Business type guide · 2026

Bulgarian company for real estate investors

Property is the one asset class where a low-tax holding company usually does not move the tax bill, because rental income and gains are taxed where the building stands. A Bulgarian EOOD is still useful, but for narrower reasons than most people expect, and it is worth being honest about which ones.

Reviewed 9 August 2026Checked against 2026 Bulgarian rates7 min read

Corporate tax: 10% flat
Dividends: 5% withholding
Setup: Remote, 3-7 business days

Why it fits real estate investors

Bulgarian-situated property held in an EOOD pays 10% on net rental profit and 10% on gains, against personal rates elsewhere in the EU that reach 40-50%.
An EOOD can hold shares in foreign propcos, receive dividends from EU subsidiaries free of withholding under the Parent-Subsidiary Directive and reinvest at 10%.
Financing costs, depreciation, management fees, insurance and renovation are deductible against the 10% base, which personal ownership in many countries restricts.
Transferring shares in the company is simpler than transferring the property itself when you eventually exit or bring in a partner.

VAT

Sales and leases of old residential buildings are generally VAT-exempt in Bulgaria, with an option to tax. New buildings and land for construction are taxable at 20%. Getting the option-to-tax decision right at acquisition determines whether you can recover VAT on the purchase and the works.

Substance and residency

For property outside Bulgaria, the situs country taxes the rent and the gain first under nearly every double tax treaty, and a Bulgarian company does not change that. What the structure can do is govern what happens to the after-tax profit once it has left the property's country.

Paying yourself

Rental profit taxed at 10% inside the company, then 5% on distribution, works out at roughly 14.5% for Bulgarian property. Foreign property is taxed abroad first, with Bulgarian credit relief applied on top.

What it costs

Formation from €890 one-off, then roughly €90-180 a month, depending on the number of units and whether VAT applies.

Full pricing

Mistakes real estate investors make

Assuming a Bulgarian holding company shelters rental income from German, French or Spanish property. It does not.
Missing the option-to-tax election on an acquisition and losing the input VAT recovery on renovation.
Underestimating local property and municipal taxes, which are levied regardless of the corporate rate.

Frequently asked

Can a foreigner buy Bulgarian property through an EOOD?

Yes, and for agricultural land a company is the usual route. Buildings and apartments can also be bought personally by EU nationals.

Does a Bulgarian company reduce tax on my Spanish rental?

No. Spain taxes the rental income and any gain because the property is there. Bulgaria then gives credit relief so you are not taxed twice.

How are capital gains on property taxed?

Inside an EOOD, gains on Bulgarian property form part of ordinary profit at 10%, with 5% on distribution.

Guides by home country Tax calculator What an EOOD actually is Country tax comparisons

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