10% Tax and a €300 Visa: Why Bulgaria is a Sleeper Expat Gem

10% Tax and a €300 Visa: Why Bulgaria is a Sleeper Expat Gem
Low taxes, cheap visas, and untapped beauty make Bulgaria an emerging expat haven.|©iStock/CalinStan

With countries like the United Kingdom leaving the EU, it’s easy to forget that the bloc is still expanding. And although it’s been an EU member for a while now, Bulgaria has finally achieved full integration.

After a process that started back in 1993, Bulgaria joined the EU on January 1, 2007. Although it started applying Schengen Zone border policies the same year, it was only admitted to the group in 2024—and then only for air and sea travel, not for land borders. The next milestone will be the formal adoption of the euro in January 2026.

The process has been difficult. Like many other Eastern European nations emerging from communism, Bulgaria’s governance raised concerns with the other EU nations about the rule of law, corruption, judicial independence, and the politicization of public administration. The same issues delayed the country’s accession to the Schengen zone, which was compounded by its geographical position adjacent to the sources of illegal immigration to the EU. Finally, concerns about the country’s management of its central bank and financial system delayed adoption of the euro.

Ultimately, the benefits of joining the EU and other arrangements led Bulgarian politicians to clean house. With all the main building blocks of EU integration in place, Bulgaria could become a highly attractive destination for people looking to live in Europe.

One big attraction is the country's flat tax rate of 10%, which applies to the global income of Bulgarian tax residents. This is far lower than elsewhere in Europe, except for Romania, which also offers a 10% flat tax.

The country’s cost of living is also extremely low. Average monthly living costs are around €800, compared to €3,200 in Germany or €2,800 in France.

Getting permission to live in Bulgaria involves several options.

The most expensive is effectively a golden visa, requiring an investment of at least €512,000 in a Bulgarian investment fund. This only requires that you visit any EU country at least once a year and not remain outside of Bulgaria for more than six years. That means visa holders can avoid triggering Bulgarian tax residency altogether.

At the other end of the spectrum, Bulgaria also offers a retirement visa. People who can demonstrate at least €500 a month in steady pension income can get a one-year renewable residency permit. And although the country doesn’t have a formal digital nomad visa, it’s easy to create a Bulgarian company and qualify for residency under the self-employment pathway.

Finally, Bulgaria offers one of the fastest pathways to EU citizenship, which is attainable after five years of permanent residency. In addition to EU citizenship, the Bulgarian passport allows visa-free travel to 174 countries. The only potential hurdle is the requirement that one speak A-2 level Bulgarian.

Bulgaria allows potential expats to arrive in the country on a six-month tourist visa and apply for residency inside the country. Despite the country’s reputation for iffy public administration, most observers report that visas are typically processed within two to three months. Fees are minimal, typically less than €300.

Although there aren’t as many of them as elsewhere in Europe, expats reports that the country is something of a hidden gem. Besides the very low cost of living, the country has a beautiful diverse landscape, with mountains, deep forests, and the Black Sea coastline. Bulgarian culture is quite traditional, and the lifestyle is slower and more authentic than elsewhere in Europe. The locals are said to be friendly and helpful, especially if you try to learn Bulgarian.

The downside is that Bulgarian is written with a Cyrillic alphabet, and English isn’t widely spoken outside of the main cities. The country hasn’t yet developed the same expat-friendly “vibe” as other major expat destinations, and some expats report difficulties with corrupt officials and petty crime. Public health care is good in larger cities, but very basic outside of them.

Bulgaria’s government has seen the benefits of openness to immigration and will no doubt try to improve in these areas as time goes by. In the meantime, for the adventurous, Bulgaria could be an excellent first step to EU citizenship. If you’d like to know more give me a call.

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