You registered a Bulgarian EOOD. Life changed. Now you're moving to Germany, Portugal, the Netherlands, or somewhere else entirely. The question everyone asks: what happens to the company? The short answer is nothing automatic. Your EOOD doesn't leave with you. It stays exactly where it is — incorporated in Bulgaria, registered in the Bulgarian Commercial Register, and subject to Bulgarian tax law.
But "nothing automatic" doesn't mean "nothing to worry about." Depending on where you go and what you do with the company, you face decisions about tax residency, social security, residence status, and ongoing compliance. This guide covers your four options — and the risks that come with each.
The Company Stays Bulgarian
Under Article 3(1) of the Bulgarian Corporate Income Tax Act (ЗКПО), a company incorporated under Bulgarian law is a Bulgarian tax resident. Full stop. The test is place of incorporation, not place of management or owner's residence. Your EOOD remains a Bulgarian tax-resident entity regardless of where you personally live.
This means all annual obligations continue unchanged:
- Annual CIT return — filed electronically with the NRA, deadline March 1 - June 30
- Annual financial statements (GFO) — published in the Commercial Register by September 30
- VAT returns — monthly, by the 14th of the following month (if VAT-registered)
- Social security declarations — monthly Form 1 and annual Form 6 (if self-insured as manager)
- NSI annual activity report — filed with the CIT return
Your Bulgarian accountant handles all of these filings using a qualified electronic signature (КЕП) — either yours via Evrotrust or theirs with a power of attorney from you. No physical presence at any Bulgarian government office is required for ongoing operations.
Key point: The company doesn't care where you are. Bulgarian law doesn't require the director or owner of an EOOD to reside in Bulgaria (Art. 141, Commercial Act). But other countries may care very much — see the tax risks section below.
Your Four Options
When you leave Bulgaria as an EOOD owner, you have four paths. Each has different costs, timelines, and implications.
| Option | Timeline | Annual Cost | Best For |
|---|---|---|---|
| A. Keep Operating Remotely | Immediate | EUR 1,500-4,000+ | Active business, ongoing revenue |
| B. Go Dormant | 1-2 weeks setup | EUR 200-500 | Pausing, may return later |
| C. Liquidate | 6-12 months | EUR 1,500-3,000 (one-time) | Permanent exit, clean closure |
| D. Sell (Transfer Shares) | 2-4 weeks | N/A (one-time) | Fastest exit, company has value |
Option A: Keep Operating Remotely
This is the most common choice for owners who still have active clients, revenue, or plans to continue the business. The practical requirements are straightforward:
- Qualified electronic signature (КЕП). All NRA filings require a КЕП. The easiest remote option is Evrotrust — a cloud-based КЕП provider. Download the app, verify your identity via video call, and receive a cloud КЕП. No Bulgaria visit needed. Alternatively, your accountant files using their own КЕП with a power of attorney.
- Bulgarian accountant. Your accountant handles monthly and annual filings, bookkeeping, VAT returns, and social security declarations. You provide invoices, bank statements, and expense receipts. Cost: EUR 100-300/month depending on transaction volume.
- Virtual office. Your EOOD must maintain a registered address (седалище и адрес на управление) in Bulgaria. A virtual office service fulfills this. Cost: EUR 30-80/month.
- Bulgarian bank account. The company's bank account stays active. If you didn't open one yet, Bulgarian banks require in-person KYC — expect approximately one week and EUR 100-500 in fees. After opening, all banking is online. Many owners also use fintech services (Wise, Revolut Business) for day-to-day operations.
This setup works indefinitely. There is no time limit on managing a Bulgarian EOOD from abroad. The legal and compliance infrastructure is fully electronic. The only recurring physical-presence requirement is if you need to open a new bank account or notarize certain Commercial Register changes — and even notarization can sometimes be done at a Bulgarian consulate abroad.
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Book Free Consultation →Option B: Make It Dormant
If you don't plan to use the company for a while but want to keep the option open, you can make it dormant. A dormant company has no activity — no transactions, no employees, no VAT obligations, no investment activity.
Instead of filing full annual financial statements, you file a no-activity declaration under Article 38(9)(2) of the Accountancy Act. The declaration is filed in the Commercial Register by June 30 of the following year. Filing is free of charge.
