Why Bulgaria Has Become a Strategic EU Tax Jurisdiction for Business Owners
In a decisive move aligning with global trends in digital mobility and remote work, Bulgaria has amended its Foreigners in the Republic of Bulgaria Act, introducing a dedicated legal regime for digital nomads. This reform—promulgated in State Gazette No. 52 on 27 June 2025—establishes Bulgaria as a forward-thinking jurisdiction for international professionals and investors seeking a stable, cost-effective base within the EU.
What the New Regime Means for Digital Nomads
Under the amended legislation, non-EU/EEA/Swiss nationals may apply for extended residence in Bulgaria if they meet the following conditions:
- Perform remote work using digital technologies, without conducting business or offering services within Bulgaria;
- Are either:
- Employed by a foreign (non-EU) employer under a valid labour contract;
- Hold more than 25% ownership or partnership in a foreign entity providing remote services; or
- Operate as self-employed professionals with a minimum of one year of remote work experience;
- Demonstrate annual income equivalent to 50 Bulgarian minimum monthly wages for the previous calendar year.
Residence is granted for up to one year, with the possibility of a single 12-month extension.
Why This Matters to Digital Nomads and Investors
Bulgaria offers a compelling proposition for digital professionals and international investors seeking access to the EU market:
- Cost Efficiency: Among the lowest cost of living and taxation levels in the EU;
- Strategic Location: Situated at the crossroads of Europe, the Middle East, and Asia, with excellent connectivity;
- Digital Infrastructure: Reliable internet access, expanding tech hubs, and a growing community of remote professionals;
- Forthcoming EU Integration: Bulgaria is actively preparing for Schengen Area and Eurozone accession, enhancing legal certainty and economic stability.
These conditions create a favorable environment for digital nomads to operate remotely while enjoying EU residency rights, and for foreign investors to establish a foothold in an evolving business ecosystem.
Investor-Focused Amendments: Enhanced Compliance for Representative Offices
The new law also tightens the regulatory framework for foreign businesses maintaining a presence in Bulgaria via commercial representative offices. The key new obligations include:
- A minimum annual turnover of BGN 100,000 for each of the two previous financial years;
- Regular reporting to the Bulgarian Chamber of Commerce and Industry (BCCI);
- Mandatory notification of any changes to the registration details of the representative office.
These measures are designed to enhance the credibility and transparency of foreign commercial activity in the country.
Key Considerations for Strategic Planning
Foreign investors and digital nomads should assess the following:
- Residency Planning: Evaluate eligibility criteria early to ensure alignment with income thresholds and activity restrictions;
- Tax & Compliance: Understand the Bulgarian tax implications of remote residency, and ensure structuring is compliant with both local and international obligations;
- Long-Term Prospects: While initial residence is temporary, the Bulgarian market may serve as a gateway to longer-term EU residence options and investment opportunities.
Taskova Legal’s Perspective
The recent legislative changes reinforce Bulgaria’s commitment to modernising its immigration and investment landscape. For digital nomads, the country now presents a viable, legally secure base within the EU. For investors, the revised framework brings clarity to the operational thresholds and compliance expectations tied to maintaining a physical presence through representation.
At Taskova Legal, we offer end-to-end support for both remote professionals seeking Bulgarian residence and foreign businesses navigating local incorporation, tax, and immigration requirements.
