🇧🇬European Union · SchengenUsing the euro since 2026
Setting Up an EOOD in Bulgaria — 10% Tax, 5% Dividend, €1 Capital
Bulgaria's appeal doesn't come from a single rate but from the combination of three numbers: 10% corporate tax, 5% dividend tax, and symbolic share capital. The total cost of extracting profit is among the lowest in the EU. With the euro changeover on 1 January 2026, currency risk disappeared as well. On the other hand, opening a bank account for non-resident shareholders is still the slowest step in the process.
Formation package from 1.800 €Notary and translation included · see the price breakdown ↓✓€1 in capital, no conditions attached
✓Land border with Turkey, inside Schengen
✓EU VAT number and reverse charge
Company type
EOOD / OOD
Corporate tax
10%
Dividend
5%
Registration
3–7 days
Currency
Euro
Free · 5 questions · 1 minute
Is Bulgaria the right country for you?
Answer five questions to see how well the 10% + 5% structure fits your profit plans, your fit score and what will be easy or hard for you. If it is not a fit, we tell you which country is a better match.
Question 1 / 5
Where are most of your customers?
The intra-EU invoicing advantage depends on where your customers are.
No contact details needed
Your result will appear here
%What does 10% + 5% earn you?Your combined tax burden based on your profit plan.
✓What will be easy and hard for youNot a generic list; only the advantages and watch-outs that apply to your profile.
→Next stepA quote if it fits, otherwise which country is a better match.
Bulgaria company formation price
Know what you will pay before you start. The formation package is a one-off fee; a registered address is a legal requirement, and you add other services as you need them.
Formation package · one-off
EOOD / OOD company formation
1.800 €
✓OOD company formation and registration
✓Trade register registration
✓Tax payer registration
✓Bylaws and establishment documents
✓Company documents in Bulgarian and English
✓Preparation of bank introduction letters
1-year registered addressLegal requirement1.000 €
Digital bank application supportLegal requirement0 €
Mail screening and forwardingLegal requirement0 €
Starting total2.800 €
Notary and translation costs are included in the package.
Frequently added services
Optional · add during formation or later
12-month accountingRecommendedMonthly records and returns · local requirement1.900 €yearly
Bank account application supportRecommendedLocal bank documentation and appointment process500 €one-off
EU VAT number applicationLocal and EU VAT registration250 €one-off
From the second yearRegistered address + 12 months of accounting. The formation fee is not charged again.2.900 € / year
2026's biggest change
Bulgaria adopted the euro on 1 January 2026
Bulgaria joined the euro area on 1 January 2026, and the lev was converted to the euro at a fixed rate: 1 EUR = 1.95583 BGN. For an investor looking in from Turkey, this isn't a technical detail — it removes the dual-currency complexity that was the most criticized aspect of a Bulgarian company. The company now invoices in euros, keeps its books in euros, and pays tax in euros. There's no more currency conversion standing between you and your European customer.
Date
1 January 2026
Bulgaria joined the euro area. The changeover used a fixed rate: 1 EUR = 1.95583 BGN.
Invoicing
Invoicing in euros
The company invoices and collects in euros. There's no currency conversion between you and your European customer anymore.
Accounting
A single currency
Books and filings are kept in euros. Dual-currency tracking and period-end exchange-rate calculations are gone.
Payments
SEPA standard
Transfers within the euro area now meet the same standard as other member states; transfer cost and time have dropped.
What changed in practice?
✓Currency risk is gone: euro income, euro expenses, and euro tax are all in the same currency.
✓Accounting is simpler: lev–euro conversion entries and exchange-rate calculations are over.
✓Payment infrastructure has moved to the euro-area standard; SEPA transfers are faster.
!Some thresholds in the law are still written in leva; they're applied by converting at the fixed rate.
Some thresholds and amounts are still written into the law in leva and converted to euros at the fixed rate. We clarify which currency your calculations should use during the incorporation stage.Ask about the euro changeover
EOOD, OOD, AD — which one?
The difference comes down to the number of shareholders and scale. The vast majority of foreign investors choose one of the first two options.
EOODMost popular choice
A single-member limited liability company. The standard choice for solo consultants, developers, and e-commerce entrepreneurs.
✓You can be the sole shareholder and sole director
✓Minimum capital is about €1
✓Liability is limited to the share capital
✓Remote incorporation and management are possible
OODMulti-shareholder structures
A limited liability company with two or more shareholders. Ownership shares and decision-making are freely set out in the articles of association.
