Step-by-step Plan for an Americans to permanently relocate to Bulgaria.

 

Plan for Moving to Bulgaria Permanently

1. Legal Aspects

To relocate permanently to Bulgaria as a non-EU citizen, you must navigate visa and residency requirements. Bulgaria offers several pathways for residency, particularly suitable for entrepreneurs.

1.1. Visa and Residency Options

  • Type D Visa (Long-Term Residency Visa): Required for stays exceeding 90 days. As an entrepreneur, you can apply for a Type D visa by starting a business in Bulgaria.
    • Business D Visa: Register a limited liability company (LLC, known as OOD or EOOD) and employ at least 10 Bulgarian citizens for a minimum of 6 months. This option requires more investment but leads to temporary residency.
    • Trade Representative Office (TRO): Register a TRO of a foreign company (e.g., your existing U.S.-based online business). This is a lower-cost option, requiring no local employees, and can lead to a Type D visa.
    • Startup Visa: If your online business is innovative, apply for a Startup Visa by obtaining a certificate from the Bulgarian State Agency for Scientific Research and Innovation (SASRI). You must own at least 50% of the company and score 8 points based on criteria like financial projections and capital.
  • Investor Visa: For those with higher capital, invest €312,000 in real estate or €190,000–€288,000 in other options (e.g., government bonds or stocks) to secure permanent residency. Given your net worth of $120,000, this may not be feasible unless you liquidate assets or secure financing.
  • Application Process:
    1. Gather documents: valid passport (issued within the last 10 years, valid for 3+ months, with 2 blank pages), proof of financial means, health insurance, and a Bulgarian address.
    2. Apply at the Bulgarian Embassy in the U.S. (e.g., Washington, D.C.).
    3. After approval, travel to Bulgaria to submit a residency application to the Migration Directorate.
    4. Temporary residency (6–12 months, renewable up to 5 years) can lead to permanent residency after 5 years, and citizenship after an additional period.
  • Key Notes:
    • Bulgaria allows dual citizenship, so you can retain your U.S. passport.
    • The Golden Visa/Citizenship by Investment program ended in March 2022, so focus on business or residency pathways.
    • Hire a Bulgarian lawyer specializing in immigration and business incorporation to ensure compliance.

1.2. Company Registration

Starting a business is a practical route for residency and aligns with your entrepreneurial background.

  • Type: Limited Liability Company (OOD for multiple partners, EOOD for sole ownership). Minimum capital is 2 BGN (~€1).
  • Process:
    1. Choose a unique company name and register with the Commercial Register at the Bulgarian Registry Agency.
    2. Draft Articles of Association and notarize documents.
    3. Open a Bulgarian bank account (physical presence required).
    4. Pay state fees: 30 euros for electronic registration.
  • Remote Option: Use a power of attorney to instruct a local solicitor to handle registration without traveling to Bulgaria.
  • Timeline: Registration takes 1–5 days if documents are in order.
  • Tax Residency: To become a tax resident, prove your “center of vital interests” in Bulgaria (e.g., business activity, property, or family ties). This allows you to benefit from Bulgaria’s low tax rates.

1.3. Legal Compliance

  • Documents: Ensure all documents (e.g., Articles of Association) are translated into Bulgarian by a certified translator and notarized.
  • Tax Obligations: Register for social security and taxes within 7 days if you manage the company. EU citizens with an A1 certificate may be exempt, but as a U.S. citizen, you’ll need to comply unless a tax treaty applies.
  • Hiring a Professional: Engage an accountant to handle annual tax returns and compliance, especially if you’re not fluent in Bulgarian.

2. Financial Aspects

Bulgaria’s low cost of living and favorable tax regime make it attractive for entrepreneurs. Having at least $120,000 of net worth provides a solid foundation, but careful budgeting is essential.

2.1. Cost of Living

  • Monthly Expenses (Sofia, 2025 estimates):
    • Rent (1-bedroom apartment, city center): €400–€600 (~800–1,200 BGN)
    • Utilities (electricity, water, internet): €80–€100
    • Groceries: €150–€200
    • Dining out/transportation: €100–€200
    • Health insurance: €50–€100 (private, expat-focused plans)
    • Total: €850–€1,350 (~1,700–2,700 BGN)
  • Comparison: Bulgaria’s cost of living is 48% lower than in UK or US generally. In Sofia of Varna for instance, 1500 euros (3,165 BGN) provides a lifestyle equivalent to $3,300 in a U.S. cities.
  • Your Budget: With $100-120 k budget assuming no income from your business initially, you can sustain yourself for 7–10 years at €1,000/month. However, your online or other business activity  could generate income to extend this runway.

