Bulgaria has quietly joined the growing list of EU member states courting location-independent professionals. Amendments published in State Gazette No. 49/2025 revise the Foreigners in the Republic of Bulgaria Act and, for the first time, insert a legal definition of a digital nomad. A third-country national who works entirely online for an employer or clients outside the EU/EEA/Switzerland can now obtain a renewable Bulgarian residence permit — provided that annual remote earnings reach at least €22 000.

The legal architecture

The new rules slot into Articles 24 and 24k of the Act and follow the standard Bulgarian two-step:

• Visa D: issued by a Bulgarian consulate for up to six months, permitting the applicant to enter and settle initial logistics;
• One-year residence card: granted by the Migration Directorate after arrival, renewable in yearly increments.

Although the statute is in force, the Ministries of Interior and Labour have until Q4 2025 to publish implementing regulations. Draft guidelines already confirm three headline requirements:

1. Proof of income (bank statements or payslips) showing at least €22 000 earned in the preceding twelve months from a non-EU source;
2. Private health-insurance cover valid in Bulgaria, with a minimum liability of €60 000;
3. Local accommodation — rental contract or property deed covering the full year of the permit.

A police clearance certificate and apostilled copies of academic or professional credentials round out the dossier.

Tax treatment and corporate nexus

Bulgaria’s flat 10 % personal income-tax rate — the lowest in the EU — remains a central attraction. Remote income paid from abroad is not regarded as Bulgarian-sourced; however, once a nomad spends 183+ days in the country or demonstrates a Bulgarian “centre of vital interests,” worldwide income becomes taxable at that same 10 % rate. Social-security contributions are due only if the worker contracts directly with a Bulgarian entity, so most digital nomads should avoid double charges.

Importantly, the Act clarifies that hosting a single remote employee does not, by itself, create a permanent establishment for the foreign employer. Companies running distributed teams can therefore base talent in Sofia, Plovdiv or the Black-Sea coast without triggering Bulgarian corporate-tax residency — though a separate analysis is prudent if headcount grows.

Why the government introduced the visa

Bulgaria’s IT sector now accounts for nearly 6 % of GDP, yet traditional work-permit routes remain cumbersome. By legalising digital nomads, Sofia aims to:

• attract foreign spending to second-tier cities and winter-resort regions;
• feed the local tech ecosystem with international skills;
• position Bulgaria as a lower-cost alternative to Spain’s or Portugal’s digital-nomad regimes.

The €22 000 income floor is intentionally modest (roughly BGN 43 000) — less than Spain’s €31 000 threshold and well within reach for freelance developers, product designers or remote marketing specialists.

Common pitfalls to watch

• Timing the Visa D application**. Consulates can take eight to ten weeks; misplaced apostilles or expired police certificates are the main cause of rejections.
• Health-insurance clauses. Bulgarian law requires a policy issued by an insurer licensed in the EU. Low-cost travel insurance rarely meets the coverage test.
• Tax-residence drift. Many nomads underestimate the 183-day rule; an unexpected Bulgarian tax liability can arise in the first year if exit dates are not planned.
• Family add-ons. Spouses and minor children may join, but only after the principal permit is issued. Parallel planning avoids a six-month separation.

Where professional support adds value

Securing the new visa is more than a form filing. Applicants must navigate embassy queues, sworn translations, local bank account opening, address registration and annual renewals. For employers, an additional layer involves confirming that remote workstations, VPN nodes and confidential-data flows comply with both EU GDPR and Bulgarian labour statutes.

ERG’s Mobility & Tax practice guides clients through the full life cycle:

• drafting compliant employment or contractor agreements;
• coordinating consular filings and document legalisation;
• structuring tax residence and social-security strategy;
• securing family reunification and school enrolment;
• monitoring legislative updates as the final regulations appear in late 2025.

Looking ahead

By late 2025 Bulgaria will publish the final handbook for digital-nomad applications, open an online booking portal and define fee schedules. Once the first cohort receives cards in early 2026, holders may renew annually for up to five years and ultimately transition to permanent residence or EU long-term resident status. Given Bulgaria’s cost-of-living advantage and 10 % tax ceiling, the programme is poised to become a compelling alternative for globally mobile professionals — and a useful talent-placement option for companies with distributed teams.