Bulgaria company formation for non-residents

Why founders choose Bulgaria

Bulgaria's 10% flat corporate tax is one of the lowest headline rates in the EU. For a company that really operates from Bulgaria, with staff or a founder living there, that rate is hard to match inside the EU.

Running costs are low too. Accounting, office space and salaries cost less than in most EU countries, and since 1 January 2026 the company trades and reports in euro.

Bulgaria is not a letterbox option. A company managed from another country may be taxed there, and banks look closely at companies with no local activity.

Corporate tax, VAT and the euro

Companies pay 10% corporate tax on annual profit, under the Corporate Income Tax Act. The annual tax return is filed with the National Revenue Agency (NRA) between 1 March and 30 June of the following year, and the balance of tax is due by 30 June.

Companies above certain turnover levels pay advance instalments during the year, quarterly or monthly. Returns are filed electronically with a qualified electronic signature, which your accountant can hold.

Dividends paid to individuals and to foreign shareholders carry a 5% withholding tax, as of September 2026 (National Revenue Agency). The draft 2026 budget proposed 10%, but that rise was dropped. A tax treaty or the EU parent-subsidiary rules can lower the rate for company shareholders.

VAT is 20% at the standard rate. Registration becomes mandatory above a turnover threshold, and earlier for some cross-border EU transactions.

Bulgaria joined the euro area on 1 January 2026. The lev converted at the fixed rate of BGN 1.95583 per euro. Share capital, invoices, accounts and NRA filings are now in euro.

For owners this removes currency risk inside the EU. A company invoicing German or French clients now bills and banks in the same currency it reports in.

• Corporate tax: 10% flat
• Annual return: 1 March to 30 June
• VAT: 20% standard
• Currency: euro since 1 January 2026

How formation works

An EOOD has one owner and an OOD has two or more. The owner adopts a founding decision (or the owners sign articles), appoints a manager and sets the share capital. The legal minimum is nominal: €1 since the euro changeover, replacing BGN 2 (Commerce Act, art. 117; confirm with your specialist). Most founders choose a small round amount.

The manager signs a consent and a specimen signature, both with notarised signatures. You can sign in your home country with an apostille, or give us a power of attorney. The capital is paid into a Bulgarian bank, which issues a certificate.

We file everything with the Commercial Register at the Registry Agency. Once registered, the company gets a unified identification code (UIC) that also serves as its tax number. We quote 1–2 weeks after KYC approval.

The FATF listing and banking

Bulgaria is on the FATF list of jurisdictions under increased monitoring as of June 2026. This does not stop you forming or running a company. It does mean some banks and payment providers outside Bulgaria apply enhanced due diligence to Bulgarian companies.

In practice you may be asked for more documents on source of funds and on the company's real activity. We tell you which banks and EMIs apply extra checks before you pay, introduce suitable institutions and prepare the application. The bank decides.

Managers, registers and annual accounts

One manager is enough. The manager can be any adult of any nationality, with no residency rule, and can also be the owner. Tax residence follows where the company is managed, so plan where decisions are taken (confirm with your specialist).

The Commercial Register is public and online. It shows the owners, manager, capital and published financial statements. Beneficial owners are declared to the Registry Agency, and access to their details follows EU privacy rules.

Every company keeps accounts under the Accountancy Act and files annual financial statements for publication in the Commercial Register. An independent audit applies only above size thresholds. A local accountant is the norm, and we can introduce one.

Tax residence, substance and fit

The 10% rate works when the company is really run from Bulgaria. If the owner and manager live in another EU country and take every decision there, that country's tax authority may treat the company as resident at home and tax it at the local rate.

Founders who move to Bulgaria, or who hire a local team and manager, get the most from the structure. Remote owners should expect questions from their home tax authority and plan board decisions, contracts and staff with that in mind (confirm with your specialist).

Keep records that show where the business happens: board minutes, a lease or office agreement, local staff contracts and invoices issued from Bulgaria. Banks ask for the same evidence.

Bulgaria fits best when you or your team will be there, when you invoice EU clients in euro and when you want low running costs. It fits less well for a holding company with no local activity, or where your bank or payment provider is strict about FATF-listed countries.

If the FATF listing is a concern, your specialist can compare Bulgaria with Lithuania or Poland before you pay. Both are EU members with public registers and their own reduced rates for small companies.

What it costs and what is included

Year 1 costs a fixed quote all-in with OCC, with government fees included. Your quote lists each item before you pay, from the registry filing to the registered address and the beneficial owner declaration.

From year 2 the renewal is a fixed quote. Monthly bookkeeping, VAT returns, payroll and the annual financial statements are handled by a Bulgarian accountant and quoted separately, because the price depends on how many invoices and staff you have.

Notary and apostille costs in your home country, and any bank fees, sit outside the package. We tell you what to expect before you sign.