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Country guide · 2026

How to open a Bulgarian company from Czechia 🇨🇿

Czechia raised corporate tax from 19% to 21% in the 2024 consolidation package and still withholds 15% on dividends, putting the effective burden on distributed profit near 33%. Bulgaria's 10% plus 5% comes to about 14.5%, and both countries give you the same EU VAT number.

Czech rate
21% corporate tax plus 15% on dividends
Bulgaria
10% corporate, 5% dividends
Setup
Remote, 3-7 business days

Why Czech founders move to a Bulgarian EOOD

  • About 14.5% on distributed profit against roughly 33% in Czechia
  • 10% corporate tax instead of 21% after the 2024 increase
  • Euro accounting with no koruna conversion spread on EU invoices
  • Electronic filing in days rather than a notarial deed plus trade licence over two to three weeks

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

The Czech Financial Administration applies place-of-effective-management rules. A Bulgarian EOOD run day to day from Prague can be assessed as a Czech tax resident company.

Exit tax and leaving Czechia

Czechia has no general individual exit tax on shareholdings, though corporate migration of assets can be taxed. The practical risk is residency, not exit charges.

Banking and payments

Czech founders typically hold a Bulgarian account for tax and social payments and a multi-currency EMI for CZK and EUR receipts.

VAT on sales into Czechia

Both are EU VAT states, so intra-EU B2B is reverse-charged. Czech VAT is 21% against Bulgaria's 20%, relevant only for domestic consumer sales.

Mistakes Czech founders make

  • Comparing headline corporate rates only and ignoring the 15% dividend withholding
  • Keeping the s.r.o. dormant with its accounting and filing duties intact
  • Employing Czech staff through the Bulgarian company without a payroll registration

Questions Czech founders ask

How much do I actually save?

On €100,000 of profit taken as dividends, Czechia leaves roughly €67,000 and Bulgaria roughly €85,500, before accountancy costs which are also lower in Bulgaria.

Can I keep living in Prague?

You can, but then Czech residency and management-and-control rules usually pull the profit back into the Czech net. The clean version moves management with the company.

Full Bulgaria vs Czechia tax tableRun your numbers in the tax calculatorFormation pricing

Start your Bulgarian company from Czechia

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

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