American in Sofia - can I keep driving on my US license or do I have to take Bulgarian exams?

Your friend is unfortunately correct, and you are approaching the deadline. The rules: a non-EU licence is recognized in Bulgaria for up to one year from the date your first residence permit was issued, and during that period it should be accompanied by a notarized Bulgarian translation or an international driving permit. After that year, you are legally driving without a valid licence. At month eight, you have around four months to sort this out. There is no licence exchange agreement between Bulgaria and the United States - unlike UK licences, US licences cannot be swapped without exams - so your path is the Bulgarian examinations: a theory test and a practical test. The mitigations: you do not necessarily have to sit through a full beginner driving course to replace an existing foreign licence, and the theory exam can be arranged in English for an additional fee - driving schools in Sofia that cater to foreigners handle the paperwork, booking and a few refresher lessons, and several have English-speaking instructors. Budget a few hundred euro all-in and start now, because slots and paperwork take weeks. You will need your Bulgarian ID number and residence card, plus the medical certificate. About the gray zone: yes, plenty of Americans drive here for years on a US licence and police checks rarely do the residence-date math. But the two real risks are exactly what your friend said - a fine and possible vehicle issues if an officer does check, and far worse, an insurer disputing a claim after an accident on the basis that you held no valid licence. That second one can be financially catastrophic. Do the exams. Details in our guide at /guides/driving-in-bulgaria-license-car-import.