How much does it actually cost to keep a Bulgarian EOOD running each year? Registration gets all the attention, but the ongoing costs are what determine whether Bulgaria is truly the best jurisdiction for your business. As a law firm that advises hundreds of foreign-owned EOODs, we see the real numbers every month. This guide breaks down every recurring expense — monthly, annual, and variable — so you can budget accurately before you commit. All figures are in EUR following Bulgaria's euro adoption on January 1, 2026.
The short answer: a typical active EOOD with one owner-manager, no employees, and VAT registration costs between EUR 4,800 and EUR 6,200 per year. A dormant EOOD with no activity costs EUR 1,500-2,400 per year. Below, we break down every line item and show you exactly how to calculate your specific situation.
Monthly Fixed Costs
These are the costs you pay every month regardless of revenue. They form the baseline of your EOOD's operating expenses.
Accounting Services
Your accountant is your largest ongoing expense — and your most important one. Bulgarian law requires all companies to maintain double-entry bookkeeping, and all filings with the National Revenue Agency (NRA) must be submitted electronically in Bulgarian. In practice, every foreign-owned EOOD needs a licensed Bulgarian accountant.
Monthly accounting fees depend on three factors: transaction volume, VAT status, and payroll complexity.
| Company Profile | Monthly Fee (EUR) | Annual Cost (EUR) |
|---|---|---|
| Dormant EOOD (no activity) | €50-100 | €600-1,200 |
| Micro (0-20 documents/month, no VAT) | €100-150 | €1,200-1,800 |
| Small (20-50 documents/month, no VAT) | €150-200 | €1,800-2,400 |
| VAT-registered (add-on) | +€30-80 | +€360-960 |
| Per employee payroll (add-on) | +€20-40 | +€240-480 |
A typical EOOD with one owner-director, fewer than 20 monthly transactions, and no employees will pay EUR 100-150/month. If the company is VAT-registered, expect EUR 150-250/month total. For a detailed guide on what your accountant handles, see our article on EOOD annual obligations.
Social Security Contributions (Owner on Minimum Salary)
If you pay yourself a salary as the EOOD's manager (which is the standard approach for tax and social security optimization), you owe social security and health insurance contributions on that salary. Most owner-managers pay themselves the minimum salary of EUR 620.20 (effective January 1, 2026) to minimize this cost.
The contribution split on the 2026 minimum salary:
- Employer contributions: 18.92% x EUR 620 = approximately EUR 117/month
- Employee contributions: 13.78% x EUR 620 = approximately EUR 85/month
- Total social security cost: approximately EUR 202/month (EUR 2,430/year)
The employer portion (18.92%) includes pension insurance, supplementary pension, unemployment, general illness and maternity, accident at work, and the employer's share of health insurance (4.8%). The employee portion (13.78%) covers pension insurance, supplementary pension, unemployment, general illness and maternity, and the employee's share of health insurance (3.2%). The 10% flat income tax is applied after deducting the employee's social security contributions.
Optimization note: The minimum salary strategy minimizes your social security burden while maintaining full health insurance coverage and pension rights. Additional income can be extracted as dividends, which are subject to only 5% withholding tax — no social security. For a full breakdown of salary vs dividends, see our guide on how to pay yourself from an EOOD.
Virtual Office / Registered Address
Every EOOD must maintain a registered address (sedalishte i adres na upravlenie). A virtual office in Sofia is the standard choice for foreign-owned companies.
- Basic virtual address: EUR 15-25/month (EUR 180-300/year)
- Premium (mail scanning, phone forwarding): EUR 25-40/month (EUR 300-480/year)
Law firms (including ours) often provide registered address services as part of an ongoing package, handling all correspondence from the Trade Registry, NRA, and banks. For details, see our guide on EOOD registered address options.
