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Country guide · 2026

How to open a Bulgarian company from the United States 🇺🇸

American founders rarely come to Bulgaria for the headline rate alone; they come for an EU entity that can invoice European clients, hold an EU VAT number, and pass procurement checks that an LLC cannot. The 10% flat corporate tax is the bonus, not the whole case. What matters just as much is doing it without tripping CFC, GILTI and FBAR rules.

Reviewed 9 August 2026Checked against 2026 Bulgarian rates8 min read
American rate
21% federal corporate tax plus state tax (0% to 11.5%)
Bulgaria
10% corporate, 5% dividends
Setup
Remote, 3-7 business days

Why American founders move to a Bulgarian EOOD

  • A real EU company with a VAT number, so European clients stop treating you as a third-country supplier
  • 10% corporate tax against 21% federal plus state tax, and 5% on dividends leaving Bulgaria
  • Setup is remote from the US: no travel, about €1 of share capital, an EIK in a few business days
  • A euro-denominated base for SEPA collections instead of wiring dollars and losing 2% on conversion

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

US citizens and green card holders are taxed on worldwide income wherever they live. A Bulgarian EOOD owned by a US person is a controlled foreign corporation, so its profits can be picked up under Subpart F or GILTI even if you never distribute them. The planning question is not whether you report it, but which election (check-the-box, section 962, or GILTI high-tax exclusion) leaves the least tax.

Exit tax and leaving the United States

There is no exit tax for simply forming a foreign company, but expatriation rules under section 877A apply if you later renounce. Formation-year filings matter more: Form 5471 for the corporation, FBAR and Form 8938 for the bank accounts, and Form 926 for capital contributions.

Banking and payments

US-resident directors usually need one video call for a Bulgarian account. Most pair it with Wise Business or Revolut Business for USD and EUR, which keeps client payments in the currency they were invoiced in.

VAT on sales into the United States

Once the Bulgarian company holds a VAT number, sales to EU businesses are reverse-charged and sales to EU consumers run through OSS. That is the practical reason most US SaaS and agency owners incorporate here rather than sell from a US LLC.

Mistakes American founders make

  • Assuming a Bulgarian company shelters income from the IRS; it does not, it changes how the income is reported and taxed
  • Missing Form 5471, where penalties start at $10,000 per year per company
  • Running the company entirely from a US home office with no Bulgarian substance, which weakens the position under both US and Bulgarian rules
  • Treating the EOOD as a disregarded entity without filing the check-the-box election that makes it one

Questions American founders ask

Can a US citizen own 100% of a Bulgarian company?

Yes. Bulgaria places no nationality restriction on EOOD ownership, and non-EU founders can own and direct the company outright. The formation itself is done remotely with a power of attorney.

Will I pay tax twice?

Not usually the same dollar twice. Bulgarian corporate tax paid can generally be credited against the US tax on the same income, and the US-Bulgaria tax treaty allocates taxing rights. The result depends on your elections, which is why we model it before filing.

Is this better than a US LLC for EU clients?

For selling into the EU, generally yes. An EU VAT number removes the reverse-charge confusion, satisfies procurement rules at larger European buyers, and lets you use OSS for consumer sales.

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Start your Bulgarian company from the United States

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

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