Registration of Foundation and Association (NPO) in Bulgaria (2026)

Legal Framework

The registration and operation of non-profit legal entities in Bulgaria is governed by:

• Non-Profit Legal Entities Act (NPLEA) — the main law governing the establishment, registration, management, reorganisation and termination of NPOs. The last significant amendments date from 2016 (in force from 01.01.2018), which transferred registration from the district courts to the Registry Agency.
• Commercial Register and Register of Non-Profit Legal Entities Act — governs the maintenance of the NPO Register, registration procedure and access to information.
• Accountancy Act and National Accounting Standards — in the part concerning NPO reporting.

From 01.01.2026, with the adoption of the euro, all amounts in legislation stated in BGN apply at the fixed rate of 1 EUR = 1.95583 BGN.

Association and Foundation — Differences

The NPLEA provides for two main forms of non-profit legal entities:

Association

The association is a membership organisation in which persons (natural and/or legal) unite to achieve a common non-profit purpose. The supreme body is the General Assembly of members. Examples of associations: professional chambers, sports clubs, charitable organisations, professional guilds.

Foundation

The foundation is endowed assets — one or more founders allocate assets to achieve a specific non-profit purpose. The foundation has no members; its governance is determined by the founding act. It may also be established by will. Examples: educational foundations, scholarship funds, research institutes.

Status: Public or Private Benefit

Every NPO (association or foundation) must determine its status upon establishment:

Public Benefit

A public-benefit NPO carries out activities for the benefit of society — education, science, culture, healthcare, human rights protection, environment and other socially significant purposes. The status carries additional obligations:

• Publication of an annual activity report;
• Mandatory independent financial audit of the annual financial statements;
• Entry in the Register of Public-Benefit NPOs at the Registry Agency;
• Oversight by the Registry Agency and the Minister of Justice over the proper use of funds.

Private Benefit

A private-benefit NPO carries out activities for the benefit of its founders, members or a specific circle of persons. The reporting and transparency requirements are lower. Examples: interest clubs, professional unions with a limited circle of beneficiaries.

Registration Procedure

Since 01.01.2018, the registration of NPOs is carried out in the Commercial Register and the NPO Register at the Registry Agency (rather than at the district court, as before):

1. Preparation of founding documents

   For a foundation: founding act with notarised signatures, minutes of the founding meeting (where there is more than one founder), specimen of the representative's signature, good faith declaration under the NPLEA, document evidencing the donation provided (if applicable).

   For an association: founding minutes from the constituent assembly, articles of association, list of founders with personal data and signatures, specimen of the representative's signature, good faith declaration.

2. Filing the application

   The application is filed with the Registry Agency: form A15 (for an association) or A16 (for a foundation). Filing may be on paper or electronically (with a qualified electronic signature), with electronic filing reducing the fee by 50 %.

3. Decision (3 business days)

   The registration officer decides within 3 business days of filing. If deficiencies are found, instructions for their rectification are given.

Minimum Number of Founders

Founders may be Bulgarian or foreign citizens or legal entities. There are no residence or citizenship requirements.

State Fees

Electronic filing significantly reduces both the fee and processing time. From 01.01.2026, payment may be made directly in euros.

Tax Regime

The tax treatment of NPOs depends on the type of activity:

• Non-economic activity — income from non-economic activities (membership fees, donations, subsidies for non-profit purposes) is not subject to corporate tax.
• Economic activity — if the NPO also conducts economic (commercial) activities, the profit from such activities is subject to 10 % corporate tax, identical to commercial companies. The NPO must maintain separate accounting for non-economic and economic activities.
• Donations — tax relief:
  • Legal entities that donate to a public-benefit NPO are entitled to a tax deduction of up to 10 % of the accounting profit;
  • Natural persons — up to 5 % of the tax base.
• VAT registration — mandatory upon reaching a threshold of EUR 51,130 annual turnover from economic activity. Non-economic activity is not included in the threshold calculation.

Reporting and Oversight

All NPOs are subject to reporting obligations, which are significantly stricter for public-benefit NPOs:

General Obligations (for all NPOs)

• Annual financial statements — prepared and published in the NPO Register by 30 June of the following year;
• Annual tax return — where economic activity is conducted, by 30 June.

Additional Obligations for Public-Benefit NPOs

• Annual activity report — contains information on activities carried out, funds spent and results achieved;
• Independent financial audit — annual financial statements are subject to mandatory audit by a registered auditor;
• Publication — the annual report and audited financial statements are published in the NPO Register;
• Oversight — the Registry Agency and the Minister of Justice exercise oversight over the proper use of funds and compliance with the purposes for which the status was determined. In case of violations, the public-benefit status may be revoked.

Frequently asked questions