Bank Account Maintenance
A corporate bank account at a Bulgarian bank (DSK Bank, UniCredit Bulbank) carries a monthly maintenance fee:
- Monthly maintenance: EUR 5-15
- Annual cost: EUR 60-180
Many founders also use a fintech (Wise, Revolut Business) as their primary operational account while maintaining the Bulgarian bank account for compliance purposes. This is perfectly legal and increasingly common. For a detailed comparison, see Wise/Revolut vs Bulgarian bank for EOODs.
Annual Fixed Costs
These costs recur once per year and are mandatory for every EOOD, whether active or dormant.
KEP (Qualified Electronic Signature) Renewal
A qualified electronic signature (KEP) is mandatory for filing VAT returns, social security declarations, the corporate tax return, and annual financial statements with the NRA and Commercial Register. Without a KEP, your accountant cannot submit anything electronically — and paper filing is either unavailable or significantly more expensive.
Bulgarian KEP providers include B-Trust, StampIT, InfoNotary, and Evrotrust. Traditional providers issue a certificate on a smart card or USB token; Evrotrust offers a mobile-based solution.
- Annual renewal cost: EUR 25-50 depending on provider and plan
- Initial issuance (first year): EUR 30-60 (includes hardware for token-based providers)
Annual Financial Statements (GFO) Publication
Every EOOD must publish its annual financial statements (Godishen Finansov Otchet / GFO) with the Commercial Register by September 30 of the following year. The filing fee is EUR 15 for electronic submission.
Your accountant prepares the GFO as part of their monthly service — the EUR 15 is only the state filing fee. Late publication carries fines of EUR 100-2,550 for the company plus EUR 100-500 for the manager personally.
NSI Annual Activity Report
All companies must submit an annual activity report to the National Statistical Institute (NSI) by June 30. There is no fee for this filing — but it is mandatory, and your accountant handles it. Failure to file results in fines of EUR 100-500.
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These costs depend on your company's activity level and specific circumstances.
VAT Compliance (If Registered)
VAT registration is mandatory once your annual taxable turnover exceeds EUR 50,000. Below that threshold, registration is voluntary. If registered:
- Monthly VAT return preparation: EUR 30-80/month (included in accounting fee or charged separately)
- VIES declarations (EU transactions): Typically included in accounting fee
- Intrastat reporting (if applicable): EUR 30-50/month additional
A VAT-registered EOOD pays EUR 360-960 more per year in accounting fees compared to a non-VAT company. This is a significant cost driver for small companies — if you are below the threshold, think carefully about whether voluntary registration makes financial sense.
Dividend Withholding Tax Filing
When the EOOD distributes dividends to the owner, it must withhold 5% dividend tax and file a quarterly declaration with the NRA. Combined with the 10% corporate income tax, this gives a total effective rate of 15% (10% CIT + 5% dividend WHT). Your accountant handles the quarterly filing as part of the standard service — there is no additional NRA fee for the declaration itself.
Additional Accounting for Complex Structures
If your EOOD has intercompany transactions, transfer pricing requirements, or foreign currency operations, expect additional accounting costs of EUR 50-150/month. Companies with employees in multiple locations, significant asset portfolios, or regulated activities (payment services, fintech) will be at the higher end of the accounting range.
Total Cost Scenarios
Here are three realistic annual cost scenarios based on hundreds of EOODs we work with. These assume one owner-manager, no additional employees, and a Sofia virtual address.
Scenario A: Dormant EOOD (No Activity)
| Cost Item | Monthly (EUR) | Annual (EUR) |
|---|---|---|
| Accountant (dormant rate) | €50-100 | €600-1,200 |
| Virtual address (basic) | €15-25 | €180-300 |
| Bank account maintenance | €5-15 | €60-180 |
| KEP renewal | — | €25-50 |
| GFO / no-activity declaration | — | €15 |
| Total | €70-140 | €880-1,745 |
A dormant EOOD with no salary payments, no VAT, and no transactions still costs EUR 880-1,745 per year to maintain. If you do not plan to use the company for 12+ months, consider liquidation — the one-time cost of closing (EUR 300-600 in professional fees) may be cheaper than two years of dormant maintenance.
