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.
What's easy, what's hard?
Bulgaria's numbers are simple and unconditional. The difficulty isn't in taxation — it's in banking and local compliance after registration.
No capital barrier
The statutory minimum capital for limited companies is 2 leva — about €1. There's no large sum to block, no capital-commitment tracking, and no payment-schedule issue.
A flat, unconditional tax rate
Corporate tax is 10%, dividend tax is 5%. There's no employee requirement, revenue threshold, or sector restriction. The rate hasn't changed since 2007.
Extracting profit is cheap
Corporate tax and dividend withholding together produce a total burden of about 14.5%. For structures that regularly pass profit through to shareholders, it's one of the lowest combined rates in Europe.
Operating in euros
As of 1 January 2026, Bulgaria is part of the euro area. For companies that invoice and collect in euros, currency conversion and dual-currency accounting are gone.
Geographic proximity
Bulgaria shares a land border with Turkey and has been a full Schengen member since January 2025. It's the most accessible EU country for logistics, visits, and setting up operations.
Bank accounts for non-residents
This is the slowest and most unpredictable step in the process. Banks run detailed compliance checks on companies with foreign shareholders, ask about the source of funds, and sometimes require the director to appear at the branch in person.
The capital account has two stages
At incorporation, a temporary capital account is opened first, then converted into an operating account after registration. Mixing up these two stages is the most common cause of delay after formation.
Language and local accounting requirements
Filings are submitted in Bulgarian through the National Revenue Agency's systems. Your accountant in Turkey cannot handle this.
Corporate perception lags behind Western Europe
Some corporate clients and platforms raise extra compliance questions for Bulgarian companies. The issue isn't in the law — it's in the other party's internal policy.
Keeping track of the registered address
The registered address is the official address for legal notices. An unmonitored address means missed notices and administrative penalties.
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.
1 January 2026
Bulgaria joined the euro area. The changeover used a fixed rate: 1 EUR = 1.95583 BGN.
Invoicing in euros
The company invoices and collects in euros. There's no currency conversion between you and your European customer anymore.
A single currency
Books and filings are kept in euros. Dual-currency tracking and period-end exchange-rate calculations are gone.
SEPA standard
Transfers within the euro area now meet the same standard as other member states; transfer cost and time have dropped.
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.
A single-member limited liability company. The standard choice for solo consultants, developers, and e-commerce entrepreneurs.
A limited liability company with two or more shareholders. Ownership shares and decision-making are freely set out in the articles of association.
A joint-stock company. Suited to large-scale structures planning share transfers, investment rounds, or corporate partnerships.
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.
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.
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.
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.
Our clients who set up companies in Bulgaria
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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.