In short
Most foreign founders use an OOD (limited liability company) or its single-owner form, the EOOD. Minimum capital is €1 since the euro switch on 1 January 2026. The articles are signed in simple written form; the manager's consent and specimen signature are notarised. Registration with the Registry Agency costs €28.12 online and a new company is examined by the end of the next working day. Corporate tax is 10%, dividend tax 5%, and VAT registration is required above €51,130 turnover. Owning a Bulgarian company does not by itself give you a residence permit.
Bulgarian company: key facts
Last verified 28 September 2026| Usual company type | OOD (limited liability company); EOOD with one owner# Source: Sirakova & Partners: Euro Introduction Act and capital companies |
|---|---|
| OOD/EOOD minimum capital | €1 since 1 January 2026 (was 2 lev); at least 70% paid in before registration# Source: Sirakova & Partners: Euro Introduction Act and capital companies · Tita.bg: capital contributions in an OOD (Commerce Act art. 119) |
| Notary | Articles in simple written form; the manager's consent and specimen signature (and any power of attorney) are notarised# Source: Commerce Act, art. 114 (form of the articles) |
| Registration fee | €28.12 online (with e-signature) or €56.24 on paper# Source: KGMP: registration of an OOD (Registry Agency fees) |
| Registration time | Examined by the end of the next working day after filing# Source: Commercial Register Act, art. 19 (time to register) |
| Corporate income tax | 10% (only Hungary's 9% is lower in the EU)# Source: PwC Worldwide Tax Summaries: Bulgaria corporate income tax · PwC Worldwide Tax Summaries: Hungary corporate income tax |
| Dividend tax | 5% (2026); dividends to EU/EEA companies exempt# Source: PwC Worldwide Tax Summaries: Bulgaria withholding taxes |
| VAT | 20% standard, 9% reduced# Source: PwC Worldwide Tax Summaries: Bulgaria other taxes (VAT) |
| VAT registration threshold | €51,130 turnover in the current or previous calendar year; apply within 7 days of exceeding it# Source: PwC Worldwide Tax Summaries: Bulgaria other taxes (VAT) · KiK-Info: VAT Act 2026 — new threshold and deadlines |
| Annual accounts | Published in the Commercial Register by 30 September of the following year# Source: Gotovdoc: deadline to publish annual financial statements (30 Sep 2026) |
| Owning a company | Not a residence ground on its own; a company must, for example, create at least 10 full-time jobs for Bulgarian citizens# Source: Foreigners in the Republic of Bulgaria Act (consolidated text) |
| Formation cost with a lawyer | about €400–1,200 for a foreign founder, incl. apostille and translations estimate# Source: Innovires: registering a company in Bulgaria as a foreigner (2026) |
Not American?
Canadians, Australians, Brits and other non-EU citizens: the same rules apply
Bulgarian company law is the same for every foreign founder, so Canadians, Australians, New Zealanders and Brits register an EOOD or OOD exactly as described here. Only a few points differ:
- Canada
- Australia
- New Zealand
- United Kingdom
- Japan
- South Korea
- + other visa-free countries
| Living in Bulgaria | A company does not give you residence. Every non-EU founder needs a separate permit to live in Bulgaria. |
|---|---|
| Home-country tax | US citizens are taxed on worldwide income and have extra filings (Form 5471, FBAR, NCTI). Other nationals usually aren't — check your own country's rules. |
| Tax treaty with Bulgaria | Bulgaria has income tax treaties with the US and many other countries — check the dividend rates in yours. |
| Documents from abroad | Need an apostille; the US, Canada (since 11 Jan 2024), the UK, Australia and NZ issue them.Source: HCCH: Apostille Convention status table |
At a Glance
Bulgarian Company Formation in Numbers
Why Bulgaria
Why Americans Register Companies in Bulgaria
Bulgaria's 10% flat corporate tax is the headline, but not the only reason. Operating costs are among the lowest in the EU, registration is quick and cheap, and the country gives natural access to Southeast European markets alongside the full EU single market — now with the euro as currency.
Registration and many filings can be done electronically with a qualified electronic signature, and Bulgaria's software sector gives access to a large pool of IT professionals. For Americans running location-independent businesses, an EOOD or OOD is a financially efficient structure — as long as you plan your US taxes and your residence separately.
Business Structures
Which Entity Type Is Right for You?
The OOD — Bulgaria's limited liability company — is the default choice for foreign entrepreneurs. With a single owner it is called an EOOD.
Limited Liability Company
OOD — Дружество с ограничена отговорност
The standard choice for small and medium-sized businesses and foreign founders. Owners' liability is limited to their contributions. Governance is simple and the manager does not have to live in Bulgaria.