▪Requires at least two shareholders
▪Share ratios and authority are flexibly defined
▪Shareholder entry and exit are governed by the agreement
▪Same tax regime as an EOOD
ADLarge scale
A joint-stock company. Suited to large-scale structures planning share transfers, investment rounds, or corporate partnerships.
▪Higher capital requirement
▪Management and supervisory bodies are mandatory
▪Suited to share transfers and investment
▪Heavier documentation burden
Bulgaria or another country? Comparison table
The four countries we compare Bulgaria to most often. Click a column header to go to that country's page.
Scroll the table sideways →
🇧🇬BulgariaEOOD🇷🇴RomaniaSRL🇭🇺HungaryKft🇪🇪EstoniaOÜ🇬🇧United KingdomLtd
Corporate tax
10%
1% or 16% of revenue
9%
0% if not distributed
19–25%
Dividend tax
5%
16%
Depends on the case
Arises upon distribution
Depends on the case
Any conditions?
None
1 employee + €100,000 threshold
None
Profit must not be distributed
Identity verification
Minimum capital
≈ €1
RON 500
HUF 3,000,000
€2,500
None
Currency
Euro
Leu
Forint
Euro
Pound sterling
Formation time
3–7 business days
3–5 business days
5 business days
1–5 business days
Same day
Best-fit profile
Profit-extracting, cost-focused EU entry
Small revenue, has an employee
Sells into the EU, extracts profit
Keeps profit in the company
Fast start, global sales
Bulgaria or Romania?
Romania's 1% looks attractive, but it comes with an employee requirement and a €100,000 threshold, and its dividend tax is 16%. Bulgaria has no such conditions, and extracting profit is much cheaper at 5%.
Bulgaria or Hungary?
The rates are close (10% vs. 9%). The difference is in currency and capital: Bulgaria uses the euro and requires €1 in capital, while Hungary uses the forint and requires HUF 3,000,000 in capital.
If you're keeping profit in the company
In Estonia, undistributed profit isn't taxed; in Bulgaria, 10% is due in the year the profit is earned. If you plan to reinvest profit, run the numbers for both models side by side.
Formation process: registration in 3–7 business days
Registration with the Commercial Register is fast. What determines the timeline is the apostille and translation preparation beforehand, and the banking stage afterward.
StageWhat happensDuration
Day 0–2Deciding the structure and nameWe decide whether to form a single-member EOOD or a multi-shareholder OOD; the name is checked against the Commercial Register and the business activity is defined.1–2 days1–2 days
Day 2–7Document preparation and translationPassports and proof of address are collected; the power of attorney is drawn up before a notary, apostilled, and translated into Bulgarian by a sworn translator.3–5 days3–5 days
Day 7–11Capital account and registered addressA temporary bank account is opened to deposit the capital; a registered address in Bulgaria is designated and the right to use it is documented.2–4 days2–4 days
Day 11–18Registration with the Commercial RegisterAn application is filed with the Commercial Register under the Registry Agency; the company is registered and issued a UIC number.3–7 days3–7 days
Day 18–30Tax and VAT registrationRegistration is completed with the National Revenue Agency; if the threshold is met or otherwise needed, VAT registration and an EU VAT number (VIES) application are filed.3–14 days3–14 days
AfterwardBanking and accountingThe capital account is converted into an operating account or a new account is opened; the accounting agreement is signed and the filing calendar is set up.1–4 weeks1–4 weeks
Documents needed
Passport
For all shareholders and the director; a legible color scan is enough.
Proof of address
A utility bill or residence document issued within the last 3 months.
Power of attorney + apostille
Drawn up before a notary, apostilled, and translated into Bulgarian by a sworn translator.
Company name and activity
2–3 alternative company names, along with the planned business activity and ownership structure.
Tax and annual obligations
Bulgaria's tax structure is simple: a flat rate, no conditions, unchanged since 2007. The real question is the total burden when you extract profit.
ItemRate / thresholdNote
Corporate tax10%A flat rate, independent of company size, sector, or profit level. Unchanged since 2007.
Dividend tax5%Withholding on distributed profit; can drop to zero for qualifying EU/EEA parent companies.
Combined burden≈ 14.5%The combined effect of corporate tax and dividend withholding; among the lowest in the EU.
