Bulgarian EOOD for SaaS and Software Businesses: The Complete 2026 Guide
A Bulgarian EOOD gives software founders the lowest corporate tax rate in the EU (10%), full access to EU VAT OSS for B2C digital services, and a remote registration that takes 7–10 days. Here is exactly how the structure works for a SaaS or software business.
Why Bulgaria works well for SaaS businesses specifically
SaaS businesses have a particular profile: high margins, digital-only revenue, EU customer base, and a founder who is often location-independent. That profile maps almost perfectly onto what Bulgaria offers as a jurisdiction.
Tax efficiency that actually holds up under scrutiny
The 10% corporate tax is real — it is not a special zone, does not require minimum headcount, and does not expire. It applies to the first euro of profit and the last. Combined with a 5% dividend tax, your total effective tax on distributed profit is roughly 14.5% (10% on profit, then 5% on the after-tax remainder). Compare that to the UK (25% + 33.75% dividend), Germany (30% + 26.375% dividend), or France (25% + 30% flat tax).
For a SaaS founder distributing €150,000 annually, the difference between Bulgaria and a UK structure is approximately €30,000–€40,000 per year in legal tax savings — before any advisory fees.
EU VAT One Stop Shop access
If you sell digital services (SaaS subscriptions, software licences, API access) to consumers in EU countries, you are required to charge local VAT rates and remit them to each country's tax authority — unless you use the VAT OSS scheme. A Bulgarian VAT registration gives you OSS access: you file a single quarterly return with the Bulgarian NRA, and they distribute the VAT to the relevant EU member states. No separate registrations in Germany, France, the Netherlands, etc.
The VAT registration threshold in Bulgaria for OSS purposes is BGN 100,000 (~€51,130) annual turnover, or voluntary registration below the threshold — which is often sensible for B2B businesses that want VIES recognition for zero-rating intra-EU invoices.
No withholding tax on payments to founders in most treaty countries
Bulgaria has double tax treaties with over 60 countries. Most reduce dividend withholding tax to 5% or 10% (the domestic rate is already 5%). Importantly, there is typically no withholding tax on management fees or royalties paid to residents of treaty countries — which matters for software founders who may want to charge management fees from a holding structure.
Banking that works for SaaS revenue
A Bulgarian EOOD can hold accounts with Revolut Business, Wise Business, and Payhawk — all support SEPA and international SWIFT. Stripe, Paddle, Lemon Squeezy, and PayPal all pay out to Bulgarian entities. For high-volume SaaS with merchant acquiring needs, traditional Bulgarian banks (UniCredit Bulbank, Postbank) handle merchant accounts.
How the structure looks in practice
Legal entity
EOOD (single-member LLC equivalent). You are sole owner and manager. No co-founder required, no minimum share capital beyond BGN 2 (~€1). Full liability protection — your personal assets are separate from company debts.
Invoicing
Issue invoices in any currency. EU B2B invoices to VAT-registered customers use reverse charge (zero-rated, customer accounts for VAT). B2C digital services use OSS VAT. Non-EU invoices (US, UK, etc.) are outside EU VAT scope entirely.
Payment processors
Stripe Atlas is not needed — you apply to Stripe directly as a Bulgarian entity. Paddle and Lemon Squeezy work as merchant of record if you prefer to outsource EU VAT compliance entirely. Both support Bulgarian entities.
IP ownership
Your software IP can be owned by the Bulgarian EOOD directly. There is no IP box regime in Bulgaria (unlike Cyprus or Netherlands), but the flat 10% rate on all profit makes a separate IP regime largely unnecessary for most SaaS founders.
Hiring contractors
You can pay contractors globally from the company. Bulgarian labour law does not apply to non-Bulgarian contractors. Keep standard contractor agreements; the company deducts contractor payments as a business expense.
Fundraising note
If you plan to raise from institutional VC (US or UK funds in particular), discuss structure early. Most EU VCs are comfortable with Bulgarian entities; US funds sometimes prefer Delaware. A Bulgarian EOOD can be converted or redomiciled later, but it is easier to plan ahead.
Bulgaria vs other popular SaaS jurisdictions
| Factor | Bulgaria | Estonia | Ireland | Cyprus |
|---|---|---|---|---|
| Corporate tax on profit | 10% | 0% retained / 20% distributed | 12.5% | 12.5% |
| Dividend tax | 5% | 0% (included above) | 25–40% | 0% |
| Remote registration | Yes | Yes (e-Residency) | Yes | Yes |
| Registration cost | €299 | €500–€1,500 | €700–€2,000 | €800–€2,500 |
| Annual compliance cost | €750–€1,500/yr | €1,500–€3,000/yr | €2,500–€5,000/yr | €2,000–€4,000/yr |
| Eurozone (2026) | Yes (Jan 2026) | Yes | Yes | Yes |
| VAT OSS access | Yes | Yes | Yes | Yes |
Estonia note: the 0%/20% split means zero tax if you retain profits in the company, 20% when distributed. For a SaaS founder who distributes regularly, Bulgaria's 14.5% effective rate beats Estonia's 20% on distributions.
What Bizport EU handles for SaaS founders
Frequently asked questions
Can I use a Bulgarian company to sell SaaS to EU customers?
Yes. A Bulgarian EOOD is a full EU legal entity and can invoice EU customers just like a German GmbH or French SARL. You can register for EU VAT One Stop Shop (OSS) to handle B2C digital services tax across all 27 member states from a single Bulgarian VAT number.
Does Bulgaria tax SaaS revenue differently from other income?
No — all corporate profit is taxed at the flat 10% rate. There is no separate regime for software IP or digital services; the 10% rate applies uniformly. Dividends distributed to the owner are taxed at an additional 5%.
Can Stripe and Paddle pay out to a Bulgarian company bank account?
Yes. Both Stripe and Paddle support Bulgarian entities. You will need a Bulgarian IBAN (from a traditional bank or EMI such as Revolut Business) to receive payouts. The company's EU VAT number is used for tax-exempt B2B invoices within the EU.
Do I need to be physically present in Bulgaria to run a SaaS company there?
No. The registration is fully remote via Power of Attorney. Day-to-day operations require no physical presence. Your virtual office address in Sofia satisfies the registered office requirement. Banking is handled via EMI (Revolut Business, Wise) remotely.
What about substance requirements — does Bulgaria require local staff?
Bulgaria has no minimum headcount or substance requirement for EOOD registration or tax residency. However, your personal tax situation in your country of residence matters: if you are tax-resident in Germany or France, those countries may seek to tax your Bulgarian company's profits under CFC rules. Consult a local tax advisor in your country of residence before proceeding.
Register your SaaS company in Bulgaria
€299 flat fee, fully remote, 7–10 business days. Includes bilingual documents, NRA registration, and virtual office. Or book a free 30-minute call first if you have questions about your specific situation.
Also read: Best EU country for company registration · EU company as non-resident · Bulgaria vs Estonia