Scenario B: Active, Non-VAT, One Owner on Minimum Salary
| Cost Item | Monthly (EUR) | Annual (EUR) |
|---|---|---|
| Accountant (micro, non-VAT) | €100-150 | €1,200-1,800 |
| Social security (on EUR 620 min salary) | €202 | €2,430 |
| Virtual address | €15-25 | €180-300 |
| Bank account maintenance | €5-15 | €60-180 |
| KEP renewal | — | €25-50 |
| GFO publication | — | €15 |
| Total | €322-392 | €3,910-4,775 |
This is the most common setup for solo service-based businesses (IT consultants, marketers, freelancers-turned-company-owners) earning under the EUR 50,000 VAT threshold. The social security contribution on minimum salary is the second-largest expense after the accountant.
Scenario C: Active, VAT-Registered, One Owner on Minimum Salary
| Cost Item | Monthly (EUR) | Annual (EUR) |
|---|---|---|
| Accountant (VAT-registered) | €150-250 | €1,800-3,000 |
| Social security (on EUR 620 min salary) | €202 | €2,430 |
| Virtual address | €20-35 | €240-420 |
| Bank account maintenance | €5-15 | €60-180 |
| KEP renewal | — | €25-50 |
| GFO publication | — | €15 |
| Total | €377-502 | €4,570-6,095 |
VAT registration adds approximately EUR 600-1,200/year in additional accounting costs. For companies billing EU businesses (B2B), VAT registration enables the reverse-charge mechanism, which can be advantageous. For companies selling to consumers, the 20% VAT adds administrative overhead.
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Request Cost Breakdown →First-Year Costs (One-Time)
Your first year includes one-time setup costs on top of the recurring expenses above. Budget for these separately.
| One-Time Cost | Amount (EUR) | Notes |
|---|---|---|
| Lawyer fees (incorporation) | €700-999 + VAT | Founding Act, declarations, Trade Registry filing |
| Bank KYC fee | €100-500 | Non-refundable, ~1 week processing |
| Trade Registry state fee | €28 | Electronic filing |
| Notary fees | €10-30 | Specimen signature, document certification |
| Address setup / consent letter | €0-50 | Often included in address service |
| PoA + apostille (if remote) | €100-250 | Only if not in Bulgaria |
| First-year one-time total | €838-1,857 (on top of annual recurring costs) | |
For a complete breakdown of registration costs, see our dedicated guide: Bulgaria company registration cost: full breakdown.
How to Minimize Costs
Bulgaria already has some of the lowest company running costs in the EU. Here is how to push them even lower.
1. Pay Minimum Salary Only
The minimum salary of EUR 620.20 (2026) is the most tax-efficient base for social security contributions. There is no legal obligation to pay yourself more as the owner-manager. Extract additional income as dividends — subject to only 5% withholding tax with zero social security. This strategy alone saves thousands per year compared to paying a higher salary.
2. Stay Below the VAT Threshold
If your annual taxable turnover is under EUR 50,000, you are not required to register for VAT. Avoiding VAT registration saves EUR 360-960/year in additional accounting fees. However, if you primarily serve VAT-registered EU businesses, voluntary registration may be worthwhile — the reverse-charge mechanism means you charge 0% VAT on B2B EU services, and you can reclaim input VAT on your expenses.
3. Use a Fintech for Daily Operations
Maintain the mandatory Bulgarian bank account for compliance (salary payments, NRA requirements) but use Wise or Revolut Business for daily operations. Fintech accounts offer lower transaction fees, real-time multi-currency exchange, and modern interfaces. Monthly savings: EUR 10-30 in bank transaction fees depending on volume.
4. Choose Your Accountant Wisely
The cheapest accountant (EUR 50-80/month) is rarely the best value. At that price point, accountants typically handle 200+ clients and are reactive, not proactive. A responsive accountant who costs EUR 130-180/month but catches tax optimization opportunities, files on time, and communicates in English will save you more in avoided penalties and missed deductions than the EUR 50/month difference.
