Starting a Business in Bulgaria for Foreign Entrepreneurs (2026)

Why start a business in Bulgaria?

Bulgaria offers a unique combination of competitive advantages that make it particularly suitable for foreign entrepreneurs:

• 10 % corporate tax — the lowest in the EU, on par with Hungary. The effective tax burden combined with 5 % dividend tax is only 14.5 %.
• EU membership — full access to the single European market with over 450 million consumers. Free movement of goods, services, capital, and people.
• Euro since 01.01.2026 — Bulgaria adopted the euro, eliminating currency risk for eurozone operations and significantly boosting confidence among international partners and investors.
• Schengen membership since 2025 — free crossing of internal borders, facilitating business travel and logistics.
• Low operating costs — office rents, salaries, and living costs are significantly lower than in Western Europe while maintaining high-quality infrastructure and workforce.
• 100 % foreign ownership — no local partner requirement. A foreign citizen (from the EU or a third country) can be the sole owner and manager.
• Qualified workforce — strong IT sector, multilingual workforce (high percentage fluent in English, German, Russian).

Types of commercial entities for foreign entrepreneurs

For most foreign entrepreneurs, the EOOD (single-member limited liability company) is the optimal choice. The minimum capital is nominal — EUR 1, registration is fast (3–5 business days), and management is flexible.

Remote registration — opportunities and limitations

Company registration in Bulgaria can be completed theoretically entirely remotely through an authorized attorney. Адвокатът подготвя документите, заверява ги с квалифициран електронен подпис и подава заявлението онлайн.

In practice, however, there is one significant limitation: most Bulgarian banks require physical presence of the owner/manager when opening an escrow account (needed for capital contribution) and a current account.

Typical timeline for remote registration:

• Week 1 — preparation and notarization of power of attorney and documents in the country of residence.
• Week 2 — sending documents by courier, opening an escrow account (with physical presence or through a bank accepting remote identification).
• Week 3 — filing the application in the Commercial Register, registration (3–5 business days).

The total duration is approximately 3 weeks, and costs range between EUR 400 and EUR 800 (including attorney fee, notary fees, state fee, and bank fees).

9 steps to start a business

1. Choosing a company name

   Check uniqueness in the Commercial Register (https://portal.registryagency.bg). The name must be in Bulgarian or in a foreign language with Cyrillic transliteration. You can reserve up to 3 options.

2. Preparing founding documents

   Memorandum of association (for EOOD) or articles of association (for OOD), minutes of the founding meeting, specimen signature of the manager, declarations under the CA and CRRA. For foreign citizens — documents are translated and legalized.

3. Notarization

   The manager's specimen signature requires notarization. For foreign persons, notarization can be done at the Bulgarian embassy/consulate or by a notary in the country of residence (with apostille and certified translation).

4. Opening an escrow account and depositing capital

   The chosen bank opens an escrow account where a minimum of EUR 1 is deposited (for EOOD/OOD). The bank issues a certificate of paid-in capital.

5. Registration in the Commercial Register

   Filing application A4 — electronically (BGN 55) or on paper (BGN 110). Processing time — up to 3–5 business days. After registration, the company receives a UIC (unified identification code).

6. BULSTAT registration

   Automatic upon registration in the Commercial Register — the UIC also serves as the BULSTAT number.

7. NRA registration

   The company is automatically registered with the National Revenue Agency. If VAT registration is needed, a separate application is filed.

8. Engaging an accountant

   In Bulgaria, accounting is mandatory from the moment of registration. Engage a licensed accountant or accounting firm. Costs for a small company without activity start from EUR 50–100 monthly.

9. VAT registration (if needed)

   Mandatory for annual turnover exceeding EUR 51,130. Voluntary registration is possible at any time and is recommended when working with EU counterparties (for VAT deduction).

Opening a bank account

Opening a bank account is one of the most challenging stages for foreign entrepreneurs. The key points:

• Physical presence — most banks require the manager/owner to appear in person. Some banks offer video identification, but the practice is not widespread.
• KYC check (Know Your Customer) — the bank requires identity documents, proof of address, information on the source of funds, and the company's planned activity.
• Timelines — from 3–5 business days (standard situation) to 3 weeks (complex KYC check or citizens from higher-risk jurisdictions).
• Required documents — current extract from the CR, identity document (passport), beneficial owner declaration, business plan or activity description.

We recommend preparing a detailed description of the planned activity, expected turnover, and key counterparties before the meeting with the bank. This significantly speeds up the approval process.

Tax residency and work permits

Tax residency

A company registered in Bulgaria is automatically a tax resident and owes 10 % corporate tax on its worldwide income. An individual (owner/manager) becomes a tax resident of Bulgaria if:

• They stay in the country for more than 183 days within a 12-month period; or
• Their center of vital interests is in Bulgaria (family, property, main activity).

Work permits

The need for a permit depends on nationality:

• EU/EEA citizens — no work or residence permit required. Free access to the labor market.
• Third-country nationals — EU Blue Card — for highly qualified specialists. Requires an employment contract with a minimum salary of 1.5 times the average wage.
• Startup visa — for entrepreneurs with a minimum investment of EUR 100,000 (incl. BGN equivalent converted to euro). Provides a residence permit for entrepreneurial activity.
• Digital Nomad Visa — in effect since December 2025. Requires proven income of at least EUR 31,000 annually. Important: the digital nomad visa does NOT allow activity for a Bulgarian company — it is intended for persons working remotely for a foreign employer or their own foreign company.
• Freelancer visa — requires a permit from the Ministry of Labor, a business plan, and proven experience of at least 2 years.

Frequently asked questions