- Min. capital
- €1 (since 2026)
- Managers
- 1 or more (no residence requirement)
- Liability
- Limited to contributions
Single-Member LLC
EOOD — Еднолично дружество с ограничена отговорност
The single-owner version of the OOD, with the same liability protection and tax treatment. Popular with solo entrepreneurs and as a wholly owned EU subsidiary of a US company.
- Min. capital
- €1 (since 2026)
- Owners
- 1 person or company
- Liability
- Limited to contributions
Joint Stock Company
AD — Акционерно дружество
For larger businesses seeking investors or a listing on the Bulgarian Stock Exchange. More complex governance and a higher capital requirement make it unsuitable for most first registrations.
- Min. capital
- €25,000 (since 2026)
- Liability
- Limited to contributions
General / Limited Partnership
SD / KD — Събирателно / Командитно дружество
Partnerships of two or more partners. General partners are personally liable; in a limited partnership (KD) some partners' liability is capped while at least one stays fully liable. Rarely used by foreign founders.
- Min. capital
- None
- Liability
- Unlimited for general partners
Tax Environment
Bulgaria's Corporate Tax Structure
Bulgaria's tax system is among the most competitive in the EU. Corporate income tax is a flat 10% — only Hungary's 9% is lower — and dividends are taxed at 5% in 2026 (a proposed rise to 10% was dropped in December 2025). Personal income tax is also a flat 10%.
Bulgaria has an income tax treaty with the United States, in force since 15 December 2008. It limits Bulgarian tax on dividends paid to US residents to 5% for a company holding at least 10% and 10% otherwise. If you pay yourself a salary, social security contributions are about 32.7–33.4% of gross pay in total (employee share 13.78%), on insurable income up to €2,300 a month from 1 August 2026.
US citizens and Green Card holders are taxed on worldwide income. Owning a Bulgarian EOOD usually means filing Form 5471 and an FBAR if your foreign accounts exceed $10,000 in total. From tax years starting in 2026, GILTI has been renamed net CFC tested income (NCTI). Bulgaria's 10% rate is below the 18.9% high-tax threshold, so undistributed profits can be taxed in the US each year unless you plan for it (for example with a section 962 election or by treating the EOOD as a disregarded entity). Consult a US international tax adviser before incorporating.
Step-by-Step Process
How to Register a Company in Bulgaria
Registering an OOD or EOOD means preparing the founding documents, paying in the capital and filing with the Commercial Register at the Registry Agency — online with a qualified electronic signature or on paper. A new company is examined by the end of the next working day after filing.
Choose your structure Decision
For most foreign founders the EOOD (one owner) or OOD (several owners) is right — limited liability, €1 minimum capital and simple governance. Check with a Bulgarian lawyer if your activity is regulated.
Choose and check the company name Name check
The name must be unique in the Commercial Register and include the legal form (OOD or EOOD). You can check availability on the Registry Agency website.
Prepare the founding documents Notarised signatures
The articles of association (or, for an EOOD, the founding deed) are signed in simple written form. The manager's consent and specimen signature must be notarised, as must any power of attorney if someone files for you. A beneficial ownership declaration may also be needed. Documents signed abroad need an apostille and a certified translation.
Pay in the capital Banking
Open an account for the company in formation and pay in the capital. At least 70% must be paid before registration and the rest within 2 years; the bank's certificate goes with the application. With €1 minimum capital, most founders choose a higher amount for credibility with banks.
File with the Commercial Register €28.12 online
File the application with the Registry Agency together with the founding documents, the capital certificate and the manager's notarised consent. The state fee is €28.12 online with an electronic signature or €56.24 on paper. Once registered, the company gets a 9-digit Unified Identification Code (ЕИК).
Register for VAT if needed Threshold €51,130
VAT registration is mandatory once taxable turnover exceeds €51,130 in the current or previous calendar year — apply within 7 days of crossing it. Voluntary registration below the threshold is possible. If you will buy or sell services with EU businesses, a special registration is needed at least 7 days before the first such service is taxable.
Hire staff (if applicable) If hiring
If the company hires employees in Bulgaria, employment contracts are registered with the National Revenue Agency, and social security contributions are withheld and paid each month.
Costs & Fees
What Does It Cost to Register a Company in Bulgaria?
Bulgaria is one of the cheapest EU countries to set up a company. State fees are low and the minimum capital is nominal. The main cost for foreign founders is legal and accounting help.
| Cost item | Notes | Est. amount |
|---|---|---|
| Commercial Register fee | New company registration; online filing costs half the paper fee. | €28.12 online / €56.24 paper |
| Notarised signatures | Manager's consent and specimen signature; a power of attorney signed abroad also needs an apostille. | about €5–100 |
| Minimum capital (OOD/EOOD) | €1 minimum; most founders pay in more. | from €1 |
| Registered office address | Every company needs an address in Bulgaria; virtual office services are widely available. | about €290–350 a year |
| Formation with a lawyer | Document preparation, notarisation and filing for a foreign founder, incl. apostille and translations. | about €400–1,200 |
| Accounting | Bookkeeping, annual accounts and tax returns. | from about €50–95 a month (about €190+ with VAT) |
Estimates for 2026 from commercial providers. Source: Innovires: registering a company in Bulgaria · Flexy Finance: accounting prices 2026
Ongoing Obligations
Post-Registration Requirements
Bulgarian companies have clear yearly obligations. For non-resident owners, a local accountant is strongly recommended.
Annual accounts and corporate tax return
The corporate income tax return is filed between 1 March and 30 June of the following year, and the tax is paid by 30 June. Annual financial statements are published in the Commercial Register by 30 September of the following year.
Manager
An OOD or EOOD needs at least one manager (управител) registered in the Commercial Register. The manager can be a foreign national and need not live in Bulgaria — but a manager who moves to Bulgaria needs a residence permit.
Accounting and audit
Companies keep double-entry accounts under Bulgarian accounting standards (or IFRS for some companies). An independent audit is required only above certain size thresholds.
Beneficial owners
Owners with more than 25% of shares or votes are recorded in the Commercial Register, and changes must be filed within 7 days.
Expert Notes
What Americans Should Know Before Registering in Bulgaria
A company is not a residence permit
Registering an EOOD does not give you the right to live in Bulgaria. Company-based residence needs, for example, at least 10 full-time jobs for Bulgarian citizens, and self-employed permits have demanding conditions. Remote workers may qualify for the digital nomad permit instead — plan residence and company together.
The 10% tax is real — but check the US side
At 10%, Bulgarian profits fall below the 18.9% US high-tax threshold, so NCTI (formerly GILTI) can bring undistributed profits into your US return each year. Options such as a section 962 election or a disregarded-entity election change the picture — engage a US cross-border tax specialist before incorporating.
Plan for signatures from abroad
The manager's consent and any power of attorney signed in the US need a notary and an apostille, plus a certified Bulgarian translation. Build this into your timeline.
A local accountant is essential
Bulgarian tax and accounting rules are in Bulgarian and change regularly, and the tax authority works in Bulgarian. For non-resident owners, a Bulgarian accountant from day one is a practical necessity. Directories like LocalVouch can help you find vetted, English-speaking Bulgarian accountants and lawyers.
Banking can take time
Bulgarian banks run anti-money-laundering checks on foreign-owned companies. Prepare an ownership chart, source of funds, business plan and expected transaction volumes, and be ready to approach more than one bank.
Registering a Bulgarian company is right for you if…
- You want one of the EU's lowest corporate tax rates — 10% on profits and 5% on dividends — with full single-market access.
- You want to keep formation and running costs low.
- You plan to hire in Bulgaria or work with Bulgarian IT professionals.
- You need an EU company for invoicing, contracts or VAT purposes.
- You have taken US tax advice on NCTI and structured your ownership accordingly — and planned your residence separately.
We work with trusted Bulgarian corporate lawyers and accountants who specialise in companies for non-EU founders — from choosing between an OOD and EOOD to signatures from abroad, banking and ongoing compliance, including coordination with your US tax adviser.
FAQ
Frequently asked questions
What is the corporate tax rate in Bulgaria?
A flat 10% on taxable profits — the EU's second-lowest after Hungary's 9%. Dividends are taxed at 5% in 2026; dividends paid to EU/EEA companies are exempt, and the US treaty caps the rate for US shareholders at 5% or 10%.
What is the most common company type for foreigners in Bulgaria?
The OOD (limited liability company), or EOOD when there is a single owner. The minimum capital has been €1 since the euro switch on 1 January 2026 (previously 2 lev).
How long does it take to register a company in Bulgaria?
The Registry Agency examines a new company's application by the end of the next working day after filing. Preparing documents, notarised signatures from abroad and the bank account usually take longer than the registration itself.
Do I need to live in Bulgaria to register a company there?
No. Foreigners can be owners and managers without living in Bulgaria. But owning a company does not give you a residence permit — if you want to live in Bulgaria you need a separate residence route.
When do I need to register for VAT in Bulgaria?
When taxable turnover exceeds €51,130 in the current or previous calendar year — apply within 7 days of crossing it. Voluntary registration is possible below the threshold, and a special registration is needed before you first buy or sell services with EU businesses.
Can Canadians, Australians or Brits register a company in Bulgaria?
Yes, on exactly the same terms as Americans. What differs is home-country tax and whether your country has a tax treaty with Bulgaria.
Bulgaria
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