threshold for tax residence is the "physical presence test" of 183 days (over half the year). So the easiest solution is to be a remote worker, but keep your stays in Bulgaria (and elsewhere, if you're gonna be remote for a year) below this.

Alternatively, as you are not legally a Bulgarian resident, and you don't have your ID/Tax number, you might choose to fly under the radar and ignore the issue. This is not the official advice, and definitely not a long-term option. But as you'll be paying tax, at a higher rate, in another country, I think this is probably OK for a few months. As mentioned by @janemulberry there is a DTA (double taxation agreement) between Bulgaria and UK, which should mean that officially you wouldn't owe any tax in Bulgaria. You can read it here:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/515450/UK_Bulgaria_DTC.pdf

If you're not here for an extended vacation, but considering Bulgaria for long-term residence, then getting your permit is quite easy (proof of address, proof of funds/work contract, proof of health insurance). Usually, as an EU citizen, you should do this if you want to stay more than 90 days. Then you could consider getting your UK employer to pay you gross, as an independent contractor, and you pay 10% income tax (and the social security contributions also mentioned) here in Bulgaria.

Bulgaria is a great place to be a digital nomad or remote worker because you can enjoy a high foreign salary (compared with the Bulgarian official minimum wage of 360 euros), together with Bulgaria's low taxation and low cost of living. Internet connectivity is very good here, I have 100 GB fibre at both the house and flat (the flat could be 500 GB for a bit extra) for 10 euros per month.

janemulberry ViP

Member since 23 January 2021

janemulberryViP07 April 2022 19:35:13

1986

Looks like Gwyn gave a very comprehensive reply. I just found the EU guidelines by chance: https://europa.eu/youreurope/citizens/w … dex_en.htm

LOL, and also realised that they probably won't apply as your employer is in the UK!

gwynj Bulgaria Expert

Member since 30 June 2020

gwynjBulgaria Expert08 April 2022 06:47:53

2572

That's a great link @janemulberry, thank you! It's still relevant as the key issue is how staying in Bulgaria (an EU country) affects your tax residence/liability here. It doesn't much matter whether a remote worker's employment is in another EU country or a non-EU country such as the UK.