Short answer: no Bulgarian law says "you must hire an accountant." But in practice, it is mandatory. The Accountancy Act requires every company — including your EOOD — to maintain double-entry bookkeeping, file monthly VAT returns and social security declarations in Bulgarian, and submit annual financial statements electronically using a qualified electronic signature. Unless you hold a Bulgarian accounting degree and speak fluent Bulgarian, you need a professional accountant. This guide explains exactly what an EOOD accountant does, how much it costs, how to choose one, and what happens if you choose badly.
What Does an EOOD Accountant Actually Do?
Many EOOD owners think of their accountant as "the person who files my taxes once a year." In reality, a Bulgarian accountant handles a continuous stream of monthly and annual obligations. Missing any of them triggers fines.
Monthly Duties
- Invoice processing and bookkeeping — Recording every incoming and outgoing invoice in the company's accounting system using the Bulgarian chart of accounts. All entries must follow double-entry bookkeeping rules under Art. 3 of the Accountancy Act.
- VAT return (by the 14th) — If your EOOD is VAT-registered, your accountant prepares and files the monthly VAT return, VAT purchase/sales ledgers, and (if applicable) VIES declarations for intra-EU transactions. Deadline: the 14th of the month following the reporting period.
- Social security declarations (by the 25th) — Declaration 1 (individual data per insured person) and Declaration 6 (aggregate amounts due) must be filed with the National Revenue Agency (NRA) by the 25th of the following month. Your accountant calculates contributions and files both declarations.
- Corporate income tax advance payments — If your EOOD's net revenue exceeded EUR 150,000 in the prior year, quarterly advance CIT payments are mandatory. Your accountant calculates and files these.
- Payroll processing (if employees) — For each employee: gross-to-net salary calculation, payslip generation, employment contract registration with the NRA, and monthly social security filings.
Annual Duties
- Corporate income tax return (March 1 - June 30) — Form 1010 must be filed between March 1 and June 30 of the following year. The 10% CIT due (minus any advance payments) must be paid by June 30. Combined with the 5% dividend withholding tax, the total effective rate is 15%.
- Annual financial statements / GFO (by September 30) — The Godishen Finansov Otchet (GFO) must be published with the Commercial Register by September 30. The state filing fee is EUR 15 for electronic submission.
- NSI annual activity report (by June 30) — A mandatory statistical report to the National Statistical Institute. No fee, but failure to file results in fines of EUR 100-500.
- Owner's personal income tax coordination (by April 30) — If you pay yourself a salary and/or dividends, your accountant prepares the data needed for your personal income tax return (GDD, due April 30). They also handle the annual reconciliation for self-insured persons.
- No-activity declaration (if dormant, by June 30) — Even dormant EOODs must file a declaration of inactivity with the NRA and the Commercial Register by June 30.
Key point: Your accountant is not a luxury — they are the person who keeps the NRA from fining you every month. A typical active EOOD has 12 VAT returns, 12 social security declarations, 1 CIT return, 1 GFO filing, and 1 NSI report per year — minimum 27 mandatory filings. Miss one and you get a penalty notice.
How Much Does It Cost?
Accounting fees in Bulgaria are market-based — there is no regulated tariff. Prices vary by provider, location (Sofia is slightly higher), and the specific services included. The table below reflects 2026 market rates based on our experience working with hundreds of foreign-owned EOODs.
| Company Type | Monthly Fee (EUR) | Annual Cost (EUR) |
|---|---|---|
| Dormant EOOD (no activity, no VAT) | €50-100 | €600-1,200 |
| Active, non-VAT (under 20 docs/month) | €100-150 | €1,200-1,800 |
| Active, VAT-registered (20-50 docs/month) | €150-250 | €1,800-3,000 |
| Complex / high-volume (50+ docs, employees, intercompany) | €200-300+ | €2,400-3,600+ |
These ranges assume a Sofia-based accountant who communicates in English. Bulgarian-only accountants may charge 20-30% less, but the communication barrier creates its own costs in misunderstandings and missed optimization opportunities.
For a complete breakdown of all EOOD running costs (not just accounting), see our guide on annual cost of running an EOOD in Bulgaria.
What Determines the Price?
Four factors drive your monthly accounting fee. Understanding them helps you negotiate and budget accurately.
- Number of documents per month — This is the single biggest factor. Each invoice (issued or received) must be recorded, categorized, and reconciled. A company with 5 invoices per month pays significantly less than one with 80. Most accountants price in tiers: 0-20, 20-50, 50-100, 100+ documents.
- VAT registration — VAT compliance adds a monthly return (by the 14th), purchase and sales ledgers, potential VIES declarations, and Intrastat reporting for physical goods. This adds EUR 30-80/month to the base fee. The 2026 mandatory VAT registration threshold is EUR 50,000 annual taxable turnover.
- Number of employees — Each employee adds EUR 20-40/month for payroll calculations, payslips, social security declarations, employment contract management, and sick leave / annual leave tracking.
- Transaction complexity — Foreign currency transactions, intercompany invoicing, transfer pricing documentation, asset depreciation schedules, and regulated-industry reporting all increase the accountant's workload and your fee.
Practical example: A solo IT consultant with an EOOD, 8-10 invoices per month, no VAT, no employees, paying himself minimum salary — EUR 100-130/month. The same consultant after VAT registration and hiring one developer — EUR 180-230/month. Same accountant, same company, just more complexity.
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Get Accountant Introduction →Can You Do Your Own Accounting?
Technically, yes. The law does not prohibit an EOOD owner from handling their own accounting. However, Art. 18 of the Accountancy Act sets strict qualification requirements for whoever compiles the company's financial statements.
