LLC × residence calculator · Edition 2026.09
If you lived in Bulgaria: how much tax you would pay on your LLC profit
Bulgaria taxes worldwide income but has no published rule on how to treat a transparent single-member US LLC. The NRA can see what you collect as business income at 10% (ZDDFL art. 48) or, if it treats the LLC as a separate company, as a foreign-source dividend at 5% (ZDDFL arts. 38 and 46.3). This sheet uses the 10%, the costlier of the two scenarios and the one most local advisors assume when there is no formal distribution involved.
Isaac Cubero · Checked on 14 September 2026 · worldwide income
At $100,000 of profit
On $100,000 of LLC profit, living in Bulgaria, you would pay about $10,000 a year: a 10% effective rate.
worldwide income
| Bulgarian personal income tax, flat 10% on the profit as business income | $10,000 |
| Estimated total | $10,000 |
Sources: ZDDFL (Bulgarian Personal Income Tax Act) arts. 38, 46 and 48, text in force 2026: general 10% and 5% on dividends, including foreign-source ones with art. 76 credit (via kik-info.com and tayros.bg) · ZKPO (Corporate Income Tax Act) art. 20: 10% corporate income tax, unchanged since 2007, in force in 2026 · Council of the European Union (8 Jul 2025) and European Central Bank: Bulgaria adopts the euro on 1 Jan 2026, fixed irrevocable rate EUR 1 = BGN 1.95583 · Novinite.com (Sofia News Agency), Dec 2025: the government drops the 2026 budget's dividend-tax hike from 5% to 10% · Fixed exchange rate 0.86 EUR/USD.
Rank 18 of 38 residences by effective rate at this profit.
- The profit is treated as business income under ZDDFL art. 48 (flat 10% on 100% of it), not as a dividend under art. 38 (5%): the NRA has no published rule for transparent LLCs and this is an assumption of this sheet, not a certainty.
- No standard 25% expense deduction that the law gives freelance professions (ZDDFL art. 29), and no social security contributions.
- The fixed exchange rate is BGN 1.95583 per EUR since 1 Jan 2026; the 0.86 fx on this sheet is EUR/USD and does not touch the BGN/EUR conversion.
- If you work from Bulgaria (laptop, clients and hours in Sofia), the NRA can see Bulgarian-source income; if you also register as a sole trader (ET), the rate rises to 15% (ZDDFL art. 48.2) plus social security.
- If the NRA treats the LLC as an opaque foreign company rather than transparent, what you collect is a dividend at 5% (better than the 10% this sheet assumes), but only where there is a formal distribution, not a plain cash transfer.
- The controlled foreign company regime under ZKPO arts. 47a et seq. attributes the undistributed profit of a foreign subsidiary to the Bulgarian company controlling it; I found no published equivalent rule for individuals, but if you direct the LLC from Bulgaria, the tax authority can treat it as a resident company subject to the 10% corporate tax.
- The dividend-tax hike from 5% to 10% proposed in the 2026 draft budget was dropped in December 2025: it stays at 5%, but watch the next budget cycle.
- ZDDFL (Bulgarian Personal Income Tax Act) arts. 38, 46 and 48, text in force 2026: general 10% and 5% on dividends, including foreign-source ones with art. 76 credit (via kik-info.com and tayros.bg)
- ZKPO (Corporate Income Tax Act) art. 20: 10% corporate income tax, unchanged since 2007, in force in 2026
- Council of the European Union (8 Jul 2025) and European Central Bank: Bulgaria adopts the euro on 1 Jan 2026, fixed irrevocable rate EUR 1 = BGN 1.95583
- Novinite.com (Sofia News Agency), Dec 2025: the government drops the 2026 budget's dividend-tax hike from 5% to 10%
- Fixed exchange rate 0.86 EUR/USD.
At three profit levels
What you would pay in Bulgaria depending on what your LLC earns.
| Annual profit | Estimated tax | Effective rate | You would keep |
|---|---|---|---|
| $50,000 | $5,000 | 10% | $45,000 |
| $100,000 | $10,000 | 10% | $90,000 |
| $250,000 | $25,000 | 10% | $225,000 |
And if it were not an LLC
The five cheapest structures from Bulgaria, distributing all the profit.
| Structure | Corporate | Withholding | You, in Bulgaria | Total |
|---|---|---|---|---|
| UAE free zone | $0 | $0 | $5,000 | 5%$5,000 |
| US LLC | $0 | $0 | $10,000 | 10%$10,000 |
| Hong Kong Ltd | $8,250 | $0 | $4,588 | 12.8%$12,838 |
| Bulgarian EOOD | $10,000 | $4,500 | $0 | 14.5%$14,500 |
| EOOD in Bulgaria | $10,000 | $0 | $4,500 | 14.5%$14,500 |
Frequently asked questions
Does a US LLC pay tax if I live in Bulgaria?
The LLC pays no US federal tax if it has no US activity. Bulgaria taxes worldwide income but has no published rule on how to treat a transparent single-member US LLC. The NRA can see what you collect as business income at 10% (ZDDFL art. 48) or, if it treats the LLC as a separate company, as a foreign-source dividend at 5% (ZDDFL arts. 38 and 46.3). This sheet uses the 10%, the costlier of the two scenarios and the one most local advisors assume when there is no formal distribution involved.
How much would I pay in Bulgaria on $100,000 of profit?
On $100,000 of LLC profit, living in Bulgaria, you would pay about $10,000 a year: a 10% effective rate. The figure comes from applying bulgarian personal income tax, flat 10% on the profit as business income to the profit converted to EUR.
Is Bulgaria a territorial country?
No: Bulgaria taxes its residents' worldwide income. The LLC profit goes into your income tax under the country's rule (worldwide income).
Next
The figure is the start. The structure is the decision.
To see Bulgaria against the other 37 residences: the full ladder.