Work in Bulgaria for a corporation based in Luxembourg

Can I work remotely for a company in Luxembourg while being in Bulgaria?

It is usually doable, but we recommand to check the following key points first:

  1. Are you a citizen of the EU?
  2. Are you a resident of the EU?
  3. Are you a citizen of Bulgaria?
  4. Are you a resident of Bulgaria?

Luxembourg is a small country, but it is a member of the EU and the Schengen zone, so you can work from anywhere in the EU.
You should be a resident of the EU to work remotely for a company in Luxembourg, but you can be a citizen of the EU.
You should be a citizen of the EU to work remotely for a company in Luxembourg, but you can be a resident of the EU.

How to live in Bulgaria and find remote work in Luxembourg?

Finding remote work in Luxembourg if you are located in Bulgaria might be difficult, therefore we recommend to check the list of remote jobs in Bulgaria. It is very likely that the companies from the list of remote jobs in Bulgaria, are hiring in Luxembourg.

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How a company in Luxembourg can send my salary in Bulgaria?

When working remotely for a corporation in Luxembourg, you salary can be send to Bulgaria but not the other way around.

The European Union has a system for cross-border transfers of salaries. The system is called the European Union Transfer of Pay. The EU Transfer of Pay is a system that allows workers in one EU country to receive their salary in another EU country.

Where to pay my taxes when working remotely in Bulgaria for a company in Luxembourg?

If you are working remotely in Bulgaria for a corporation established in Luxembourg, taxes could seem complicated but in fact are pretty simple.

For the purposes of this article, we will assume that you are working in Bulgaria for a corporation established in Luxembourg. However, all the information we will provide can be applied to any other country in the world.
If you are not working remotely, you will be required to pay taxes to Bulgaria and to Luxembourg.

What is the difference between VAT and corporate income tax?
In Bulgaria, there is a value-added tax (VAT) that is levied on the total value of goods and services you purchase. The VAT rate is 21%.
In Luxembourg, the tax is called “Corporate Income Tax”. It is a tax that is levied on the income of the corporation, which is the amount of profit they make in the country.
This means that the total amount of taxes you will be required to pay will be the sum of the VAT rate in Bulgaria and the corporate income tax in Luxembourg.

What is the VAT rate in Bulgaria?
The VAT rate in Bulgaria is 21% (for more information, please read our article about VAT in Bulgaria).
As a Bulgarian citizen, you are required to pay this tax on all goods and services you purchase. If you are purchasing goods or services in the Bulgarian market, you will be required to pay VAT.
If you are purchasing goods or services from another country, you will be required to pay the VAT in that country.