Annual costs for a dormant EOOD are minimal:
- Accountant fees: EUR 100-300/year for the no-activity declaration, annual CIT return (showing zero), and any minimal bookkeeping
- Virtual office: EUR 360-960/year (or you can use a personal address)
- Bank account maintenance: EUR 0-100/year depending on the bank
Total: approximately EUR 200-500/year at the low end if you use a personal address and a bank with no maintenance fee. With a virtual office, expect EUR 500-1,500/year.
You must still file annually. A dormant company is not invisible. You still need to submit the no-activity declaration and an annual CIT return (with zero figures). Failure to file results in fines. If you're VAT-registered, you should deregister — otherwise monthly nil VAT returns are required. For a full guide, see Dormant EOOD: No-Activity Declaration in Bulgaria.
Option C: Liquidate
Liquidation is the clean, permanent exit. The company ceases to exist. But it's neither fast nor free.
The process under the Bulgarian Commercial Act:
- Resolution to dissolve. As the sole owner, you pass a resolution to dissolve the EOOD. This is documented in writing and notarized.
- Appoint a liquidator. You appoint a liquidator (often the current manager — yourself — or a third party). The appointment is registered in the Commercial Register.
- Creditor notice period. A notice is published in the Commercial Register inviting creditors to submit claims. The mandatory waiting period is 6 months. This cannot be shortened for standard liquidations. An accelerated procedure with a 3-month period may be available for eligible companies with no known liabilities.
- Settle all liabilities. The liquidator settles outstanding debts, collects receivables, and closes contracts.
- Final accounts and tax clearance. The liquidator prepares final financial statements, files the final CIT return, and obtains tax clearance from the NRA.
- Distribution and deregistration. Remaining assets are distributed to the owner. The liquidator files for deregistration from the Commercial Register. The company is deleted.
Timeline: Minimum 6 months (due to the creditor period). In practice, 6-12 months is typical. Complex cases can take longer.
Cost: EUR 1,500-3,000 for accountant and legal fees, plus Commercial Register filing fees. If you're abroad and need a third-party liquidator, costs may be higher.
For the complete step-by-step process, see How to Close an EOOD in Bulgaria: Liquidation Guide.
Option D: Sell (Transfer Shares)
Selling the EOOD — transferring your shares to a buyer — is the fastest exit if you find a willing purchaser. The company continues to exist under new ownership; you simply transfer 100% of the shares.
The process:
- Share transfer agreement — notarized, with signatures of both parties authenticated by a notary
- Commercial Register filing — the new owner registers the change of ownership (and usually a new manager)
- Timeline: 2-4 weeks from agreement to registration
Tax on the sale: Capital gains from selling EOOD shares are taxed at 10% flat rate under Bulgarian law. The taxable gain is the sale price minus your acquisition cost (typically the initial capital of BGN 2 / EUR 1). If you are a non-resident at the time of sale, Bulgaria may still tax the gain as Bulgarian-source income, subject to any applicable double tax treaty.
For details on the share transfer process, see Transfer EOOD Shares in Bulgaria.
Need Help Deciding?
Dormant, liquidation, or remote operation — the right choice depends on your plans, tax situation, and timeline. We advise on all four options.
Book Free Consultation →Tax Risks If You Manage from Abroad
If you choose Option A (keep operating remotely), two tax risks follow you wherever you go.
Place of Effective Management (POEM)
Bulgaria determines corporate tax residency by place of incorporation (Art. 3(1) ЗКПО). Your country of residence likely uses a different test: place of effective management (POEM) — where key management and commercial decisions are actually made.
If you are the sole director and you live in Berlin, sign contracts from Berlin, negotiate with clients from Berlin, and make every business decision from your apartment — German tax authorities may argue that the POEM is in Germany. This would make the EOOD dual tax-resident: Bulgarian by incorporation, German by POEM.
Most double tax treaties include a tiebreaker rule for dual-resident companies, typically resolved by POEM. But the process of resolving the dispute through the Mutual Agreement Procedure (MAP) between the two countries is expensive, slow (often 2-3 years), and the outcome is not guaranteed.
Permanent Establishment (PE)
Even without a POEM dispute, your activities abroad may create a permanent establishment of the Bulgarian company in your country. Under Article 5 of the OECD Model Tax Convention:
- Fixed place PE: Your home office, if used regularly and exclusively for the company's business, may constitute a fixed place of business. The 2025 OECD update provides specific guidance on remote-work PE — the determination depends on facts and circumstances, including whether the employer requires or merely permits the arrangement.
