How to Start a Business in Bulgaria as a Foreigner

Bulgaria has the lowest corporate tax in the EU: 10% flat. Add 5% dividend tax and the combined rate is just 10% + 5%. Minimum capital to form a company? EUR 1. Registration time? 3 business days. And since January 1, 2026, everything — invoicing, tax payments, contracts — is in euros. No currency conversion, no FX risk.

Whether you are a freelance developer in Berlin, a SaaS founder in Amsterdam, or a consultant in London looking for a tax-efficient EU base, Bulgaria offers a compelling setup. This guide walks you through every step — from choosing the right structure to issuing your first invoice — based on our experience setting up businesses for over 50 foreign entrepreneurs.

Why Foreign Entrepreneurs Choose Bulgaria

Bulgaria is not just cheap. It is structurally competitive. Here is what you get that most other EU countries cannot offer together:

• 10% flat corporate tax — the lowest in the EU. No progressive brackets, no surcharges, no solidarity taxes.
• 5% dividend withholding tax — take money out of the company at one of the lowest rates in Europe.
• Full EU membership — your Bulgarian company can invoice any EU client with reverse-charge VAT. No customs, no barriers.
• Eurozone member since January 2026 — no currency risk. Clients in Germany, France, or the Netherlands pay in the same currency your company operates in.
• Double taxation treaties with 70+ countries — including the US, UK, Canada, Australia, Israel, and all major EU states.
• Low operating costs — accountant fees start at EUR 150/month, registered office at EUR 50/month, and the cost of living in Sofia is 50-60% lower than Western European capitals.

Business Structures Available to Foreigners

Bulgaria offers several entity types. For 90% of foreign entrepreneurs, only two matter:

EOOD (Еднолично Дружество с Ограничена Отговорност) is the standard choice for foreign entrepreneurs. It is Bulgaria's equivalent of a German GmbH, UK Ltd, or US LLC. You own 100% of the shares, enjoy limited liability, and can optimize taxes through the salary-dividend split.

Freelancer (свободна професия) is simpler and cheaper to maintain, but offers no liability protection. It is ideal for solo consultants, designers, and developers earning under EUR 5,000/month. For a detailed comparison, see our Company vs. Freelancer guide.

Prerequisites: What You Need Before Registration

For EU Citizens

• Bulgarian residency card (Certificate of EU Citizen Registration) — issued at the local Migration Office. Requires a valid ID or passport, proof of address in Bulgaria, and a reason for stay (employment, self-employment, or sufficient funds). Processing: same day to 1 week.
• Bulgarian address — needed for both your residency card and company registration. Can be a rental agreement, hotel confirmation, or a registered address service.
• Translated and legalized documents — varies by nationality. Some countries require apostille, others have bilateral agreements with Bulgaria that simplify the process.

For Non-EU Citizens

• Type D visa — long-stay visa obtained at the Bulgarian embassy in your country. Processing: 30-60 days.
• Residence permit card — applied for within 14 days of entering Bulgaria with the D visa. Issued within 14-30 days.
• Alternatively: Digital Nomad Visa — available since December 2025 for remote workers earning at least EUR 31,000/year. 1-year permit, renewable once. See our tax residency guide for details.

Step-by-Step: Registering an EOOD

Here is exactly what happens when you (or your lawyer) registers a Bulgarian EOOD:

1. Choose a company name. Check availability at the Bulgarian Trade Registry (registryagency.bg). The name must be unique. We recommend having 2-3 alternatives ready.
2. Draft the Articles of Association. This is the company's founding document — it defines the company name, registered address, share capital, scope of activity, and management structure. Your lawyer drafts this in Bulgarian.
3. Deposit the share capital. Open a capital deposit account at any Bulgarian bank and deposit the share capital (minimum EUR 1, but EUR 50-100 is standard). The bank issues a deposit certificate. After registration, the capital is released for the company's use.
4. Notarize the required documents. The Articles of Association, the manager's consent and specimen signature declaration, and the founder's decision must be notarized. If you are abroad, your lawyer handles this via Power of Attorney.
5. File with the Trade Registry. Your lawyer submits the application electronically. Required documents: Articles of Association, capital deposit certificate, manager consent, proof of registered address, declaration of beneficial owners (AML).
6. Receive your UIC (company number). The Trade Registry processes the application within 3 business days. You receive a unique identification code (UIC/EIK) — this is your company's official registration number, used for all tax and government filings.
7. Register at the NRA. Your lawyer files the tax registration with the National Revenue Agency. This assigns your company a tax identification, registers you for Bulstat, and — if applicable — registers you for VAT. Takes 1-2 business days.
8. Open a business bank account. With the UIC and NRA registration in hand, open a business bank account. Digital banks (Revolut Business, Wise Business) approve in 1-3 days. Traditional Bulgarian banks take 1-2 weeks.

Can You Do All of This Remotely?

Yes. The entire process can be completed without setting foot in Bulgaria. Here is how:

1. Sign a Power of Attorney (PoA) — authorizes your Bulgarian lawyer to act on your behalf for all registration steps. The PoA must be notarized in your country and apostilled (or legalized, depending on your country's agreement with Bulgaria).
2. Send documents to your lawyer — the original PoA plus copies of your ID/passport. Some law firms accept scanned copies initially and request originals by mail.
3. Your lawyer handles everything — Trade Registry filing, NRA registration, bank account opening (for banks that allow PoA), and initial accounting setup.

Full Cost Breakdown

Ongoing Monthly Costs

These are real numbers from our clients' operations, not estimates. The EOOD has higher fixed costs but lower variable costs (social security is on the minimum salary only). The freelancer has lower fixed costs but social security scales with income.

Timeline: From Decision to First Invoice

Opening a Business Bank Account

This is often the step that surprises foreign entrepreneurs the most. Here are your options:

Digital Banks (Recommended for Most Clients)

• Revolut Business — IBAN in your company name, multi-currency support, integrates with accounting software. Approval: 1-3 business days. No branch visit required.
• Wise Business — local IBANs in EUR, GBP, USD, and more. Low FX fees. Approval: 1-3 business days.

Traditional Bulgarian Banks

• UniCredit Bulbank, DSK Bank, Postbank — full-service banking with EUR IBANs. Approval: 1-2 weeks. Usually requires an in-person visit (or PoA). Higher compliance requirements for foreign-managed companies.

For most foreign entrepreneurs, Revolut Business is the pragmatic choice. You get a EUR IBAN instantly, can manage everything online, and avoid the documentation maze of traditional Bulgarian banks. Add a traditional bank account later if needed for specific purposes (e.g., government contracts, payroll).

Tax Registration and Obligations

Once your company is registered, you have the following tax obligations:

• Corporate income tax: 10% — paid annually on net profit (revenue minus deductible expenses). Advance payments are required quarterly if your previous year's profit exceeded EUR 150,000.
• Dividend withholding tax: 5% — paid when you distribute profits to yourself as the owner. Declared and paid by the company.
• VAT: 20% — mandatory registration when annual turnover exceeds EUR 51,130. You can also register voluntarily from day one (useful if you have significant business expenses with VAT).
• Social security: ~EUR 200/month — paid on the manager's salary. Most foreign entrepreneurs pay themselves the minimum salary (~EUR 620/month) and take the rest as dividends.

Key Filing Deadlines

7 Mistakes Foreign Entrepreneurs Make

1. Registering the company before getting a residency card. You cannot be appointed as a manager without valid residency documentation. Get the card first.
2. Using a home address as the registered office. While technically possible, it complicates things if you move. Use a dedicated registered address service — it costs EUR 25-50/month and keeps your home address private.
3. Ignoring the VAT threshold. The EUR 51,130 threshold creeps up fast. If you exceed it and fail to register within 7 days, you owe retroactive VAT plus penalties. Monitor your turnover monthly.
4. Paying yourself a high salary. Social security contributions are proportional to salary. Pay the minimum (~EUR 620) and take remaining profit as dividends (5% tax, zero social security). This is legal and standard practice.
5. Not having a double taxation treaty strategy. Simply having a Bulgarian company does not make you a Bulgarian tax resident. If you remain tax resident in your home country, your worldwide income — including Bulgarian dividends — may be taxed there. Coordinate your tax residency with your company setup.
6. Choosing the cheapest accountant. Bulgaria's cheapest accountants charge EUR 50/month and handle 200+ clients. The result: missed deadlines, incorrect filings, and NRA audits. Pay EUR 150-200/month for a responsive accountant who knows foreign-owned companies.
7. Waiting to open a bank account. Start the bank account application the day your company receives its UIC. Digital banks approve fast, but traditional banks can take weeks. Don't let banking delays hold up your first invoice.

Frequently Asked Questions

Disclaimer: This article provides general information and does not constitute legal or tax advice. Company registration requirements may vary based on your nationality and specific circumstances. Consult our team for personalized guidance. Last updated: March 13, 2026.