In 2025, Bulgaria introduced a new residency category specifically tailored for digital nomads. This legal framework allows non-EU/EEA citizens to reside in Bulgaria while working remotely for foreign employers or clients. This article outlines the legal definitions, requirements, and benefits based on the Law on Foreigners in the Republic of Bulgaria (ZCHRB).
Legal Definition and Scope
According to the official legislation (specifically referencing the amendments in Art. 24p of the ZCHRB), a Digital Nomad is defined as a foreigner who provides remote services through information technology and meets one of the following criteria:
- Remote Employees: Individuals employed by a company registered outside the EU, EEA, or Switzerland. The employment contract must be valid for at least the duration of the requested residency.
- Business Owners/Executives: Owners, shareholders (holding >25%), or board members of companies registered outside the EU/EEA/Switzerland who manage their business remotely.
- Freelancers: Independent professionals who have provided remote services for at least one year prior to application and do not have Bulgarian clients.
Important Restriction: Digital nomad visa holders are legally prohibited from performing work for Bulgarian employers or providing services to entities located within the territory of the Republic of Bulgaria.
Eligibility Requirements
The following table summarizes the core requirements for the 2025 application cycle:
| Requirement | Specification | Notes |
|---|---|---|
| Minimum Income | >50 times the Bulgarian Minimum Wage | Approx. €27,550 per year (for 2025) |
| Health Insurance | Minimum €30,000 coverage | Must cover EU/Bulgaria emergency care |
| Criminal Record | Clean police clearance | Required from country of origin/residence |
| Housing | Proof of accommodation | Rental contract or notarized invitation |
| Client Origin | 100% Foreign | No Bulgarian clients/employers allowed |
Financial and Tax Incentives
Bulgaria offers one of the most competitive fiscal environments in the European Union for remote workers:
- Flat Tax Rate: Personal income is taxed at a flat rate of 10%.
- Tax Residency: To become a Bulgarian tax resident and benefit from the local tax rate, the individual must reside in the country for more than 183 days in a calendar year.
- Cost of Living: High-speed internet infrastructure and low operational costs make it a primary hub for international professionals.
Application Procedure
The application process consists of two primary stages:
- Visa Type D Application: Submitted at a Bulgarian embassy or consulate abroad. This is a long-term visa required for the residency permit application.
- Residence Permit Issuance: Once in Bulgaria, the applicant must register with the “Migration” Directorate of the Ministry of Interior. The permit is issued for up to 12 months and can be renewed if the conditions (income and employment) are still met.
Rights of the Permit Holder
Holders of the Bulgaria Digital Nomad Visa (Art. 24p) are entitled to:
- Lawful residence in the country for up to one year (renewable).
- Freedom of movement within the Schengen Area (subject to current Bulgarian membership status/rules).
- Access to private and public healthcare systems (upon payment of insurance).
- The right to open local bank accounts and lease property.
Nice complement to the recent introduction of Company with variable capital
For founders and engineers developing AI products, Bulgaria’s fiscal environment offers a significant competitive advantage by maximizing the financial “runway” necessary for intensive research and development. The combination of a low cost of living and a 10% flat corporate tax rate—one of the lowest in the European Union—allows startups to allocate more capital toward expensive GPU compute power and specialized technical talent rather than administrative overhead or high taxes. By leveraging the Digital Nomad Visa, AI professionals can establish a lean, high-efficiency operation in a country known for its world-class internet infrastructure and growing tech ecosystem.
The recent introduction of the Variable Capital Company (VCC) into Bulgarian legislation further enhances this environment, providing a flexible corporate structure specifically designed for high-growth tech ventures. The VCC model simplifies complex processes such as issuing employee stock options and securing venture capital through convertible loans, which are essential for scaling AI startups that rely on equity-based incentives. This modern legal framework, combined with the ease of entry provided by the Digital Nomad residency, makes Bulgaria an ideal strategic hub for international innovators looking to build and scale next-generation AI technologies within the EU.