Establishing a company in Bulgaria has always been straightforward and cost-efficient, and recent economic changes have further enhanced its appeal for business owners. Notably, as of January 1, 2026, Bulgaria has officially adopted the Euro (EUR) as its national currency, replacing the Bulgarian Lev (BGN). This long-awaited transition is expected to create opportunities for improved financial stability, economic growth and increased foreign investment. Аdopting the Euro eliminates currency volatility, simplifies cross-border transactions, and enhances alignment with the EU’s financial infrastructure.
At the same time, full accession to the Schengen Area has significantly improved the movement of goods and reduced transport costs, positioning Bulgaria as a strategic logistics hub within the European Union. Combined with one of the lowest corporate tax rates in the EU and competitive operating costs, these factors make Bulgaria increasingly attractive for international business and reinforce its reputation as the “New Ireland” of Eastern Europe.
- Bulgaria offers one of the lowest tax rates in the EU - 10% corporate tax, 10% dividend tax, and a minimal capital requirement of €1.
- Company registration is a fast and straightforward process, usually taking between 5 and 10 working days, and can also be done remotely.
Why register a company in Bulgaria?
Over the past years, Bulgaria has increasingly attracted international entrepreneurs looking for a stable and cost-efficient base within the European Union. That’s why we’re looking into some of the biggest benefits and motivations to register a company in Bulgaria:
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Tax efficiency
With a flat 10% corporate income tax and a 10% dividend tax, Bulgaria’s tax system is one of the most competitive in the European Union. No local corporate taxes or capital duties apply, which supports efficient long-term tax planning for both EU and non-EU investors.
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Operational costs
Running a business in Bulgaria is still relatively affordable compared to most Western European countries. Even in the capital, Sofia, key operating costs, including office rent, payroll and professional services, remain cost-competitive. This gives companies the opportunity to scale efficiently while still maintaining EU standards and compliance.
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Venture capital scene
Bulgaria has seen a steady raise in startup companies over the past decade, with EU-backed venture capital funds, private investors, and regional funds focusing on sectors such as technology, fintech, logistics and SaaS. Euro adoption could further enhance access to financing by aligning the country with Eurozone standards.
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Asset ownership
A Bulgarian company can own real estate, intellectual property, vehicles, and other assets within Bulgaria and across the EU. For non-EU nationals, company formation is often the most practical structure for holding assets and conducting long-term business activities.
Types of companies in Bulgaria
Bulgaria offers several legal forms for company registration, each suited to different business needs and ownership structures.
EOOD
The EOOD is a single-member limited liability company. This is the most common choice for individual entrepreneurs given the fact that it requires only one shareholder and minimal share capital. Liability is limited to the company’s assets, making it suitable for consultants, freelancers, and small businesses.
OOD
The OOD is a limited liability company with two or more shareholders, offering flexible internal governance and clear shareholder arrangements. This structure is widely used by startups, partnerships, and family-owned businesses.
VCC
The Variable Capital Company allows flexible capital increases, simplified share transfers, and investment instruments commonly used in funding rounds. The VCC aligns Bulgarian company law with modern startup standards.
AD
The Joint Stock Company is intended for larger enterprises, regulated industries and companies planning to attract institutional investors. While it involves higher capital requirements and stricter governance, it offers credibility and scalability.
Do you need legal advice and assistance? Contact our experienced lawyers.
How to register a company in Bulgaria?
Company registration in Bulgaria involves several clear and standardized steps:
- First, you need to reserve a unique company name with the Bulgarian Commercial Register.
- Then, you have to prepare the incorporation documents, including the Articles of Association and management resolutions.
- The next step is to open a temporary bank account in the company’s name and deposit the share capital.
- You will then need to notarize the required signatures, either in Bulgaria or through a power of attorney.
- Finally, all documents are filed electronically with the Commercial Register. Once they are approved, the company will be officially registered.
The entire process is usually completed within 5 to 10 business days, depending on how quickly the documents are prepared and processed by the Commercial Register.
Post-registration obligations
Once incorporated, the company must comply with ongoing legal and tax requirements. First, you must register for VAT once your company’s annual turnover exceeds €51,130. However, this can also be done voluntarily earlier if you believe it will be beneficial for your business.
There is also a requirement for social security contributions which apply to company directors and employees. These contributions are calculated based on a minimum monthly insurable income of approximately €550.66.
Annually every company has to file financial statements and corporate tax returns.
Taxes in Bulgaria
In Bulgaria corporate income tax is levied at a flat rate of 10%, applying to the company’s annual profit. Given that profits are distributed to shareholders, a dividend tax of 10% is also applied.
In addition, Value Added Tax, also known as VAT, is normally charged at a rate of 20% on most goods and services. For some specific sectors the rates are reduced.
Expert assistance by Danailova, Todorov & Partners
For foreign entrepreneurs, professional legal support is highly recommended. This can prevent delays, penalties and complications and ensure full compliance to Bulgarian company law, tax rules, and administrative procedures.
Danailova, Todorov & Partners provide full legal and corporate assistance tailored to international clients, ensuring comprehensive support in company formation, corporate structuring, tax and VAT compliance, and ongoing legal matters.
FAQ Section
Can a non-resident open a company in Bulgaria?
Yes. There is no requirement to be a Bulgarian resident in order to open and operate a company. However, you will need a registered office address in Bulgaria and a local bank account.
How to check if a company is registered in Bulgaria?
You can verify any company through the official Bulgarian Commercial Register website. By entering the company name or registration number (EIK), you can view its legal status, directors, ownership, and financial filings.
Does Bulgaria have double taxation agreements with other countries (including the UK)?
Yes. Bulgaria has double taxation treaties with over 70 countries, including the United Kingdom. This helps prevent the same income from being taxed twice.
Can you register a company in Bulgaria remotely?
Yes. A company can be registered remotely through a power of attorney.
What is the minimum share capital required in Bulgaria?
The minimum share capital for an OOD or EOOD is only €1. This makes Bulgaria one of the most accessible countries in Europe for starting a business.
If you need help and more information, contact our highly qualified and experienced lawyers. We will help you with all legal matters.
