By the US GO EU Bulgarian Team · Last updated July 11, 2026
10%
Flat corporate income tax — one of the lowest rates in the European Union (only Hungary's 9% is lower), applied uniformly to all company profits
3–7
Business days to register — once notarized documents are in order, the Commercial Register processes applications efficiently
€1
Minimum share capital for an OOD since Bulgaria's euro adoption in January 2026 — makes Bulgaria one of the most accessible EU jurisdictions to incorporate
Why Americans Register Companies in Bulgaria
Bulgaria's 10% flat corporate tax is the headline — but it is far from the only reason international entrepreneurs choose to incorporate here. Operating costs are among the lowest in the EU, the registration process is relatively straightforward, and the country's location at the crossroads of Europe and the Balkans provides natural access to Southeastern European markets alongside the full EU single market.
Bulgaria has invested in its digital infrastructure and e-government services, making it increasingly possible to manage company administration remotely. The country's well-educated, English-speaking professional workforce is available at significantly lower cost than Western European equivalents. For Americans running location-independent businesses or seeking an EU corporate base with minimal overhead, a Bulgarian OOD offers a financially efficient and legally sound structure.
Business StructuresWhich Entity Type Is Right for You?
Bulgaria offers several business structures. The OOD — the Bulgarian equivalent of a limited liability company — is the default choice for foreign entrepreneurs and the overwhelming majority of American-owned companies registered in Bulgaria. Here is how the main options compare.
Most Popular★ Recommended for Americans
Limited Liability Company
OOD — Дружество с ограничена отговорност
The standard choice for small to medium-sized businesses and foreign entrepreneurs. Liability is limited to contributed capital. Can be owned by a single shareholder (in which case it is called an EOOD). Low share capital requirement and straightforward governance make it ideal for non-resident founders.
Single Owner
Single-Member LLC
EOOD — Еднолично дружество с ограничена отговорност
The single-shareholder variant of the OOD — functionally identical in terms of liability protection and tax treatment, but owned entirely by one individual or legal entity. Commonly chosen by solo entrepreneurs and Americans setting up a wholly owned EU subsidiary.
Larger Businesses
Joint Stock Company
AD — Акционерно дружество
For larger businesses seeking institutional investment or planning a public listing. Shares can be publicly traded on the Bulgarian Stock Exchange. More complex governance requirements and significantly higher minimum share capital make this unsuitable for most initial foreign registrations.
Partnerships
General / Limited Partnership
SD / KD — Съдружие / Командитно дружество
Partnership structures involving two or more partners. General partners bear unlimited personal liability. Rarely chosen by non-resident founders due to liability exposure. The limited partnership (KD) allows some partners limited liability, but the general partner still bears full liability.
Bulgaria's Corporate Tax Structure
Bulgaria's tax system is among the most compelling in the EU for cost-conscious business owners. The 10% flat corporate income tax — second only to Hungary's 9% — applies to all company profits with no graduated bands or surcharges. Combined with a 10% flat personal income tax rate, a 5% dividend withholding tax (among the lowest in the EU), and low social contribution costs, Bulgaria offers one of the lowest total tax burdens on distributed profits anywhere in the European Union.
Bulgarian Corporate Tax — The EU's Most Competitive
Bulgaria Tax Framework
10%
Flat corporate income tax — no bands, no surcharges, applied uniformly to all taxable profits
20%
Standard VAT rate — mandatory registration when annual taxable turnover exceeds €51,130 (2026 threshold)
5%
Dividend withholding tax on distributions to non-resident shareholders — among the lowest in the EU; reduced rates may be available under tax treaties
Bulgaria has an active double taxation treaty with the United States, providing relief on withholding taxes and helping prevent double taxation for American shareholders. The country also has one of the lowest personal income tax rates in the EU at 10% flat — relevant if you draw a salary from your Bulgarian company. Social security contributions are comparatively low by EU standards. All companies must maintain proper accounting records in accordance with Bulgarian accounting standards.
⚠️ US Tax Obligations Still Apply to Bulgarian Company Owners
US citizens and Green Card holders are taxed by the United States on worldwide income regardless of where their business is incorporated. Owning a Bulgarian OOD creates US filing obligations — including FBAR reporting for Bulgarian bank accounts over $10,000, potential Controlled Foreign Corporation (CFC) rules, and GILTI (Global Intangible Low-Taxed Income) provisions that may require undistributed Bulgarian profits to be included in your US tax return annually. Bulgaria's 10% rate is below the GILTI minimum tax threshold, which means careful cross-border planning is particularly important. Consult a US-qualified international tax advisor before incorporating.
