Taxes in the National Revenue Agency Bansko (2026): A Complete Guide for Foreigners

The main institution you will need to interact with regarding your income and insurance is National Revenue Agency (NRA). This comprehensive guide is designed specifically for foreigners living in Bansko, to demystify the processes of tax registration, income declaration, VAT and your obligations as a self-employed person.

1. The difference between NRA and Local Taxes: Where is what paid?

The first and most important thing that creates confusion among newly arrived expats is the division of the tax burden in Bulgaria. There are two completely different bodies that collect different types of taxes:

• Local taxes and fees (to the Municipality of Bansko): Here you pay your annual building tax and garbage fee if you own real estate in Bansko, as well as your car tax. This NO is serviced by the National Revenue Agency, and by the municipal administration in the city center.
• NRA (National Revenue Agency): This is the government body. To the NRA, you declare your worldwide or local income, pay your 10% profit tax, pay social and health insurance contributions, and manage your VAT registration.

2. Tax Residency: Do you owe taxes in Bulgaria?

Before registering with the National Revenue Agency, you must determine whether you are a resident for tax purposes. According to Bulgarian law, you become a tax resident of Bulgaria if you meet at least one of the following conditions:

• You have been residing in Bulgaria for more than 183 days in any 12-month period.
• Your “center of vital interests” is located in Bulgaria (this is where your family, main property or main business is located).

3. UIC Number and BULSTAT: Your business identity

To communicate with the National Revenue Agency and to conduct business (for example, as a freelancer), you need an identification number. For individuals – Bulgarian citizens, this is their Personal Identification Number (PIN). For foreigners, things are a little different:

If you have residence status, you receive LNF (Foreigner's Personal Number). But if you want to work as an independent contractor, you will need to register with a registry BULSTAT (to the Registry Agency), from where you will receive your UIC (Unique Identification Code). This code will appear on all your invoices and tax returns.

4. Status of “Self-Insured Person” (Freelancer)

Very digital nomads in Bansko work as programmers, designers or consultants for foreign clients. The most suitable legal form for them is often registration as a “freelancer” or self-employed person.

Basic obligations of the self-insured person:

1. Registration: You must submit a declaration of commencement of activity to the NRA within 7 days of starting work.
2. Insurance: Every month (by the 25th) you are required to pay advance social and health insurance contributions. They are calculated on your chosen insurable income (which cannot be lower than the minimum wage for the country and higher than the maximum insurance threshold).
3. Regulatory recognized costs: As a freelancer, you are entitled to deduct 25% from your income as “statutory recognized expenses” (without submitting invoices for them). The tax of 10% is calculated on the remaining 75%.

5. VAT Registration (VAT): When is it mandatory?

VAT (Value Added Tax) is another key topic that is often overlooked by expats.

Registration under Art. 97a (Provision of services in the EU)

If you are a freelancer in Bansko and provide digital services (programming, marketing) to business clients (B2B) in the European Union, you are obliged to register for VAT (Art. 97a) before to issue your first invoice! This registration is special – you do not charge 20% VAT to your customers (a “reverse charge” applies), but you must submit monthly VIES declarations to the NRA.

Mandatory registration by turnover

If your taxable turnover from Bulgarian customers or sales reaches the threshold of 100,000 BGN (within 12 consecutive months), you are required to make a full VAT registration.

6. Income Declaration: Annual Tax Return

Every year, in the period from January 10 to April 30, all self-employed persons and tax residents must file their Annual Tax Return (ATR) under Art. 50 of the Personal Income Tax Act. In it, you “equalize” your social security contributions based on the money actually earned in the previous year and pay your 10% flat tax.

How to submit the declaration? PIC Code

To avoid waiting in lines at the NRA offices, the Bulgarian state offers an excellent electronic system. To use it, you need PIN (Personal Identification Number) of the NRA or Qualified Electronic Signature (QES). The PIN code is issued completely free of charge at any NRA office only against an ID card / residence card.

7. Contacts and locations: Where is the NRA for the residents of Bansko?

Bansko does not have its own office of the National Revenue Agency. Administrative services for the residents of Bansko municipality are provided in the district center.

8. Best Advice: Hire a Local Accountant

Bulgarian tax legislation, although low in rates, is bureaucratic and changes frequently. The language in which all declarations must be filed is exclusively the official Bulgarian legal language. Trying to do your own accounting using Google Translate almost always ends in mistakes and fines.

In Bansko and the region there are excellent accounting firms that have extensive experience in working with foreigners, speak perfect English and know the specifics of income from platforms such as Upwork, Fiverr, Airbnb or cryptocurrencies. The monthly fee for an accountant in Bulgaria is many times lower than in Western Europe and is the best investment for your peaceful sleep.