Banking, pensions and tax in Bulgaria
Bulgaria taxes residents' pensions and other income at a flat 10%, and US Social Security is taxed only in the US. How US, UK and Canadian pensions are paid there.
How your pension reaches a Bulgaria bank, what Bulgaria taxes, and what you still report at home. Checked against official sources on Oct 8, 2026.
- Tax on a foreign pension
- Up to 10% Flat 10% at most. PwC Tax Summaries; US-Bulgaria tax treaty. Checked Oct 8, 2026.
- Top rate, local income
- 10% All taxable income. PwC Tax Summaries; US-Bulgaria tax treaty. Checked Oct 8, 2026.
- US Social Security
- Direct deposit SSA POMS. Checked Oct 8, 2026.
- UK State Pension
- Uprated yearly GOV.UK. Checked Oct 7, 2026.
- Canada OAS
- Agreement Canada.ca. Checked Oct 8, 2026.
- US FBAR
- Over $10,000 Combined foreign accounts at any time in the year. FinCEN. Checked Oct 7, 2026.
Getting your pension paid in Bulgaria
United States
Social Security
Yes. Social Security can be paid straight into a bank account in Bulgaria: the Social Security Administration routes international direct deposits through the Federal Reserve Bank of Kansas City and a processor bank in Bulgaria to your local bank. There is a sign-up form for Bulgaria (SSA-1199-OP55).
SSA POMS. Checked Oct 8, 2026.
United Kingdom
State Pension
It can be paid into a bank in Bulgaria or a UK account. Bulgaria is in the European Economic Area, so the pension rises every year as it would in the UK.
GOV.UK. Checked Oct 7, 2026.
Canada
Old Age Security
Paid while you live outside Canada only if you lived in Canada for at least 20 years after age 18. Canada and Bulgaria have had a social security agreement since March 1, 2014, so periods credited under Bulgaria's pension program can count as residence in Canada for OAS.
Canada.ca. Checked Oct 8, 2026.
Other countries: check whether your pension can be paid abroad, whether it keeps rising with inflation there, and whether your country has a social security agreement with Bulgaria.
How Bulgaria taxes you
Bulgaria taxes its residents on worldwide income at a flat 10%. You are resident if you live in Bulgaria for more than 183 days in any 12 months, or if your centre of vital interests is there; a permanent address makes you resident only together with that centre of interests. Income from voluntary pension schemes received on retirement is exempt. Interest from bank accounts in the EU or EEA is tax free, interest from banks outside them is taxed at 10%, and dividends at 5%. Under the US-Bulgaria tax treaty, US Social Security is taxed only in the United States, while other pensions are taxed only in the country where you live. The income tax scale:
| Taxable income | Rate |
|---|---|
| All taxable income | 10% |
PwC Tax Summaries; US-Bulgaria tax treaty. Checked Oct 8, 2026.
What US citizens still report
US citizens file a US return on worldwide income wherever they live; the US has an income tax treaty with Bulgaria, which can decide which country taxes some income. Two reports cover money held abroad:
| FBAR (FinCEN Form 114) | Over $10,000 combined, any time |
| Form 8938, single, living abroad | Over $200,000 at year end or $300,000 any time |
| Form 8938, married filing jointly | Over $400,000 at year end or $600,000 any time |
FinCEN; IRS. Checked Oct 7, 2026.
Pension and tax questions
Can I get US Social Security paid in Bulgaria?
Yes. Social Security can be paid straight into a bank account in Bulgaria: the Social Security Administration routes international direct deposits through the Federal Reserve Bank of Kansas City and a processor bank in Bulgaria to your local bank. There is a sign-up form for Bulgaria (SSA-1199-OP55).
Will my UK State Pension go up each year in Bulgaria?
It can be paid into a bank in Bulgaria or a UK account. Bulgaria is in the European Economic Area, so the pension rises every year as it would in the UK.
Is my pension taxed in Bulgaria?
Bulgaria taxes residents on worldwide income at a flat 10%, so 10% is the most a foreign pension can be taxed. Tax treaties move the right to tax: under the US treaty, US Social Security is taxed only in the United States, while private pensions are taxed only where you live.
Do I still file a US tax return?
Yes, US citizens file on worldwide income wherever they live, and report foreign accounts on an FBAR once they pass $10,000 combined at any point in the year.
Can US Social Security be deposited into a bank in Bulgaria?
Yes. The Social Security Administration pays by international direct deposit to banks in Bulgaria, routed through the Federal Reserve Bank of Kansas City, with a sign-up form for Bulgaria.
Does Bulgaria tax US Social Security?
No. Under the US-Bulgaria tax treaty, US Social Security paid to a resident of Bulgaria is taxed only in the United States.
What is the income tax rate in Bulgaria?
A flat 10% on all personal income, with some exceptions such as dividends at 5% and tax-free interest from EU and EEA bank accounts.
