Business type guide · 2026

Bulgarian company for recruitment and staffing agencies

Recruitment is a services business with high revenue per head and almost no capital, so the tax rate on retained profit matters more than anything else on the balance sheet. A Bulgarian EOOD invoices EU clients under reverse charge and keeps 90% of the placement fee before distribution.

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 recruitment and staffing agencies

Placement and retainer fees to EU business clients are reverse-charged, so no Bulgarian VAT sits on the invoice and there is nothing to reclaim at the client end.
10% corporate tax on fee income leaves far more cash for recruiter commission and job board spend than a 25-30% home rate.
Bulgaria has a deep, low-cost pool of sourcing and admin staff if you want part of the delivery team in-country, which also strengthens substance.
Job board subscriptions, ATS licences, LinkedIn Recruiter seats and travel are deductible against the 10% base.

VAT

Fees to VAT-registered EU businesses are reverse-charged and reported through VIES. Fees to non-EU clients are outside the scope. Where you place a candidate does not change the VAT treatment; the client's establishment does.

Substance and residency

If your recruiters sit in one country and only the invoicing sits in Bulgaria, that country will argue there is a permanent establishment and tax the profit locally. The clean versions are either recruiters employed by the Bulgarian entity, or a genuine relocation of the people who close the deals.

Paying yourself

Agencies usually run a management salary for the owner plus commission-based employment contracts for recruiters, then distribute the residual profit as a 5% dividend after the annual accounts.

What it costs

Formation from €890 one-off, then roughly €100-200 a month for accounting, more once you run Bulgarian payroll.

Full pricing

Mistakes recruitment and staffing agencies make

Employing recruiters in a high-tax country through the Bulgarian entity without registering as an employer there.
Treating contractor placements as pure agency income when the contract makes you the employer of record.
Missing VIES filings on reverse-charged fees, which is the most common penalty notice in this sector.

Frequently asked

Can the EOOD employ recruiters outside Bulgaria?

Only through a local payroll registration or an employer of record in that country. A Bulgarian contract does not exempt you from local employment and social security law.

Does placing candidates in Germany create German tax?

Placing a candidate does not, by itself. Having your own people habitually working in Germany can, through the permanent establishment rules.

Is a Bulgarian licence required for staffing?

Temporary work agency activity in Bulgaria is a regulated, registered activity. Pure permanent-placement recruitment for foreign clients generally is not.

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