VAT (standard)20%A reduced rate of 9% applies to certain categories of goods and services.
VAT registration thresholdBGN 100,000About €51,130; voluntary registration is possible below the threshold.
Minimum capitalBGN 2About €1; deposited into a temporary capital account at incorporation.
CurrencyEuroSince 1 January 2026; fixed rate of 1 EUR = 1.95583 BGN.
The total cost of extracting profit
On 100 units of profit, 10% corporate tax is paid first, then 5% dividend tax is withheld when the remaining 90 units are distributed. The total burden stays around 14.5% — one of the lowest combined rates in Europe for shareholders who regularly draw profit.
Don't overlook the Turkish side
Full taxpayers resident in Turkey are required to declare profit distributions received from a foreign company. Controlled foreign company rules can also tax the earnings in Turkey under certain conditions.
Read the detailed guide →Who is Bulgaria right for?
A summary of what we cover in the first half hour of a consultation.
The right choice
✓Companies that regularly distribute profit to shareholders — the 10% + 5% combination is one of the cheapest ways to extract profit in the EU.
✓New ventures looking to enter the EU with low capital and low operating costs.
✓Software, consulting, and e-export companies that invoice and collect in euros.
✓Trading companies that build land logistics with Turkey and need to travel back and forth frequently.
Look at another country
✕Businesses whose corporate clients are Western-Europe-based with strict vendor-approval processes — a perception issue can arise independent of the law.
✕Structures that will keep profit in the company and reinvest it — the Estonian model may be a better fit.
✕Businesses actually operated from Turkey, where the structure would exist on paper only.
✕Urgent setups that can't wait for the bank account process and need to start collecting payments in the first week.
Frequently asked questions about setting up a company in Bulgaria
Organized into six topics: formation, the euro changeover, banking, tax, e-commerce, and the Turkish side. Pick a topic or search directly.
29 questions
Yes. There's no citizenship or residency requirement to set up a company in Bulgaria; foreign individuals and legal entities can be the sole shareholder and director. In practice, the one clear obstacle foreign-owned companies face isn't registration — it's opening a bank account.
Both are limited liability companies with liability capped at the share capital. The difference is the number of shareholders: an EOOD has one, an OOD has two or more. Almost all solo consultants, developers, and e-commerce entrepreneurs form an EOOD; multi-owner setups choose an OOD.
It's symbolic: the statutory minimum for limited companies is 2 leva, about €1. In practice, a higher amount may be chosen for how it looks to banks and business partners, but it isn't legally required. The capital is deposited into a temporary account during incorporation.
When the documents are complete, registration with the Commercial Register is usually finished in 3–7 business days. The apostille, translation, and power-of-attorney preparation beforehand takes 3–5 days, and the bank account and VAT registration afterward can add another 1–4 weeks. A realistic total timeline is 3–6 weeks.
Yes. Formation is completed remotely through a notarized and apostilled power of attorney given to a lawyer in Bulgaria. Signing before a notary in Turkey is enough. Some banks may require the director to appear at a branch for account opening; in that case, a single trip becomes necessary.
Yes. Every company must have a registered address in Bulgaria; this is the official address for legal notices, and the tax authority sends correspondence there. If you don't have your own office, a registered-address service is used; it covers mail tracking and document storage.
You need the passports of the shareholders and director, proof of address, alternative company names, the business activity, and the ownership–capital structure. For remote formation, a notarized and apostilled power of attorney is added, along with sworn Bulgarian translations of these documents.
Voluntary liquidation takes a few months, depending on settling debts and closing the tax relationship. The main things that stretch out the process are missing period filings, an open VAT registration, and an account that hasn't been emptied. That's why we discuss the exit scenario as early as the formation stage.
Yes. Bulgaria joined the euro area on 1 January 2026. The lev was converted to the euro at a fixed rate: 1 EUR = 1.95583 BGN. Companies now invoice, keep their books, and pay tax in euros.
It has three practical effects. First, currency risk is gone: euros from a European customer go straight into the company account with no conversion cost. Second, accounting is simpler, with no more dual-currency tracking. Third, payment infrastructure and SEPA transactions now meet the same standard as other euro-area countries.
Some amounts and thresholds in the law are still expressed in leva and are converted to euros at the fixed rate. For example, the VAT registration threshold is 100,000 leva, about €51,130. We clarify which currency the calculations should be based on during the formation stage.