2.2. Taxation

  • Personal Income Tax: Flat rate of 10%, one of Europe’s lowest.
  • Corporate Tax: 10% on worldwide income for resident companies. Dividends are taxed at 5%. Capital gains from Bulgarian or EU stock exchanges are exempt.
  • Social Security: Contributions are split between employer and employee (~13.78% employee, ~18.92% employer). If you pay yourself a salary, expect ~6.26% of net profit in contributions. Dividends (5% tax) may be more tax-efficient.
  • Tax Treaties: The U.S.-Bulgaria double taxation treaty prevents double taxation on income. Consult a tax professional to optimize your structure.
  • Gray Economy: Some businesses underreport income, but this is risky. Bulgaria’s State Tax Inspectorate can impose fines, freeze accounts, or initiate criminal proceedings for tax evasion. Stick to legal compliance.

2.3. Banking and Finances

  • Business Bank Account: Required for company registration. Banks like UniCredit Bulbank or DSK Bank are reliable. Expect fees for account opening and maintenance.
  • Personal Bank Account: Open an account for daily expenses. Non-residents can open accounts, but physical presence is often needed.
  • Payment Processors: Bulgaria supports Stripe, PayPal, Wise, and Revolut, ideal for your online business.
  • Investment Options: With $120,000, consider:
    • Real Estate: Apartments in Sofia start at €80,000–€150,000. Buying property can support a residency application if valued at €312,000+.
    • Savings: Bulgarian banks guarantee deposits up to €100,000. Place excess funds in a high-yield savings account or diversified investments.
  • Currency: Bulgarian Lev (BGN), pegged to the Euro at 1.96:1. Monitor exchange rates when transferring USD. We recommend using Revolut while doing the exchange.

2.4. Business Costs

  • Setup Costs:
    • Company registration: €80–€100 (fees, notarization, translation)
    • Lawyer/accountant: €1500–€2000 for initial setup
    • Virtual office (for registered address): €50–€100/month
  • Ongoing Costs:
    • Accounting: €50–€150/month
    • Taxes: ~10% corporate, 5% dividends, or 6.26% social contributions on salary
    • No running costs if the company is inactive, but annual tax returns are mandatory.
  • Funding: With $120,000 you can cover setup and living costs. Explore EU grants for IT or innovation if your business qualifies.

3. Lifestyle Aspects

Bulgaria offers a high quality of life with a low cost, diverse landscapes, and a growing expat community. As an online entrepreneur, you’ll benefit from its IT hub status and digital infrastructure.

3.1. Where to Live

  • Sofia: The capital, with 1.28M+ residents, is an IT hub with vibrant co-working spaces, cafes, and expat communities. Fast internet (100 Mbps, €10–€20/month) supports your online work.
  • Plovdiv: A cultural hub with 340,000 residents, cheaper than Sofia (€300–€500 rent). Ideal for a relaxed lifestyle.
  • Varna: Coastal city with 312,000 residents, known for beaches and tourism. Rent is ~€350–€550.
  • Recommendation: Start in Sofia for business opportunities and expat networks. Rent initially to explore before buying property.

3.2. Daily Life

  • Culture: Bulgarians are warm, value traditions, and enjoy long meals. Learn basic Bulgarian to integrate, though English is widely spoken in cities (22% of the population has a university degree, many speak English).
  • Food: Affordable, flavorful cuisine (meat, yogurt, vegetables). A meal out costs €5–€10. Groceries are 65% cheaper than the EU average.
  • Climate: Four seasons, with hot summers (Mediterranean influence) and cold winters (continental). Coastal areas like Varna are milder.
  • Safety: Bulgaria ranks 26th on the 2019 Global Peace Index, safer than many Western countries. Violent crime is low, but watch for pickpockets in busy areas.

3.3. Healthcare

  • System: Universal healthcare funded by compulsory contributions. Expats often opt for private insurance (€50–€100/month) for faster service.
  • Costs: Private checkups cost €50–€80, moderate procedures ~€100. Dental care is high-quality and affordable, attracting “dental tourism.”
  • Recommendation: Purchase international health insurance (e.g., via International Citizens Insurance) before moving.

3.4. Connectivity

  • Internet: Reliable, fast (Sofia ranks high for digital nomads). Co-working spaces in Sofia cost €100–€200/month.
  • Transport: Public transport in Sofia (buses, metro) is cheap (€0.80/ride). Taxis are affordable (€0.50/km). International airports in Sofia, Varna, and Burgas connect to Europe.
  • Digital Nomad Scene: Sofia and Plovdiv have growing digital nomad communities, with meet-ups and networking events.

