Bulgaria company registration: the complete 2026 guide for foreigners

Bulgaria has quietly become the most pragmatic EU jurisdiction for foreign founders. A 10% corporate tax, EU membership since 2007, full passporting rights, low cost of compliance, and a remote-friendly registration process. This is the complete picture.

Why Bulgaria?

• 10% flat corporate tax — the lowest in the European Union
• 5% dividend tax on distributions
• Full EU market access — Schengen since 2025, eurozone candidate
• Minimum share capital of 2 BGN (≈ €1) — no real capital lock-up
• Remote registration possible — 95% of our clients never visit
• English-speaking professional services in Sofia and Varna
• EU VAT VIES system — full B2B passporting

Who it's a fit for

Bulgaria works particularly well for:

• EU-based digital businesses (SaaS, e-commerce, consulting, agencies)
• Non-EU founders needing an EU base for regulatory or commercial reasons
• Founders looking to move personal residency to a low-tax EU country
• Holding structures over operating subsidiaries in higher-tax EU states

It's a poor fit for:

• Businesses requiring a specific industry licence only available in another country
• Founders whose home country has aggressive CFC (Controlled Foreign Company) rules they haven't addressed
• Anyone looking for a "no-substance" mailbox — Bulgaria is real-tax, real-substance

The three real costs

People often see "€399 registration" and assume that's the whole cost. The realistic year-one numbers:

• Setup: €399 – €1,299 depending on the package (see pricing)
• Monthly accounting: €100 – €250 for a typical SME
• Annual filing: ~€200 – €400 for the annual report and tax return

That's it. No franchise tax. No annual government fees beyond the standard renewal.

Registration timeline

Day	Step
0	Free consultation, package chosen
1–2	Documents prepared, name reserved
3	You sign the Power of Attorney (at your embassy or local notary)
4	Capital account opened, share capital deposited
5	Notary signing (in person or via attorney)
6	Filing with the Commercial Register
7–10	UIC issued — company is live
10–20	Operating bank account, VAT registration, VIES verification

See the step-by-step OOD registration guide for the full mechanics.

Choosing the structure

For 9 in 10 founders, the right answer is an EOOD (single shareholder). For partnerships and investor-held companies, an OOD. Tax treatment is identical — full breakdown in our EOOD vs OOD guide.

Tax — what you actually pay

• Corporate tax: 10% flat on profit
• Dividend tax: 5% on distributions to individual shareholders (5% to non-EU shareholders unless a tax treaty reduces it further; 0% to EU corporate shareholders under the Parent-Subsidiary Directive)
• VAT: 20% standard rate, 9% reduced for hotels and certain books
• Personal income tax: 10% flat (relevant if you become Bulgarian tax-resident)
• Social security: capped — even high-earning directors pay a fixed maximum

A €100,000 profit company distributing 100% of net profit yields:

• Corporate tax: €10,000
• Net profit: €90,000
• Dividend tax: €4,500
• In your pocket: €85,500
• Effective rate: 14.5%

Try your own numbers in the tax calculator.

VAT registration

Mandatory above 100,000 BGN of annual taxable turnover. Most B2B-focused foreign companies register voluntarily on day one to access VIES and issue reverse-charge invoices. Full timeline in the VAT guide.

Banking

The hardest single step in the process. Bulgarian banks must KYC the director — usually in person, sometimes via video. Foreign-friendly options: UniCredit Bulbank, DSK Bank, Postbank. Neo-bank alternatives: Wise Business and Revolut Business — see our Wise vs Revolut for a Bulgarian company comparison. Full walkthrough in our non-resident banking guide.

Substance and CFC considerations

Bulgaria is a real EU jurisdiction, not an offshore. But that does not mean home-country CFC rules disappear. Before you incorporate:

• Have a clear answer for where the management and control actually sits
• Plan for at least one director-resident day in Bulgaria per quarter, or genuine local substance (employees, office, suppliers)
• Coordinate with your home-country tax advisor — especially in Germany (Wegzugsbesteuerung), the Netherlands (exit tax), France (exit tax), and the US (PFIC / Subpart F)

We work alongside your home-country advisor — we don't replace them.

Common mistakes

• Treating Bulgaria like an offshore. It isn't. Substance matters.
• Skipping the apostille step on the Power of Attorney. Costs you a week of delay.
• Not registering for VIES. Then wondering why EU B2B clients won't pay you.
• Choosing the wrong package. A solo founder doesn't need our Ongoing package; a 7-figure operator should not pick Essentials.

Next steps

• Estimate your tax: Bulgaria tax calculator
• Compare to your current jurisdiction: Bulgaria vs other EU countries
• Read a real case study: Case studies
• Talk to us: Free consultation