If you are a Bulgarian citizen earning income from U.S. sources, investing in U.S. property, freelancing for American clients, or filing taxes jointly with a U.S. spouse, you may need an ITIN (Individual Taxpayer Identification Number) issued by the IRS.

The good news: the U.S. and Bulgaria have a tax treaty. This means Bulgarian residents may qualify for reduced U.S. withholding tax rates on dividends, royalties, interest, and other types of income. To access these benefits, you must have an ITIN.

At House of Bookkeepers, an IRS-Certified Acceptance Agent (CAA), we help Bulgarian applicants apply for and receive their ITIN letters securely without mailing passports overseas.

What Is an ITIN?

An ITIN is a nine-digit number (format: 9XX-XX-XXXX) issued by the IRS to individuals who:

  • Need to file or report U.S. taxes

  • Are not eligible for a U.S. Social Security Number (SSN)

What ITIN is not:

  • Not a U.S. work permit

  • Not immigration status

  • Not a substitute for SSN

Who Commonly Uses ITINs?

  • Nonresident aliens with U.S.-sourced income

  • Property investors covered by FIRPTA when selling U.S. real estate

  • Spouses and dependents of U.S. taxpayers

  • Bulgarian students or researchers receiving U.S. scholarships or stipends

  • Freelancers, contractors, or entrepreneurs paid by U.S. companies

Who in Bulgaria Should Apply for an ITIN?

Some common cases include:

  • Freelancers and Digital Workers
    Bulgarians earning via Upwork, Fiverr, Amazon, PayPal, Stripe, or AdSense often face 30% default withholding. An ITIN allows you to file a return and reclaim overpayments while applying treaty benefits.

  • Property Investors
    Selling or renting U.S. real estate triggers FIRPTA withholding (15% of the gross sale price). An ITIN is required to file your tax return and claim refunds if too much was withheld.

  • Filing Jointly with a U.S. Spouse
    If you’re married to a U.S. taxpayer, you’ll need an ITIN to be included on their tax return and access spousal benefits.

  • Investors in U.S. Stocks or Companies
    The U.S.–Bulgaria tax treaty lowers withholding tax on dividends, royalties, and interest. An ITIN ensures you can apply these treaty benefits.

  • Responsible Party for a U.S. LLC
    If you manage a U.S. LLC, you may need an ITIN for IRS filings. Documents often required include:

    • Articles of Organization

    • Operating Agreement

    • IRS EIN Confirmation Letter (CP 575 Notice)

Benefits of Having an ITIN

  • File U.S. tax returns legally

  • Claim refunds for overpaid taxes

  • Apply reduced rates under the U.S.–Bulgaria tax treaty

  • Avoid the default 30% withholding tax on U.S. income

  • Comply with FIRPTA when selling U.S. property

  • Strengthen business relationships with U.S. institutions (often paired with EIN/LLC)

U.S.–Bulgaria Tax Treaty Benefits

The treaty offers important tax savings for Bulgarian residents:

  • Dividends: Reduced from 30% to 5–15% depending on ownership

  • Interest: May be reduced or exempt under certain conditions

  • Royalties: Reduced withholding (often around 10%)

  • Students & Researchers: Scholarship or fellowship income may be exempt under treaty provisions

👉 To claim these benefits, you need:

  • An ITIN

  • The correct IRS form (such as Form W-8BEN or Form 8233) submitted to the U.S. payer

Step-by-Step: How to Apply for an ITIN from Bulgaria in 2025

Step 1: Confirm Eligibility

You need a U.S. tax reason such as:

  • Filing a tax return for U.S. income, freelance work, or investments

  • Selling or renting U.S. property

  • Filing jointly with a U.S. spouse

  • Claiming treaty benefits

Step 2: Complete Form W-7

The official IRS ITIN application form. Must be completed accurately to avoid rejection.

Step 3: Gather Required Documents

  • Valid passport (scan copy works with a CAA; otherwise, IRS requires original or certified copy)

  • U.S. federal tax return (Form 1040 or 1040-NR), unless you qualify for an exception

  • Supporting documents (visa, U.S. income statements, property sale contracts, scholarship letters, etc.)

Step 4: Apply Through a Certified Acceptance Agent (CAA)

With House of Bookkeepers, you don’t need to mail your passport to the U.S. As an IRS CAA, we verify your documents locally in Bulgaria and submit your application directly.

ITIN Processing Timeline in 2025

  • Standard processing: 8–13 weeks

  • Peak season (Jan–Apr): up to 13–16 weeks

  • At HOB, we can retrieve your ITIN number within ~2.5 months by calling the IRS.

    • Note: The official ITIN letter (CP565) will still require the full timeline to arrive by mail.

Why Use House of Bookkeepers (IRS CAA)?

  • ✅ Passport stays safe — verified locally in Bulgaria

  • ✅ Higher approval rate, fewer rejections

  • ✅ End-to-end support: W-7 form, COA, tax return, and submission

  • ✅ Official IRS authorization (listed CAA)

  • ✅ Real-time updates until your ITIN approval letter (CP565) arrives

  • ✅ 100% Money-Back Guarantee if rejected due to our process error

Common Mistakes to Avoid

  • Incomplete or inaccurate Form W-7

  • Using uncertified passport copies (if not applying with CAA)

  • Forgetting to attach a U.S. tax return (unless exempt)

  • Mailing documents through unreliable couriers

  • Thinking ITIN provides immigration or work rights (it does not)

Quick FAQs – ITIN from Bulgaria

Q1. Can I apply for an ITIN from Bulgaria?
Yes. With House of Bookkeepers as your IRS CAA, you don’t need to travel or mail your passport.

Q2. Does Bulgaria have a tax treaty with the U.S.?
Yes. The treaty reduces withholding on dividends, royalties, and certain income. You need an ITIN to claim these benefits.

Q3. How long does it take to get an ITIN?
8–13 weeks. At HOB, we can often retrieve your ITIN number earlier (~2.5 months), but the IRS letter CP565 will still take the full time.

Q4. Do I need a U.S. address?
A U.S. address is not mandatory. The IRS can send your ITIN letter directly to your foreign (non-U.S.) address as listed on your application. However, if you have a U.S. residential address or a mail forwarding service, you may use it for convenience and faster delivery.

Alternatively, we can also receive the letter at our address and send you a scanned copy by email.

Q5. How will you verify my identity?
As part of the IRS verification process, we’ll ask you to provide a selfie of yourself holding the passport’s information page. This simple step confirms that the passport belongs to you and helps us complete your identity verification securely.

Apply with Confidence

At House of Bookkeepers, we make ITIN applications secure and efficient for Bulgarian applicants.

📍 IRS-Certified Acceptance Agent (CAA) – Bulgaria Service
🌍 Website: https://www.houseofbookkeepers.com

Start your ITIN application today — and enjoy the benefits of refunds, treaty savings, and peace of mind.