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IF you have a business it is best to have a accountant handle this for you as the VAT and income taxes are very confusing.  My accountant also handles my local taxes and I receive a credit in my home country for what I pay here.  This may sound like a cop out or easy way to get out of understanding however I found it almost impossible to deal with the deadlines and offsets as if you miss a date there are onerous penalties. 

The accountant services are very inexpensive and more than offset by any potential penalties that you might have to pay if you miss a deadline. 

Having said that, BE Careful to not give a POA for your accounts as many if not most attorneys, judges and accountants are tempted by the ignorance and money that expats possess. 

How do the taxes apply to retired with just pensions. What do you do?

@jeanmandredeix

I have a UK private pension, paid monthly by the pension administrator. It's taxed automatically at source PAYE (Pay As You Earn). Bulgaria and the UK have a double tax agreement, so you can't get taxed twice. Aside that, Bulgaria doesn't tax pensions anyway.

However, if you were to work in Bulgaria, whether employed or self employed or running a company, everything you earn in Bulgaria would be taxed by the Bulgarian Inland Revenue. Saying that, the tax rate here, is a mere 10% for income tax and 15% for capital gains.

It should also be born in mind, that whilst there is a personal allowance in the UK, there is no personal allowance in Bulgaria.  So it's swings and roundabouts.