How to Register a Company in Bulgaria
Registering an OOD or EOOD in Bulgaria involves notarization of founding documents, registration with the Bulgarian Commercial Register, and post-registration tax enrollment. The process can be completed online via the Registry Agency portal or in person. With documents in order, registration typically takes 3 to 7 business days.
1
Choose Your Business Structure
For most foreign entrepreneurs and Americans, the EOOD (single shareholder) or OOD (multiple shareholders) is the correct choice — offering limited liability, a minimal share capital requirement, and a well-understood legal structure. Confirm the appropriate structure with a Bulgarian corporate attorney before proceeding, particularly for regulated business activities.
Decision
2
Choose and Check Your Company Name
The company name must be unique within the Bulgarian Commercial Register, must not be misleading, and must include the entity type suffix (e.g., "OOD" or "EOOD"). Name availability can be verified through the Bulgarian Commercial Register website before submitting your application. Reserve the name as part of the registration application.
~1 day
3
Prepare and Notarize Founding Documents
Prepare the Memorandum of Association — outlining the company's name, registered address, business purpose, share structure, and details of shareholders and directors — along with the Articles of Association governing the company's internal rules. Both documents must be notarized by a Bulgarian public notary. A Declaration of Beneficial Owner identifying the ultimate beneficial owner must also be prepared. Non-residents can grant power of attorney to a Bulgarian representative to handle the notarization process locally.
Notarization required
4
Deposit Share Capital
Deposit the required share capital into a Bulgarian bank account opened for this purpose. For an OOD or EOOD, the statutory minimum is just €1 (since Bulgaria's euro adoption on 1 January 2026; previously BGN 2) — though a higher amount is advisable for practical business operations and banking credibility. The bank will issue a certificate confirming the deposit, which must accompany your registration application.
Banking
5
Submit Application to the Commercial Register
Submit the registration application — including the notarized Memorandum and Articles of Association, bank confirmation of capital deposit, proof of registered office address, identification documents of shareholders and directors, and the Declaration of Beneficial Owner — to the Bulgarian Commercial Register via the Registry Agency. Applications can be submitted online or in person. Once approved, your company receives a Unique Identification Code (UIC — Единен идентификационен код), its official legal identifier.
3–7 business days
6
Register with the National Revenue Agency (NRA)
After receiving your UIC, register the company with the National Revenue Agency (Национална агенция за приходите — NAP) for corporate income tax purposes. If your expected annual taxable turnover exceeds €51,130 (the 2026 threshold), register for VAT at the same time. Voluntary VAT registration below this threshold is also possible and can be advantageous when dealing with other VAT-registered EU businesses.
Post-registration
7
Open a Business Bank Account
Open a dedicated corporate bank account in Bulgaria using your UIC, Articles of Association, and director identification documents. This account will be used for all company transactions going forward. Bulgarian banks apply AML due diligence to new accounts — non-resident-owned companies should prepare supporting documentation on the business's purpose, ownership structure, and expected transaction flows.
Banking
8
Register Employees with the NRA (if applicable)
If your company will hire employees in Bulgaria, register with the National Revenue Agency for social security and health insurance contribution purposes. Employment contracts must comply with Bulgarian labour law. Bulgaria's employer social contribution rate is among the lowest in the EU, making it cost-effective to employ local staff.
If hiring
What Does It Cost to Register a Company in Bulgaria?
Bulgaria is one of the most cost-effective EU jurisdictions for company formation. State fees are low, the minimum share capital is nominal, and ongoing compliance costs are significantly below Western European equivalents. The main variable cost is professional advisory fees for non-residents who require local legal and accounting support.
| Cost Item | Notes | Est. Amount |
|---|---|---|
| State registration fee | Fee payable to the Registry Agency for entry into the Bulgarian Commercial Register. Online submission is cheaper than in-person. | €25–€100 |
| Notary fees | Mandatory notarization of Memorandum and Articles of Association. Fee is relatively modest by EU standards. | €100–€300 |
| Minimum share capital (OOD/EOOD) | Statutory minimum is €1 (since Bulgaria's euro adoption, 1 January 2026; previously BGN 2). A higher amount is advisable for operational credibility. Remains as company capital. | From €1 |
| Registered office address | Every Bulgarian company requires a local registered address. Virtual office and registered address services are widely available. | €200–€600/yr |
| Legal & advisory fees | Attorney assistance with document preparation, notarization coordination, and registration. Strongly recommended for non-residents. | €500–€1,500 |
| Accounting & annual compliance | Annual financial statements and tax returns mandatory. Bulgaria has competitive local accountancy fees. | €500–€2,000/yr |
Post-Registration Requirements
All Bulgarian companies must meet ongoing accounting, reporting, and governance obligations. Compliance is well-structured and relatively straightforward, particularly for smaller OODs, but professional accounting support is strongly recommended for non-resident owners who are not familiar with Bulgarian regulatory requirements.
