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Bulgaria taxes company profit at a flat 10%, is an EU member and has used the euro since 1 January 2026, so a company in Bulgaria combines a low headline rate with euro accounts, the single market and the EU directives. It suits a trading or service business invoicing across the EU, a company with staff in Bulgaria, or an EU subsidiary that pays dividends to a parent elsewhere in the EU or EEA. It is an onshore company: a company incorporated in Bulgaria is resident there and taxed on its worldwide profit, and treaty relief depends on a genuine commercial purpose. The usual vehicle is the дружество с ограничена отговорност, the OOD, or its single-owner version, the EOOD.
| Form | Owners | Minimum capital | What it suits |
|---|---|---|---|
| EOOD (еднолично ООД) | One individual or one company | EUR 1 of capital, in shares of at least one euro cent | A business with a single owner |
| OOD (ООД) | Two or more individuals or companies | EUR 1 of capital | Partners sharing one company |
| AD (АД) | Shareholders | EUR 25,000 of capital | Larger or regulated businesses |
The EOOD and the OOD are the same legal form under two names: when one person holds the whole capital, the name has to say so. Both need a management address in Bulgaria and a name written in Bulgarian, and both exist only from their entry in the Commercial Register, kept by the Registry Agency and searchable by anyone by name or EIK. How to file, from the manager’s notarised consent to the bank certificate for the capital, is on our page on company formation in Bulgaria.
| Tax | Position in 2026 |
|---|---|
| Corporate tax | 10% flat on taxable profit; annual return between 1 March and 30 June of the following year |
| Dividends to foreign companies | 5% withholding; none for a company resident in an EU or EEA state, unless the payment is a hidden profit distribution |
| Dividends to individuals | 5% final tax, whether the shareholder lives in Bulgaria or abroad |
| VAT | 20% standard, 9% reduced; compulsory registration within seven days of passing the EUR 51,130 threshold of turnover in Bulgaria |
| Tax treaties | More than 70 comprehensive agreements, alongside the EU directives |
| Currency | Euro since 1 January 2026, converted at 1.95583 leva |
Residence follows incorporation, so a Bulgarian company managed from abroad is still taxed in Bulgaria on all its profit. A company below the VAT threshold registers earlier if it buys services from foreign suppliers under the reverse charge or sells services to businesses in other member states, and the reduced 9% rate covers hotel accommodation, books and periodicals, and baby food and nappies.
Members and managers need neither Bulgarian residence nor citizenship, and one foreign individual can own an EOOD and act as its manager (управител). The manager gives a notarised consent with a specimen signature and declares that no insolvency bar applies: nobody declared bankrupt may manage a company, and nor may a person who managed, in the two years before an insolvency decision, a company later terminated with creditors left unpaid, a bar that ends five years after the termination. A manager from outside the EU who moves to Bulgaria needs residence and work permission under immigration law.
Beneficial owners, meaning individuals with 25% or more of the shares or voting rights or control by other means, are recorded on the company’s own file in the Commercial Register. If they are already entered as members, nothing further is filed; if the owner is a company, the individuals behind it are declared, and changes follow the register’s seven-day period. The data are open to the authorities, to obliged entities such as banks and to anyone who proves a legitimate interest.
Foreign-owned companies meet one more rule: where no legal representative living permanently in Bulgaria is entered on the file, the beneficial owner declaration must name a contact person who lives permanently in Bulgaria, has an address for correspondence there and gives notarised consent, and who must hold the beneficial owner information and provide it to banks, other obliged entities and the authorities; where a structure needs one, we can arrange a contact person on those terms.
Since 1 January 2026 the annual statements go in through the National Statistical Institute’s system and are announced automatically for companies that need no audit. Companies registered before the euro also have twelve months from the changeover to bring their founding documents into line with the converted capital.
Bulgarian company accounts are in euro with a BG IBAN inside SEPA, and the Bulgarian Deposit Insurance Fund covers the deposits of companies as well as individuals up to EUR 100,000 per depositor per bank. A new company deals with a bank before it exists, because its cash capital is paid into a temporary capital-raising account and the bank’s certificate goes into the registration file. For buyers, we can offer Bulgarian ready-made companies that already hold a business account; the purchase works for a buyer the bank accepts after it has reviewed the new owners, and the bank then decides whether to continue the account, ask for more information or end it. What individual banks require is on bank accounts for Bulgarian companies.
We register new EOODs and OODs and supply ready-made companies. We draft the founding or transfer documents and the decisions, make the filings with the Commercial Register, the beneficial owner record included, and help prepare the bank application. If we have a working contact at a bank that suits the business, we can introduce you, and the bank alone decides.
No. Bulgaria has no offshore regime. A company incorporated there is tax resident in Bulgaria, pays 10% on its worldwide profit, publishes its accounts in the Commercial Register and charges Bulgarian VAT once registered. What it offers instead is a low onshore rate inside the EU, the EU directives and more than 70 tax treaties, whose principal purpose test means relief follows genuine business rather than a registered address.
The law does not prevent it, but bank practice makes it harder. DSK Bank’s fully online business account is only for Bulgarian citizens, and Postbank’s online request asks for a Bulgarian personal number, so a foreign manager should expect to sign at a branch. UniCredit Bulbank lets a proxy with an explicit notarised power of attorney open the capital-raising account, and payment providers such as Wise and Airwallex onboard Bulgarian companies online.
Not by law. Founders can file the application themselves, online with an electronic signature the Registry Agency accepts or on paper at any of its offices, and a lawyer or another proxy with an express written power can file for them, in which case the applicant’s signature is notarised. An agent helps mainly with the parts in Bulgarian: the founding act, the manager’s papers, translations and the beneficial owner declaration.
From 1 January 2026 capital and tax thresholds are set in euro: the minimum capital of an OOD or EOOD is EUR 1 and the VAT registration threshold EUR 51,130. The Registry Agency converted the registered capital of existing companies automatically at 1.95583 leva to the euro, rounded to the cent, and each company files founding documents showing the euro figures with its next application. Accounts and payments now run in euro.
Comparing Bulgaria with another EU country? Tell us what the company will do, who will own and manage it and where they live, and we will tell you whether a new EOOD, an OOD or a ready-made company fits. Contact us, or write on Telegram or WhatsApp at +48 663 247 166.