Bulgaria is becoming a hotspot for freelancers, remote workers, expats, digital nomads and location-independent entrepreneurs. With its flat 10% corporate and personal income tax rates, low cost of living, and EU membership, the country offers a compelling base for digital nomads looking to set up a business in Europe. However, navigating financial obligations from abroad can be tricky without local guidance. That’s where accounting for digital nomads in Bulgaria becomes essential.
Why Digital Nomads Choose Bulgaria
Digital nomads are drawn to Bulgaria for a number of reasons:
– Affordable company registration and freelancer registration
– Favorable tax regime for companies and freelancers
– Fast internet and growing coworking scene
– Access to EU markets and simplified VAT rules
– Electronic and online services for entrepreneurs
But despite the appeal, managing company compliance remotely requires understanding the rules for accounting for digital nomads in Bulgaria.
Company Setup for Digital Nomads
Most digital nomads in Bulgaria register a company under the EOOD (single-owner limited liability company) structure or DPK also known as VCC (limited liability company with variable capital). This allows full control and minimal bureaucracy.
Once the company is registered, nomads often appoint an accountant to handle:
- VAT returns
- Tax returns
- Social Security returns
- Payroll (if applicable)
- Invoicing and financial reports
- Annual tax returns, financial statements and balance sheets
Proper accounting for digital nomads in Bulgaria ensures that legal and tax obligations are met without the need for the owner to reside in the country full-time.
VAT and Tax Considerations
For VAT-registered companies, monthly or quarterly declarations are mandatory. Digital nomads providing services to EU and non-EU clients should be aware of reverse charge mechanisms and the need to issue compliant invoices.
Corporate income tax is flat at 10%, and dividend tax is 5%. Personal income earned from the company is also taxed at 10%. Professional accounting for digital nomads in Bulgaria can help optimize how profits are distributed and taxed.
Social Security for Company Directors
Even if a company is inactive, the director (often the digital nomad) is obligated to pay social security contributions unless they are insured elsewhere in the EU. Contributions are based on the minimum insurance income, and typically range from 250–300 BGN/month. This is a critical part of accounting for digital nomads in Bulgaria that cannot be ignored.
Digital Nomads Working as Freelancers
As the remote work revolution continues to grow, many digital nomads are choosing to base themselves in Bulgaria—not just as company owners, but also as freelancers operating under various legal and tax structures. Whether offering web development, design, consulting, software engineering, coaching, or marketing services, Bulgaria offers a compelling combination of cost-efficiency, tax advantages, and EU access for freelancers.
Digital nomads who wish to operate without setting up a company may register as freelancers (свободна професия) or also known as a self-insured individual (самоосигуряващо се лице).
Key points:
- Easier and cheaper to set up than a company
- Must pay personal income tax (10%) on net income
- Must pay social security contributions, calculated on declared income (but no less than the minimum threshold)
- Annual tax declaration and advance tax payments required
This structure may work well for low-volume freelancers with Bulgarian residency.
Choosing the Right Accountant
Since most nomads are abroad, having a reliable, English-speaking accountant is essential. Our accounting firm offers:
– Full remote support and communication
– Online services
– Legal address and virtual office services
– Personalized tax advice and representation
When it comes to accounting for digital nomads in Bulgaria, choosing someone who understands international income sources and cross-border taxation is a game-changer.
Conclusion
Bulgaria presents one of the most attractive environments in the EU for digital nomads to base their business. However, staying compliant with tax and legal obligations is crucial. By working with experts in accounting for digital nomads in Bulgaria, you can focus on growing your business while ensuring everything runs smoothly in the background.
Whether you are a startup, an established enterprise, or a freelancer seeking professional guidance, Accountly is here to be your reliable Accountant in Bulgaria. Our dedicated team in Sofia will ensure your financial matters are handled efficiently and transparently. Handle your accounting burdens so you can focus on growing your business.