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Get a Fixed-Price Quote →Bulgaria vs Other EU Countries
How do Bulgarian EOOD running costs compare to other popular EU jurisdictions? The table below compares annual costs for a typical small active company (one owner, no employees, service-based, under 50K revenue).
| Cost Category | Bulgaria (EOOD) | Estonia (OU) | Cyprus (Ltd) | Ireland (Ltd) |
|---|---|---|---|---|
| Accounting | €1,200-2,400/yr | €600-1,800/yr | €1,200-2,500/yr | €2,000-4,000/yr |
| Mandatory audit | No (for micro/small) | No (for micro/small) | Yes (all companies) | Exempt if small |
| Registered address | €180-480/yr | €200-400/yr | €300-600/yr | €200-400/yr |
| Annual state fees | €15 (GFO filing) | Free (online) | €0 (levy abolished) | €20 (CRO return) |
| Mandatory audit cost | N/A | N/A | €500-2,000/yr | N/A if exempt |
| Corporate tax rate | 10% CIT + 5% dividend = 15% | 0% retained / 20% distributed | 15% (from 2026) | 15% (OECD Pillar Two) |
| Social security (owner, min base) | €2,430/yr | €0 (no salary required) | €0 (director fees exempt) | ~€5,000/yr (Class S PRSI) |
| Total annual running cost | €3,900-5,300 | €800-2,200 | €2,000-5,100 | €7,200-9,400 |
Key insight: Estonia looks cheaper on paper because Estonian OU owners are not required to pay themselves a salary (and therefore avoid social security). However, if you actually live in an EU country, your country of residence may require you to pay social security regardless of your corporate structure. Bulgaria's advantage is that it combines low running costs with low personal taxation — the 10% flat income tax + 5% dividend tax gives a 15% combined rate that applies whether you retain or distribute profits. Estonia's 0% on retained earnings is attractive for reinvestment-heavy businesses, but the 20% distribution tax is higher when you eventually take money out.
Cyprus has become more expensive since increasing its corporate tax to 15% in 2026, and the mandatory annual audit (even for the smallest companies) adds EUR 500-2,000 that Bulgaria and Estonia do not require. Ireland offers excellent legal infrastructure but the highest running costs in this comparison.
Common concerns about EOOD running costs:
"EUR 4-6K/year seems high for a low-tax country." It is important to distinguish between tax costs and compliance costs. Bulgaria's taxes are genuinely low (15% combined CIT + dividend rate, 7.5% for freelancers). The running costs come from social security contributions (mandatory in all EU countries) and professional services (accounting, address). Compared to Western Europe, you are paying 40-60% less for the same services.
"Can I skip the accountant and do bookkeeping myself?" Technically yes, but practically no — unless you speak Bulgarian, hold a qualified electronic signature, and are comfortable with Bulgarian chart of accounts, NRA filing portals, and social security declaration formats. The penalties for incorrect filings (EUR 250-1,500 per violation) make professional accounting a cost-saving measure, not an expense.
"What if I just stop paying and ignore the company?" The company continues to accrue obligations, penalties, and potential personal liability for the manager. NRA penalties for unfiled returns start at EUR 250 per return. After three years of non-filing, the Registry Agency can initiate forced liquidation — but the debts remain. If you want to stop, formally liquidate the company.
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Frequently Asked Questions
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Disclaimer: This article provides general guidance on annual EOOD running costs in Bulgaria based on current legislation and market rates as of April 2026. Social security rates are set by the Bulgarian Social Security Code and may change annually. Accounting fees are market-based and vary by provider. All amounts are in EUR (Bulgaria adopted the euro on January 1, 2026). Corporate income tax is 10% and dividend withholding tax is 5%, giving a combined rate of 15%. This article does not constitute legal or tax advice. For personalized guidance, consult a qualified Bulgarian lawyer. Last updated: April 8, 2026.