- Dependent agent PE: If you habitually conclude contracts on behalf of the company in another country, you may constitute a dependent agent PE. "Habitually" is the threshold — occasional activity may not trigger it, but regular contract signing does.
A PE creates a corporate tax obligation in that country on the profits attributable to the PE — potentially at a much higher rate than Bulgaria's 10% CIT.
Transfer pricing applies too. If you charge your EOOD management fees, license IP, or have any related-party transactions, these must comply with the arm's length principle under Art. 15-16 ЗКПО and the OECD Transfer Pricing Guidelines. The NRA can adjust prices that deviate from arm's length, resulting in additional CIT plus interest and penalties.
For a comprehensive analysis of these risks, see Running a Bulgarian Company from Abroad.
Social Security After Leaving
If you move to another EU/EEA country, social security is governed by EU Regulation 883/2004. The core principle: you can only be insured in one member state at a time.
Common scenarios:
- You get employed in the new country. Your new employer's country becomes responsible for your social security. The employer obtains an A1 certificate. Bulgarian social security contributions stop. Your EOOD can continue operating — you just don't self-insure through it anymore.
- You remain self-employed only through the EOOD. If you pursue self-employed activity only in Bulgaria (through the EOOD) and don't work in the new country, Bulgarian social security generally continues to apply. You keep paying Bulgarian contributions as a self-insured person.
- You work in both countries. If you pursue activity as a self-employed person in two or more member states, the applicable legislation is determined by Article 13 of Regulation 883/2004 — generally the country where you reside, if you pursue a substantial part of your activity there.
- You move outside the EU. EU coordination rules don't apply. Check the specific social security agreement (if any) between Bulgaria and the non-EU country. You may need to self-insure in the new country and could potentially stop Bulgarian contributions, depending on the agreement.
The A1 certificate is key. If you're employed in another EU country and still have the Bulgarian EOOD, make sure your employer obtains an A1 certificate confirming which country's social security applies. Without it, both countries may claim contributions. For more on balancing employment and an EOOD, see EOOD While Employed Abroad.
What About Your Residence?
Leaving Bulgaria affects your residence status. The rules differ for EU and non-EU citizens, and depend on how long you've been in Bulgaria.
EU Citizens
- Prolonged (continuous) residence: Temporary absences of up to 6 months per year do not break continuity of residence. Absences exceeding 6 months (except for compulsory military service or serious reasons up to 12 consecutive months) may break your continuous residence period. This matters if you're working toward the 5-year threshold for permanent residence.
- Permanent residence (after 5 years): Once acquired, permanent residence is lost only after 2 consecutive years of absence from Bulgaria. This is per Directive 2004/38/EC, transposed into Bulgarian law. If you've already obtained permanent residence and leave for less than 2 years, it remains valid.
Non-EU Citizens
Rules are stricter. Prolonged residence permits typically require physical presence in Bulgaria. Extended absences may result in revocation of the permit. The specific terms depend on your permit type and the grounds for issuance. Contact the Migration Directorate (Дирекция "Миграция") for your specific situation.
For a full guide on EU citizen residence rules, see Permanent Residence in Bulgaria for EU Citizens.
Moving Abroad with a Bulgarian EOOD?
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Book Free Consultation →Objection: "Can't I just ignore it and sort it out later?" You can — but the consequences compound. Missed NRA filings trigger automatic fines (EUR 100-5,000+ per obligation). Unresolved POEM exposure means potential back-taxes in your new country. Social security gaps mean no healthcare coverage and lost pension years. The cost of getting it right now is a fraction of fixing it later.
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Frequently Asked Questions
Does my Bulgarian EOOD close automatically if I leave the country?
Can I manage my Bulgarian EOOD remotely from another country?
What is the cheapest option if I don't want to use my EOOD anymore?
How long does it take to liquidate a Bulgarian EOOD?
What tax do I pay if I sell my EOOD shares?
What is the POEM risk if I manage my EOOD from abroad?
What happens to my social security if I leave Bulgaria for another EU country?
Do I lose my Bulgarian residence if I leave for an extended period?
Leaving Bulgaria with an EOOD?
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Book Free Consultation →Disclaimer: This article provides general information about what happens to a Bulgarian EOOD when the owner leaves the country and does not constitute legal or tax advice. Tax residency, permanent establishment, social security, and residence status depend on individual circumstances and the specific laws of your country of residence. Consult our team for advice tailored to your situation. Last updated: April 9, 2026.