Business type guide · 2026

Bulgarian company for traders and investors

Trading through a company changes the arithmetic in both directions. Gains are taxed at 10% instead of a personal capital-gains rate, but taking money out adds 5%, and one important Bulgarian exemption for personal share disposals works differently inside a company. Which side wins depends on whether you compound or withdraw.

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

Why it fits traders and investors

Trading profit is taxed at 10% at the company level, and losses can be carried forward against future profit for up to five years.
Data feeds, platform fees, research subscriptions, interest costs and professional advice are deductible, which they usually are not personally.
Compounding inside the company means only one 10% layer until you actually distribute.
Several strategies or asset classes can sit in one entity with clean, auditable books.

VAT

Trading on own account for your own gain is generally outside the scope of VAT. Managing money for other people is a different business entirely and brings both VAT questions and financial-services licensing.

Substance and residency

Where trading decisions are made is the whole question. A company that trades from your laptop in a high-tax country is exposed to that country's management-and-control or controlled-foreign-company rules, and investment income is precisely what CFC regimes are written to catch.

Paying yourself

If you withdraw every year, the combined 14.5% may be worse than some personal regimes. If you compound and withdraw rarely, the deferral at 10% is the point of the structure.

What it costs

Formation from €890; accounting €100-250 a month, higher where broker statements carry heavy transaction volume.

Full pricing

Mistakes traders and investors make

Assuming the exemption for disposals on EU-regulated markets applies the same way inside a company as it does personally. It does not, and this is the single most common misunderstanding.
Ignoring your own country's controlled-foreign-company rules on passive income.
Mixing personal and company brokerage accounts, which makes the accounts unauditable.

Frequently asked

Are share disposals tax free in a Bulgarian company?

The exemption for disposals on EU-regulated markets is a personal income tax rule and does not simply carry across to corporate profit. Company trading gains form part of taxable profit at 10%. Get advice on your specific instruments.

How is crypto trading treated?

As ordinary company profit at 10%, measured in the reporting currency. See the crypto and Web3 guide for the licensing and MiCA side.

Is a company better than trading personally?

For compounding and for deducting real costs, usually yes. For withdrawing everything every year, the extra 5% dividend layer can outweigh the benefit.

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

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