Art. 18 Qualification Requirements
The person who compiles (signs) the annual financial statements must meet one of these education + experience combinations:
- Master's degree in accounting or economics + 2 years of relevant professional experience
- Bachelor's degree in accounting or economics + 3 years of relevant professional experience
- Professional bachelor's degree in accounting or economics + 4 years of relevant professional experience
- Other tertiary economic education + 5 years of relevant professional experience
- Secondary economic education + 8 years of professional experience as an accountant
"Relevant professional experience" means work in accounting, external or internal audit, financial inspection, tax audits, or as an educator in accounting and control.
When DIY Might Work
If you genuinely hold the required qualifications, speak Bulgarian, own a КЕП (qualified electronic signature), and understand the NRA's electronic filing systems — you can legally do your own accounting. Some Bulgarian entrepreneurs with accounting backgrounds do this successfully.
When DIY Will Hurt You
For most foreign EOOD owners, DIY accounting is a recipe for penalties. The risks include:
- Language barrier — All NRA filings, the chart of accounts, and the Commercial Register interface are in Bulgarian.
- Missed deadlines — 27+ mandatory filings per year, each with its own deadline and penalty.
- Incorrect tax calculations — Social security contribution rates, CIT advance payment thresholds, and VAT rules change annually.
- Penalties — Fines range from EUR 100 to EUR 3,000 per violation (see penalty section below). A single missed VAT return costs EUR 250.
Bottom line: The EUR 100-250/month you pay an accountant is cheaper than one NRA audit finding errors in two years of self-filed returns. Professional accounting is a cost-saving measure, not an expense.
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Get a Free Quote →How to Choose a Good Accountant
Not all accountants are equal. A bad accountant can cost you thousands in missed deductions, late-filing penalties, and compliance headaches. Here are six criteria that matter most for foreign-owned EOODs.
- Qualifications under Art. 18 — Ask directly whether they (or their firm's signing accountant) meet the Accountancy Act requirements. A legitimate accountant will not be offended by the question. If they are vague about qualifications, move on.
- English fluency — Not "I speak a little English" but genuine professional fluency. You need to discuss tax optimization, CIT advance payments, dividend timing, and social security strategy. If your accountant cannot explain these in English, you are flying blind.
- Responsive communication — Your accountant should respond to emails within 24-48 hours and be available for a call when something urgent comes up. Test this during the sales process — if they take a week to reply before you sign, they will take two weeks after.
- Cloud-based accounting software — Modern accountants use cloud platforms that give you real-time access to your books, invoices, and reports. If the accountant works only on a local desktop installation and sends you a PDF once a year, that is a red flag.
- NRA portal access for you — Your accountant will use your КЕП to file returns with the NRA. A good accountant will also set up your own access so you can log in and verify that filings have been made. If an accountant refuses to give you visibility into your own NRA portal, do not work with them.
- References from other foreign clients — Ask for two or three references from other foreign-owned companies. Accountants who regularly serve international clients understand the specific challenges: foreign currency invoicing, double tax treaty applications, and communication across time zones.
Red Flags: Warning Signs of a Bad Accountant
We have seen every accounting horror story in the book. Here are the warning signs that should make you switch accountants immediately.
- Missed filing deadlines — If you receive a penalty notice from the NRA for a late filing, your accountant failed at their most basic job. One late filing in five years is forgivable. Two in one year is a pattern.
- No access to the NRA portal — If your accountant will not set up your access to check filing status, they may be hiding missed filings or errors. Transparency is non-negotiable.
- Cannot explain your tax obligations — A good accountant proactively tells you: "You need to pay X by date Y." If you constantly have to ask "what do I owe?" or discover obligations after the deadline, the accountant is not managing your compliance.
- No written contract or service agreement — A professional accountant works under a service agreement that specifies which filings are included, response times, and liability. No contract means no accountability.
- Unreachable during filing periods — The 14th (VAT) and 25th (social security) of each month are critical dates. If your accountant disappears during these windows, your filings are at risk.
- Suspiciously low prices — An accountant charging EUR 40-50/month for an active VAT-registered company is either cutting corners or handling 300+ clients. At that volume, your company gets template treatment, not professional attention.
Switching accountants is not difficult. You have the legal right to your accounting records at any time. Give your current accountant 30 days' written notice, request a complete handover of all documents and electronic files, and ensure your new accountant receives everything before the next filing deadline. We help clients with accountant transitions regularly — reach out if you need guidance.
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Switch Accountants →"EUR 100-300/month seems expensive for a country with 10% corporate tax."
It is not. Compare: a UK accountant for a Ltd costs GBP 150-500/month. A German Steuerberater costs EUR 300-800/month. A Bulgarian accountant at EUR 150/month is handling the same complexity — double-entry bookkeeping, monthly VAT, social security, annual statements — at one-third to one-fifth of the Western European price. The combined CIT + dividend rate of 15% plus affordable professional services is exactly why Bulgaria attracts international entrepreneurs.
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Frequently Asked Questions
Is hiring an accountant legally required for a Bulgarian EOOD?
How much does an EOOD accountant cost per month?
What happens if my accountant misses a filing deadline?
Can I use a foreign accountant or do my books remotely?
Do I need an accountant for a dormant EOOD with no activity?
What qualifications should I verify when hiring an accountant?
How often will I interact with my accountant?
Can I switch accountants mid-year?
Disclaimer: This article provides general guidance on EOOD accounting requirements and costs in Bulgaria based on current legislation and market rates as of April 2026. Accounting fees are market-based and vary by provider. Qualification requirements are set by the Accountancy Act (Закон за счетоводството). 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.