On this point, yes. Hungary still uses the forint, so a company working in euros has to manage exchange rates and conversions there. In Bulgaria, that layer is gone entirely. For businesses that invoice and collect in euros, this is a convenience worth taking seriously.
This is the slowest step in the process. For companies with non-resident shareholders, banks run detailed compliance checks — asking about the business activity, customer evidence, and source of funds. Some banks require the director to appear at a branch. E-money institutions like Wise and Revolut Business are a practical alternative for remote account opening.
No. During incorporation, a temporary capital account is opened to deposit the capital; once the company is registered, this account is converted into a corporate operating account or a new one is opened. Mixing up these two stages is one of the most common causes of delay after formation.
Yes. Bulgaria is among the countries supported by Stripe and PayPal, and EU membership means access to payment infrastructure is seamless. The euro changeover has also simplified collections and transfers. Each provider still runs its own compliance review.
The rejection is recorded and makes a second application to the same institution harder. That's why we prepare the business-activity description, customer evidence, and expected transaction-volume file before applying, and choose the institution to match your profile; if you're rejected, we refer you to an alternative one.
Corporate tax is a flat 10%. The same rate applies regardless of company size, sector, or profit level. It hasn't changed since 2007, making it one of the lowest and most stable corporate tax rates in the European Union.
A 5% withholding tax applies to distributed profit. This can drop to zero for distributions to qualifying parent companies in EU or EEA countries. When corporate tax and dividend tax are calculated together, the total burden stays around 14.5%.
The standard VAT rate is 20%; a reduced rate of 9% applies to certain categories of goods and services. VAT registration becomes mandatory once annual revenue passes the threshold of 100,000 leva (about €51,130). Voluntary registration is possible below the threshold, and those who want to reclaim input VAT often choose it.
Yes. Because Bulgaria is an EU member, an EU VAT number (VIES registration) can be obtained for intra-community transactions. Sales to businesses within the EU use the reverse-charge mechanism, meaning no VAT is calculated on the invoice. The EU-wide SME scheme also gives small businesses below a certain revenue limit an easier path for cross-border sales.
No. Filings are submitted in Bulgarian through the National Revenue Agency's electronic systems; working with an accountant who keeps books under Bulgarian law is effectively mandatory. You send us the documents, the local accountant handles the bookkeeping and filing, and we take care of coordination and reporting to you in Turkish.
Bulgaria's general tax structure is already favorable for companies exporting software and services: a low rate, low operating costs, and intra-EU reverse charge. Since sector-specific incentives can change over time, we confirm what your activity currently qualifies for before you apply.
Yes. A Bulgarian company can buy products from Turkey and import them into Bulgaria or another EU country. Sharing a land border with Turkey is a clear logistical advantage. Before importing, the product's customs code, origin, and technical compliance should be checked, and an EORI number is needed for EU customs procedures.
Yes. A Bulgarian company can sell through its own store, Amazon, Etsy, and eBay. For sales to EU consumers, a single filing is possible through the OSS system; if products are stored in a warehouse in another EU country, VAT registration may also be needed there.
No. Bulgaria has no regime like a micro-company scheme that requires an employee; the company can operate without hiring staff. A registered address is mandatory, but a physical office is not. This is one of the clearest differences from Romania.
The owner or director can live in Turkey and run things remotely. However, if the company's actual place of management, employees, and office end up being in Turkey, that can create a risk of the company also being treated as a taxpayer in Turkey. This should be assessed before the structure is set up.
A full taxpayer resident in Turkey who receives a profit distribution from a foreign company is required to declare it in Turkey. Controlled foreign company rules can also lead to the earnings being taxed in Turkey under certain conditions. The double-taxation treaty between Turkey and Bulgaria is taken into account in this assessment.
Owning a company doesn't automatically grant the right of residence. Foreign investors who want to live in Bulgaria need to apply separately under the appropriate residence category; the application evaluates factors such as the company's actual activity, investment amount, and employment.
Yes. Bulgaria has been a full Schengen member, including land borders, since January 2025. Combined with its land border with Turkey, Schengen membership makes intra-European travel and logistics noticeably easier. However, Schengen membership alone doesn't grant a right of residence or work.
Bulgaria or another country — let's decide together
Tell us about your business, where your customers are, and what you plan to do with the profit; we'll tell you for free which country and which structure fits. It's a filtering conversation, not a sales pitch.
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