3.5. Social Integration

  • Expat Communities: Smaller than in Western Europe but active in Sofia and Varna. Join forums like Reddit’s r/bulgaria or Expatra.com for tips.
  • Language: Bulgarian is the official language, but English suffices in business and urban areas. Invest in language lessons (€10–€20/hour) to build connections.
  • Activities: Explore ski resorts (Bansko), Black Sea beaches (Varna), or cultural sites (Plovdiv). Outdoor activities are affordable and accessible.

4. Step-by-Step Plan

Phase 1: Pre-Move Preparation (2–4 Months)

  1. Research: Confirm Bulgaria suits your lifestyle. Visit for 90 days (visa-free for U.S. citizens) to explore Sofia, Plovdiv, or Varna.
  2. Hire Professionals: Contact a Bulgarian lawyer (MigrateGlobal.net) and accountant to plan your business and residency.
  3. Business Setup:
    • Decide on OOD/EOOD or TRO based on your budget and goals.
    • Prepare documents (passport, business plan, financial proof).
    • Budget €1,500–€2,000 for setup costs.
  4. Finances:
    • Transfer $10,000–$20,000 to a U.S. account for initial expenses.
    • Research Bulgarian banks and payment processors.
  5. Health Insurance: Secure an international plan covering Bulgaria.
  6. Language: Start basic Bulgarian lessons online.

Phase 2: Visa and Relocation (1–3 Months)

  1. Apply for Type D Visa:
    • Submit documents at the Bulgarian Embassy in the U.S.
    • Include proof of business registration, financial means (~€5,000 in a bank account), and health insurance.
  2. Travel to Bulgaria:
    • Upon visa approval, arrive and submit residency application.
    • Rent an apartment in Sofia (€400–€600/month).
  3. Open Bank Account: Set up business and personal accounts.
  4. Register Address: Use a virtual office or rental agreement for your company’s registered address.

Phase 3: Settling In (6–12 Months)

  1. Business Operations:
    • Launch or expand your online business, leveraging Bulgaria’s IT infrastructure.
    • File taxes and comply with social security obligations.
  2. Lifestyle:
    • Join coworking spaces and expat groups in Sofia.
    • Explore Bulgaria’s cultural and natural attractions.
  3. Residency Renewal: Renew your temporary residency annually, working toward permanent residency after 5 years.

5. Pros and Cons

Pros

  • Low cost of living (~48% less than the U.S.).
  • Favorable taxes (10% personal/corporate, 5% dividends).
  • Access to EU markets via Bulgaria’s EU membership.
  • High quality of life with diverse landscapes and safe cities.
  • Growing digital nomad and IT scene in Sofia.
  • Full Schengen Union member, you can move freely all over the Union, where the same Schengen laws are applied.

Cons

  • Bureaucracy can be complex; professional help is essential.
  • Language barrier in rural areas or with older generations.
  • Small but growing expat community compared to Western Europe.

6. Budget Estimate (First Year)

Item Cost (USD)
Lawyer/Accountant Fees $1,500–$3,000
Company Registration $1500–$2000
Visa Fees $100–$300
Health Insurance $600–$1,200
Rent (Sofia, 12 months) $5,000–$7,500
Living Expenses (12 months) $7,000–$10,000
Travel (U.S. to Bulgaria) $800–$1,200
Miscellaneous (furniture, setup) $1,000–$2,000
Total $16,300–$25,700

7. Recommendations

  • Prioritize Business D Visa or TRO: These align with your entrepreneurial profile and budget, avoiding high investment thresholds.
  • Engage Professionals: A lawyer and accountant will save time and ensure compliance.
  • Start in Sofia: Its IT hub status and expat community suit your online business.
  • Maintain Liquidity: Keep $50,000–$70,000 in savings for emergencies and business growth.
  • Learn Bulgarian: Basic fluency enhances integration and business dealings.

8. Resources

  • Legal: MigrateGlobal.net
  • Expat Info: Expatra.com, Reddit’s r/bulgaria
  • Business: InvestBulgaria.bg, Bulgarian Chamber of Commerce and Industry
  • Banking: UniCredit Bulbank, Tokuda Bank, United Bulgarian Bank.
  • Insurance: International Citizens Insurance
The article is prepared by the team of dedicated professionals of Migrate Global.
You can address any questions at info@migrateglobal.net

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