Bulgaria tax facts 2026

Bulgaria's flat corporate income tax — the lowest in the EU (tied with Ireland's trading rate on paper, but Ireland taxes passive income at 25%).

Flat rate since 2007; no small-company discount because none is needed.

Source: Corporate Income Tax Act, Art. 20 (Bulgaria)

Bulgarian dividend withholding tax on distributions to individuals.

0% between EU companies under the Parent-Subsidiary Directive if the 10% holding threshold is met.

Source: Personal Income Tax Act, Art. 38 (Bulgaria)

Total effective tax on €100k of profit taken as dividends from a Bulgarian EOOD.

€10k CIT + €4.5k dividend tax (5% of €90k). Compares to ~47% in Germany and ~44% in the Netherlands on the same profit.

Source: Bulgaria Company Setup calculator, 2026

Standard VAT rate in Bulgaria — mid-pack in the EU (lowest 17% in Luxembourg, highest 27% in Hungary).

Reduced 9% rate on restaurants, tourism accommodation, books; 0% on intra-EU B2B supplies.

Source: VAT Act, Art. 66 (Bulgaria)

Bulgaria's VAT registration threshold (~€84,900) as of 2026.

Raised from BGN 100,000 in 2023. Voluntary registration is available below the threshold.

Source: VAT Act, Art. 96 (Bulgaria)

Minimum share capital for a Bulgarian OOD/EOOD (~€1).

Compared to €25,000 for a German GmbH, €12,000 for a Luxembourg SARL, €10,000 for an Italian SRL.

Source: Commerce Act, Art. 117 (Bulgaria)

Typical timeline to register a Bulgarian EOOD end-to-end.

1 day name reservation, 1 day notarisation, 3-5 days commercial register review, then bank account setup.

Source: Bulgaria Company Setup operational data, 2020-2026

Maximum monthly base for Bulgarian social security contributions in 2026 (~€2,110).

Combined employer + employee rate ~32.8%. Total cap ~€8,300/year in contributions per employee.

Source: Social Security Code, monthly max insurable earnings 2026 (NSSI, Bulgaria)

Bulgarian minimum monthly wage in 2026 (~€620).

Increased from BGN 1,077 in 2025. Sets the floor for social security calculations.

Source: Council of Ministers Decree, wage adjustment 2026

Bulgarian capital gains tax on shares of EU-regulated exchanges held by individuals.

Applies to shares traded on regulated markets in the EU/EEA. Private company shares taxed at 10%.

Source: Personal Income Tax Act, Art. 13 (Bulgaria)

Foreign ownership permitted in a Bulgarian OOD/EOOD.

No residency, EU citizenship, or local director requirement. Non-EU founders own the entity outright.

Source: Commerce Act (Bulgaria)

Typical annual accounting cost for a small Bulgarian EOOD in 2026.

€40-75/month depending on transaction volume and VAT status. Includes annual filing and payroll for one owner.

Source: Bulgaria Company Setup market survey, Q4 2025

Bulgarian tax residency threshold — physical presence in a calendar year.

Also triggered by 'centre of vital interests' in Bulgaria. Non-residents pay Bulgarian tax only on Bulgaria-sourced income.

Source: Personal Income Tax Act, Art. 4 (Bulgaria)

Double tax treaties Bulgaria has in force as of 2026.

Includes all EU/EEA states, UK, US, Canada, UAE, Singapore, most of Latin America and Southeast Asia.

Source: Bulgarian National Revenue Agency treaty list

Estimated foreign direct investment into Bulgaria in 2024.

IT, business process outsourcing and manufacturing lead by sector; Germany, the Netherlands and Switzerland lead by origin.

Source: Bulgarian National Bank / InvestBulgaria Agency, 2024 figures

Bulgarian lev pegged to the euro via currency board since 1997.

Bulgaria is scheduled to adopt the euro on 1 January 2026 — the peg means no currency risk during setup.

Source: Bulgarian National Bank; European Council decision, 2025

Bulgaria's euro adoption date.

The lev remains legal tender in parallel for one month; all corporate accounts and filings convert automatically at the fixed rate.

Source: European Council Regulation (EU) 2025/xxxx

One-time cost to register a Bulgarian EOOD through a professional service in 2026.

Includes state fees (~€45), notary fees (~€25 per signature), translations, first year's registered address, and legal drafting.

Source: Bulgaria Company Setup pricing

Bulgarian withholding tax on interest and royalties paid to EU-associated companies.

Under the EU Interest and Royalties Directive when the 25% ownership + 2-year holding conditions are met. Otherwise 10%.

Source: Corporate Income Tax Act, Art. 200a (Bulgaria)

Bulgarian OOD paid-in capital required at incorporation.

BGN 2 minimum, paid in full at registration. There is no additional 'called-up capital' schedule.

Source: Commerce Act, Art. 117 (Bulgaria)