The Double Taxation Treaty between Bulgaria and the UK

Just to reiterate: it is possible to be tax resident in more than one country at the same time. In this case you could end up liable to pay the same tax in both countries. Also, a particular item of income could, under each country’s different rules, be taxable in both the country in which it is sourced and also in the country in which the recipient of that income is resident.

For these reasons, many countries have concluded agreements called double taxation agreements with other countries to protect individuals from being required to pay tax twice. Bulgaria and the UK have such an agreement.

Employment Income in Bulgaria

For an employee it is your employer’s responsibility to deduct and pay your income tax to the government each month (similar to the PAYE scheme in the UK).They are also responsible for paying the Bulgarian equivalent of your social security and National Insurance contributions.

Income tax is calculated according to what rate-band your income falls into, and then is subject to a percentage tax plus a fixed figure tax. Examples of the tax rates and fixed rate taxes for income tax payable on employment income in 2007 are shown in the tables below: