Why Bulgaria? Tax & Benefits
Bulgaria offers the EU's lowest flat corporate income tax at 10%, with no progressive brackets, no wealth tax, and no exit tax. Dividends paid to non-resident shareholders are subject to a 5% withholding tax — also the lowest in the bloc — which can be reduced or eliminated under Bulgaria's 70+ double tax treaties.
Additional advantages include no minimum capital requirement beyond €1, no restrictions on foreign ownership, access to the EU single market, and full GDPR / AML compliance as standard. Bulgaria adopted the euro (EUR) on 1 January 2026, retiring the lev and becoming the 21st Eurozone member. This eliminates currency conversion friction for EU clients and simplifies banking for non-resident founders.
Legal Structures
EOOD — Single-Member LLC
The go-to structure for solo founders and digital businesses. One shareholder, one director (can be the same person), limited liability. Minimum capital: €1. No nationality restrictions.
OOD — Multi-Member LLC
Identical to EOOD but accepts two or more shareholders. Profit distribution, voting rights, and management structure are defined in the Articles of Association. Suitable for partnerships and joint ventures.
DPK — Variable Capital Company
Bulgaria's modern startup entity introduced in 2023. Allows flexible equity (share classes, SAFEs, convertible instruments), no fixed capital floor, and streamlined investor on-boarding. Ideal for venture-backed startups.
5-Step Registration Process
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1
Reserve your company name
Search the Bulgarian Commercial Register (Търговски регистър) to confirm your chosen name is available. Names must be in Latin or Cyrillic and unique nationally.
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2
Draft and notarise founding documents
Prepare the Articles of Association, Specimen Signature Declaration, and the shareholder consent. If you are registering remotely, execute a notarised Power of Attorney in your country (apostille required for most non-EU countries).
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3
Deposit share capital
Open a temporary capital deposit account at a Bulgarian bank and deposit your initial share capital (minimum €1 for EOOD/OOD). Obtain the bank's confirmation letter.
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4
Submit to the Commercial Register
File the registration application (Form A4/A5) along with all founding documents, the bank confirmation, and proof of registered address. Standard processing takes 3–5 business days. Express processing (1 business day) is available for a higher government fee.
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5
Set up your bank account
Once registered, use your incorporation certificate and UIC number to open a business account. Wise Business and Revolut Business accept Bulgarian EOODs fully online. For traditional banking, we guide you through the full KYC process.
Registering Remotely
You do not need to visit Sofia to register your company. The entire process can be completed from anywhere using a notarised Power of Attorney (POA) that authorises our representative to act on your behalf at the Commercial Register.
Documents you'll need to provide
- → Notarised Power of Attorney (template provided by us)
- → Apostille on the POA (required for most non-EU countries)
- → Certified copy of your passport
- → Proof of address (utility bill or bank statement, translated if not in English)
- → Specimen signature declaration (signed before a notary)
Typical total timeline from signing your POA to receiving your UIC (company number): 7–14 business days, depending on apostille processing times in your country and courier delivery to Sofia.
Taxes & VAT
| Tax | Rate | Notes |
|---|---|---|
| Corporate Income Tax (CIT) | 10% | Flat rate on net profit. Lowest in EU. |
| Dividend Withholding Tax | 5% | On distributions to non-resident shareholders. Reducible by treaty. |
| VAT | 20% | Mandatory registration once turnover exceeds €51,130/12 months. |
| Personal Income Tax (if director salary) | 10% | Flat. Bulgarian residents only. |
| Capital Gains Tax | 10% | On sale of company shares or assets. |
All companies must file an annual Corporate Tax Return regardless of activity. If your turnover is nil, a nil return is still required. Micro-entities (turnover below €130,000) may file simplified accounts.
Corporate Banking
Bulgarian-registered companies can access both fintech and traditional banking. Most of our clients use fintech as their primary account and open a traditional account only when required by a counterparty.
Wise Business
Fully online application. Bulgarian EOODs accepted. Multi-currency account with local IBANs in GBP, EUR, USD. No monthly fee. Best for international payments.
Fastest to open · 1–3 daysRevolut Business
Fully online. Bulgarian-registered entities accepted. Excellent for EUR transactions within SEPA. Free plan available; paid plans unlock higher limits.
Fast to open · 2–5 daysDSK Bank / UniCredit Bulbank
Traditional Bulgarian banks. Required by some government agencies. In-person visit or notarised POA required. Full KYC/AML process applies.
Slower to open · 2–4 weeksOur Banking Assistance
We prepare your full KYC document pack, liaise with the bank, and guide you through the application for Wise, Revolut, or a traditional Bulgarian bank.
Learn more →Compliance Calendar
| Frequency | Obligation | Deadline |
|---|---|---|
| Monthly | VAT return & payment (if VAT registered) | 14th of following month |
| Monthly | Payroll & social security (if employees) | 25th of following month |
| Quarterly | Advance corporate tax instalment | 15th of month following quarter |
| Annual | Annual financial statements | 31 March |
| Annual | Corporate tax return (GDT-1) | 30 June |
| Annual | NSI statistical report (if applicable) | 31 March |
Cost Overview
All government fees and statutory costs are disclosed upfront. Our service fees are fixed — no surprises.
Government registration fees and bank charges are listed separately — always. Our fee is fixed.
Frequently Asked Questions
Can a foreigner own 100% of a Bulgarian company? +
Yes. There are no restrictions on foreign ownership. You can be the sole shareholder and director of an EOOD without being a resident or citizen of Bulgaria.
How long does the registration process take? +
Once documents are submitted to the Commercial Register, the company is typically active within 3 to 5 business days.
Can I register the company remotely? +
Yes. If you cannot travel to Sofia, you can authorize a representative via a notarized Power of Attorney to handle the submission for you. You will still need to provide the required notarized documents from your location.
What are the ongoing maintenance costs? +
Aside from your virtual office subscription, you should budget for annual tax filings and monthly accounting services. All Bulgarian companies must file an annual tax return, even if they had no activity.
Do I need a physical office space? +
You do not need to rent a physical desk or building to incorporate, but you must have a legal registered address. This address is public record and is where official government mail is sent. Our Virtual Office service provides this address instantly, keeping your personal home address private.
What is the minimum capital required? +
The statutory minimum capital for a Limited Liability Company (EOOD/OOD) is just €1. However, banks may require a higher initial deposit to cover account opening fees (we recommend depositing approx. €50-€100).
Is VAT registration mandatory? +
VAT registration is generally voluntary until your turnover reaches €51,130 over 12 consecutive months. However, if you plan to trade with other EU companies (Reverse Charge mechanism), you may need to register for VAT immediately.
What is the corporate tax rate in Bulgaria? +
Bulgaria operates a flat 10% corporate income tax (CIT) — the lowest in the EU. Dividends paid to non-resident shareholders are taxed at an additional 5% withholding tax, which may be reduced by applicable double tax treaties.