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Country guide · 2026

How to open a Bulgarian company from the United Kingdom 🇬🇧

Since the main corporation tax rate moved to 25% and the dividend allowance shrank to £500, British owner-managers pay materially more on the same profit than they did five years ago. Bulgaria's 10% corporate and 5% dividend rates are the single largest gap we model for UK founders, and post-Brexit an EU entity often solves a client-facing problem as well as a tax one.

British rate
25% main rate (19% small profits) plus 8.75% to 39.35% on dividends
Bulgaria
10% corporate, 5% dividends
Setup
Remote, 3-7 business days

Why British founders move to a Bulgarian EOOD

  • 10% corporate tax against a 25% main rate once profits pass £250,000
  • 5% withholding on dividends instead of 33.75% or 39.35% for higher and additional rate shareholders
  • An EU-resident company with an EU VAT number, which removes the post-Brexit friction on intra-EU sales
  • No Companies House confirmation statement, PSC register upkeep or UK payroll RTI cycle

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 UK taxes companies that are centrally managed and controlled from Britain, regardless of where they are registered. If you remain UK resident and run the EOOD from London, HMRC can treat it as UK resident. The structure works when you genuinely move, or when the Bulgarian entity has its own management and staff.

Exit tax and leaving the United Kingdom

The UK has no general exit charge on individual shareholdings, but temporary non-residence rules can pull dividends taken during a short absence back into charge if you return within five tax years. Plan the distribution timeline around that window.

Banking and payments

British founders typically pair a Bulgarian account with Wise or Revolut Business for GBP collections, since a BG IBAN alone cannot receive Faster Payments.

VAT on sales into the United Kingdom

Post-Brexit, UK sales are outside EU VAT: B2B services to UK clients are outside the scope with the customer accounting locally, and goods movements need customs paperwork. Selling into the EU from a Bulgarian VAT number is far simpler than from a UK company.

Mistakes British founders make

  • Running the Bulgarian company from a UK desk and assuming registration alone decides residence
  • Taking large dividends during a short period abroad and falling foul of temporary non-residence
  • Leaving the UK limited company dormant without filing, which triggers penalties and strike-off

Questions British founders ask

Can a UK resident own a Bulgarian EOOD?

Yes, 100% ownership by a British national or UK resident is allowed and Brexit changed nothing about foreign ownership. The tax question is where the company is managed, not who owns it.

Do I still need a UK company for UK clients?

Rarely. UK clients can pay a Bulgarian company directly, and B2B services are usually outside the scope of EU VAT with the UK client accounting under reverse charge.

Full Bulgaria vs the United Kingdom tax tableRun your numbers in the tax calculatorFormation pricing

Start your Bulgarian company from the United Kingdom

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

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