I
Bulgaria

Bulgaria

Company Formation in Bulgaria

Bulgaria

Formation Time
3–5 business days
Min. Capital
BGN 2 (€1)
Corporate Tax
10% flat (lowest in EU)
Foreign Ownership
100%

Overview

Bulgaria offers the lowest overall tax burden in the European Union, featuring a 10% flat corporate income tax, a 10% flat personal income tax, and a 5% dividend withholding tax. Located at the crossroads of Southeast Europe, Bulgaria provides unrestricted access to the 450-million-consumer EU single market at the lowest labour and operational costs in Europe. An OOD (Limited Liability Company) or EOOD (Sole-owner LLC) can be formed with just BGN 2 (approx. €1) in registered capital. With over 70 double tax treaties, a currency strictly pegged to the Euro (BGN 1.95583 = €1) under a Currency Board arrangement, and upcoming Eurozone accession, Bulgaria is the ultimate European destination for cost-effective software development, digital marketing, logistics, and trading operations.

10% flat EU tax
€1 minimum capital
Lowest operating costs in EU
Euro-pegged currency

Why Choose Bulgaria

1

10% flat corporate tax rate — lowest corporate tax rate in the EU alongside Hungary

2

10% flat personal income tax and 5% dividend withholding tax

3

€1 (BGN 2) minimum registered share capital

4

Lowest operational, office, and skilled engineering labour costs in the EU

5

Bulgarian Lev (BGN) strictly pegged to the Euro via Currency Board

6

Full access to the European Union single market and customs union

7

70+ comprehensive double taxation avoidance agreements worldwide

8

Can be incorporated 100% remotely via Power of Attorney

Business Entity Types

EntityOwnershipDirectorsCapitalTaxBest For
OOD (Drujestvo s Ogranichena Otgovornost)100%1 managerBGN 2 (€1)10% flat corporate taxMulti-founder startups, trading companies, joint ventures
EOOD (Ednolichno OOD)100%1BGN 2 (€1)10% flat corporate taxSolo entrepreneurs, digital nomads, consultancies, holding
AD (Aktsionerno Drujestvo)100%3 (Board of Directors)BGN 50,000 (~€25,600)10% flat corporate taxLarge enterprises, financial institutions, public offerings

Step-by-Step Formation Process

1

Name Clearance & Document Preparation

1–2 days

Reserve company name and prepare Articles of Association and POA.

2

Notarisation & Capital Deposit

1–2 days

Execute POA and open temporary accumulation account for €1 capital.

3

Commercial Register Filing

2–3 days

Submit application to the Bulgarian Registry Agency (Trgovski Registar).

4

VAT & Tax Registration

1–2 weeks

Register for corporate tax, optional/mandatory VAT, and VIES for EU trade.

5

Corporate Banking

2–3 weeks

Open multi-currency corporate bank account with Bulgarian or European fintech bank.

Costs & Fees

Government / License FeeEUR 150+
Our Service FeeUSD 2,000 – 3,500
Annual RenewalUSD 1,200+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Bulgarian banks (UniCredit Bulbank, DSK Bank, Fibank) provide SEPA and SWIFT capabilities, while European EMI accounts like Wise and Revolut are fully compatible.

Account Opening Time
2–3 weeks (Faster via European digital neobanks)
Multi-Currency
Yes — multiple currencies supported

Recommended Banks

UniCredit BulbankDSK Bank (OTP Group)First Investment Bank (Fibank)Wise BusinessRevolut Business

Tax Overview

Corporate Tax
10% flat corporate income tax
Personal Income Tax
10% flat personal income tax
VAT / Sales Tax
20% (0% on intra-community EU B2B supplies; 9% on hotel accommodation)
Capital Gains Tax
10% (0% on qualifying EU/EEA regulated stock exchange sales)
Withholding Tax
5% on dividends distributed to non-residents (0% to EU parent companies)
Double Tax Treaties
70 countries

0% corporate tax applies to manufacturing companies operating in high-unemployment municipalities in Bulgaria.

Visa & Residency

Startup Visa

1 year, renewable

For high-tech and innovative business founders

Trade Representative Office (TRO) Visa

1 year, renewable (leads to permanent)

For representatives of foreign commercial entities

Family visa: AvailableProcessing: 1–2 months

Frequently Asked Questions

What is the corporate tax rate in Bulgaria and are there any surtaxes?
Bulgaria has a flat corporate income tax (CIT) rate of 10%, which is one of the lowest in the European Union. There are no additional regional or municipal surcharges on corporate profits. Furthermore, manufacturing companies operating in designated high-unemployment municipalities can qualify for a 100% corporate tax exemption (0% effective rate).
Can a Bulgarian EOOD/OOD be incorporated 100% remotely without visiting Bulgaria?
Yes. Bulgarian companies can be incorporated 100% remotely. Founders can sign the Articles of Association and Power of Attorney (POA) before a local notary with an Apostille in their home country, or at a Bulgarian embassy or consulate. Once notarized, our legal team in Sofia files the incorporation with the Bulgarian Commercial Registry.
What is the minimum registered capital required for a Bulgarian company?
The statutory minimum capital for a Bulgarian private limited company (OOD or single-member EOOD) is just 2 Bulgarian Lev (BGN 2, approximately €1). This makes Bulgaria the most affordable jurisdiction in Europe in terms of initial capital outlay.
How does VAT registration work in Bulgaria and can the company trade across the EU?
Bulgaria offers both optional and mandatory VAT registration. A Bulgarian company with an active VAT registration is entered into the European VIES database, allowing it to execute 0% intra-community B2B supplies across all 27 EU member states. Mandatory VAT registration applies if taxable turnover exceeds BGN 100,000 (~€51,100) within 12 consecutive months.
What are the withholding tax rates on dividends distributed from Bulgaria?
Dividends paid by a Bulgarian company to non-resident individual shareholders or non-EU corporate entities are subject to a flat 5% withholding tax—among the lowest in Europe. Under the EU Parent-Subsidiary Directive, dividends distributed to qualifying corporate parents in another EU member state are subject to 0% withholding tax.
Can foreign directors and shareholders open bank accounts for a Bulgarian entity?
Yes. Bulgarian companies can open multi-currency corporate bank accounts with leading domestic institutions (UniCredit Bulbank, DSK Bank, Fibank) or with major European electronic money institutions (EMIs) such as Wise Business and Revolut Business for rapid SEPA and international SWIFT transactions.