Managing Finances And Payments While Working In Bulgaria - Answers & Video

Managing Finances And Payments While Working In Bulgaria

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Managing Finances and Payments while Working in Bulgaria

Bulgaria is a beautiful country located in Southeastern Europe. It offers a unique blend of history, culture, and natural beauty. If you are planning to work in Bulgaria, it is essential to understand how to manage your finances and payments effectively. This article will provide you with detailed information on various aspects of managing finances while working in Bulgaria.

Banking in Bulgaria

  • Opening a Bank Account: To manage your finances efficiently, it is advisable to open a bank account in Bulgaria. You can choose from several reputable banks such as UniCredit Bulbank, DSK Bank, and Raiffeisenbank. Visit the bank’s branch with the necessary documents, including your passport, proof of address, and work permit, to open an account.
  • Types of Bank Accounts: Bulgarian banks offer various types of accounts, including current accounts, savings accounts, and foreign currency accounts. Assess your financial needs and choose the account that suits you best.
  • Online Banking: Most Bulgarian banks provide online banking services, allowing you to conveniently manage your finances from anywhere. You can check your balance, make transfers, pay bills, and even set up automatic payments.
  • ATMs and Cash Withdrawals: ATMs are widely available in Bulgaria, and you can withdraw cash using your debit or credit card. However, be aware of any associated fees, especially when using ATMs from other banks.

Taxation in Bulgaria

  • Personal Income Tax: As an employee in Bulgaria, you will be subject to personal income tax. The current flat rate is 10%, which is relatively low compared to many other countries. Ensure that your employer deducts the appropriate amount from your salary.
  • Social Security Contributions: Bulgarian residents are also required to contribute to the social security system. The contributions cover healthcare, pensions, and unemployment benefits. The rates vary depending on your income and employment status.
  • Tax Residency: Understanding your tax residency status is crucial as it determines the taxes you need to pay. In Bulgaria, the criteria for tax residency include the number of days spent in the country and your permanent address.

Cost of Living in Bulgaria

  • Housing: The cost of housing in Bulgaria varies depending on the location. Sofia, the capital city, generally has higher rental prices compared to other cities. Consider factors such as proximity to work, amenities, and transportation when choosing accommodation.
  • Transportation: Bulgaria has an extensive public transportation system, including buses, trams, and metros. The cost of a monthly public transport pass is affordable, making it a convenient option for commuting to work.
  • Groceries and Utilities: The cost of groceries and utilities in Bulgaria is relatively lower compared to many other European countries. You can find affordable supermarkets and local markets where you can buy fresh produce at reasonable prices.
  • Entertainment and Dining: Bulgaria offers a vibrant nightlife and a variety of dining options. Prices can vary depending on the establishment, but overall, eating out and entertainment are affordable compared to Western European countries.

Payment Methods in Bulgaria

  • Cash: Cash is widely accepted in Bulgaria, especially for smaller purchases and in rural areas. Ensure you have sufficient cash on hand for situations where card payments may not be accepted.
  • Debit and Credit Cards: Most businesses in Bulgaria accept debit and credit cards, including Visa and Mastercard. However, it is advisable to carry some cash as backup, as there may be instances where cards are not accepted.
  • Mobile Payments: Mobile payment apps such as Pay by VIVACOM and ePay are gaining popularity in Bulgaria. These apps allow you to make payments using your smartphone, providing a convenient and secure method of payment.
  • Bank Transfers: Bank transfers are commonly used for larger payments, such as rent or utility bills. Ensure you have the necessary banking details of the recipient to make a successful transfer.

Insurance in Bulgaria

  • Health Insurance: As a resident of Bulgaria, you are required to have health insurance. If you are employed, your employer will contribute to the social security system, which covers basic healthcare. Consider additional private health insurance for comprehensive coverage.
  • Property Insurance: If you own or rent a property in Bulgaria, it is advisable to have property insurance to protect against potential risks such as fire, theft, or natural disasters.
  • Vehicle Insurance: If you own a vehicle, having car insurance is mandatory in Bulgaria. It covers third-party liability and provides protection in case of accidents or damage.

Retirement and Pensions in Bulgaria

  • State Pensions: The Bulgarian pension system provides state pensions to eligible individuals based on their contributions. The amount received depends on factors such as the length of contributions and average income.
  • Voluntary Pension Funds: Consider contributing to voluntary pension funds to supplement your state pension. These funds offer various investment options, allowing you to grow your retirement savings.
  • Retirement Age: The retirement age in Bulgaria is gradually increasing. Currently, it is 65 for men and 63 for women, with plans to reach 67 for both genders by 2037.

Investment Opportunities in Bulgaria

  • Real Estate: Investing in Bulgarian real estate can be a lucrative opportunity. With affordable property prices and a growing tourism industry, you can consider buying properties for rental income or future appreciation.
  • Stock Market: The Bulgarian Stock Exchange offers investment opportunities in various sectors. If you have knowledge and experience in trading stocks, you can explore investing in Bulgarian companies listed on the stock market.
  • Startups and Entrepreneurship: Bulgaria has a thriving startup ecosystem, with numerous opportunities for entrepreneurs. Consider investing in innovative startups or starting your own business in sectors such as technology, e-commerce, or tourism.


Managing finances and payments while working in Bulgaria requires understanding the banking system, taxation, cost of living, payment methods, insurance, retirement options, and investment opportunities. By familiarizing yourself with these aspects, you can effectively manage your finances, ensure compliance with local regulations, and make informed decisions for your financial future in Bulgaria.

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