Bulgaria Company Setup logoBulgaria Company Setup
All country guides

Country guide · 2026

How to open a Bulgarian company from Canada 🇨🇦

Canadian founders selling into Europe hit two walls: combined corporate rates near 26.5% once provincial tax is added, and European clients who prefer an EU counterparty with a VAT number. A Bulgarian EOOD solves the second and cuts the first to 10%, provided the Canadian side is handled properly.

Reviewed 9 August 2026Checked against 2026 Bulgarian rates8 min read
Canadian rate
~26.5% combined federal and provincial (15% federal + provincial)
Bulgaria
10% corporate, 5% dividends
Setup
Remote, 3-7 business days

Why Canadian founders move to a Bulgarian EOOD

  • 10% corporate tax against roughly 26.5% combined federal and provincial on general active income
  • 5% withholding on dividends leaving Bulgaria, versus Canadian personal rates on eligible dividends above 39%
  • An EU VAT number and euro banking, so European invoices no longer carry FX and reverse-charge friction
  • Remote incorporation with about €1 of share capital and no travel required

The remote registration process, step by step

  1. 1

    Reserve the company name

    We check availability in the Bulgarian Commercial Register and reserve your EOOD or OOD name. Takes a few hours; the reservation holds for six months.

  2. 2

    Sign the incorporation pack

    Articles of association, founder declarations and specimen signature. You sign in front of a notary or a Bulgarian consulate near you, or you give us a power of attorney and sign once.

  3. 3

    Open the capital accumulation account

    The statutory minimum share capital is BGN 2 (about €1). The bank issues a deposit certificate the register requires.

  4. 4

    File with the Commercial Register

    Electronic filing at the Registry Agency. Standard processing is 2 to 4 business days, and you receive an EIK (company number) on approval.

  5. 5

    Register for tax and, if needed, VAT

    The EIK doubles as your tax number. VAT registration is mandatory above the BGN 166,000 turnover threshold and voluntary below it; intra-EU sellers usually register voluntarily on day one.

  6. 6

    Open the operating bank account

    A Bulgarian business account for local payments, plus an EMI such as Wise or Revolut Business for multi-currency invoicing. Most non-resident directors need one video call.

  7. 7

    Appoint an accountant and start filing

    Monthly VAT returns, payroll if you hire, and an annual corporate return filed by 30 June. The 10% flat corporate tax applies from your first invoice.

Tax residency

Canada taxes residents on worldwide income and applies central management and control tests: a Bulgarian company directed from Toronto can be deemed a Canadian resident corporation. The FAPI rules can also attribute passive income of a controlled foreign affiliate back to you annually.

Exit tax and leaving Canada

Emigrating from Canada triggers a deemed disposition of most property at fair market value, including private company shares. Founding the Bulgarian company before value accrues is usually far cheaper than moving a mature holding later.

Banking and payments

Canadian directors typically complete one video verification call for a Bulgarian account, and hold Wise or Revolut Business alongside it for CAD, USD and EUR.

VAT on sales into Canada

Bulgarian VAT registration lets you reverse-charge EU B2B sales and use OSS for EU consumer sales. GST/HST obligations in Canada continue for anything you still supply there.

Mistakes Canadian founders make

  • Overlooking T1134 information returns for foreign affiliates, which carry their own penalties
  • Directing the Bulgarian company from a Canadian home office and assuming residency follows registration
  • Forgetting that departure from Canada is itself a taxable event for shares

Questions Canadian founders ask

Can I keep living in Canada and run a Bulgarian company?

You can own it, but if it is managed from Canada the CRA can treat it as Canadian-resident and tax its worldwide income. The saving is real when management and substance sit in Bulgaria.

Do I need to be in Bulgaria to incorporate?

No. We register the EOOD on a notarised power of attorney; most Canadian founders never travel for the formation itself.

All jurisdiction tax comparisonsRun your numbers in the tax calculatorFormation pricing

Start your Bulgarian company from Canada

We handle the register filing, bank introduction, VAT and accounting in English. 750+ EU founders incorporated, fully remote.

Book a free consultation Free setup checklist

Other country guides

From the Netherlands 🇳🇱From Germany 🇩🇪From France 🇫🇷From Belgium 🇧🇪
Book a free call - reply in 1 day