Annual Financial Statements & Tax Returns
All Bulgarian companies must prepare annual financial statements and submit corporate income tax returns to the National Revenue Agency. Annual financial statements must also be filed with the Bulgarian Commercial Register and are publicly accessible. The tax return deadline is typically 31 March of the following year.
Corporate Governance — Manager
An OOD must have at least one appointed manager (upravitel) registered in the Commercial Register. The manager can be a foreign national and is not required to reside in Bulgaria. The manager is personally responsible for the company's compliance with Bulgarian law and tax obligations.
Accounting Records
Bulgarian companies must maintain accounting records in accordance with Bulgarian accounting standards or International Financial Reporting Standards (IFRS), depending on company size. Proper double-entry bookkeeping is required. A statutory audit is mandatory for companies exceeding specified thresholds for turnover, assets, and headcount.
Beneficial Ownership Register
Bulgaria maintains a central beneficial ownership register as part of its EU AML compliance obligations. All companies must register their ultimate beneficial owners — individuals owning or controlling more than 25% of the company — and keep this information current. The Declaration of Beneficial Owner submitted at registration must be updated whenever ownership changes.
What Americans Should Know Before Registering in Bulgaria
The 10% corporate tax is real — but GILTI may change the net picture for Americans
Bulgaria's 10% flat rate is one of the lowest corporate tax rates in the EU (only Hungary's 9% is lower) and genuinely applies to all profits. However, for US owners, the GILTI (Global Intangible Low-Taxed Income) rules introduced in 2017 can result in undistributed profits of a Bulgarian company being included in your US taxable income annually — at a rate that may effectively nullify part of Bulgaria's tax advantage. The threshold for GILTI high-tax exclusion is 18.9% (90% of the 21% US corporate rate). At 10%, Bulgarian profits fall below this and are therefore subject to GILTI without careful planning. Engage a US cross-border tax specialist before incorporating.
Notarization for non-residents requires advance planning
Bulgaria requires notarization of the founding documents, which typically requires either travelling to Bulgaria or granting a Bulgarian-qualified power of attorney to a local representative. The power of attorney itself may also need to be notarized and apostilled in the US before it is valid in Bulgaria. Build this process into your timeline — it can add 1 to 3 weeks depending on your location and local notary availability.
A local accountant is essential — not optional
Bulgarian accounting and tax regulations are entirely in Bulgarian and change regularly. The National Revenue Agency communicates exclusively in Bulgarian. VAT compliance, payroll processing, and annual reporting all require working knowledge of local systems. For non-resident owners, engaging a Bulgarian accountant from day one is not a luxury — it is a practical necessity for maintaining compliance and avoiding penalties.
Banking can be challenging for non-resident-owned companies
As with many EU jurisdictions, Bulgarian banks have tightened AML compliance requirements for foreign-owned companies. Some banks require a Bulgarian director or local representative. Plan to approach multiple banks and prepare thorough documentation: company structure chart, source of funds, business plan, and expected transaction volumes. Some foreign entrepreneurs use fintech business accounts (Wise, Revolut Business) as a bridge while establishing a traditional banking relationship. Directories like LocalVouch can help you find vetted, English-speaking Bulgarian accountants and attorneys to guide the banking process.
Bulgaria's low costs extend well beyond the tax rate
The financial case for a Bulgarian company goes beyond corporate tax. Office space in Sofia is a fraction of Western European equivalents, professional services (legal, accounting, IT) are significantly cheaper, and employer social contribution rates are among the lowest in the EU. For businesses that plan to operate with Bulgarian-based employees or contractors, the total cost savings relative to incorporating in Germany, France, or Austria can be substantial over a 3 to 5 year horizon.
Registering a Bulgarian Company Is Right for You If…
- →You want one of the lowest corporate tax rates in the EU — 10% flat on all profits, plus a 5% dividend rate that gives Bulgaria the lowest combined tax on distributed profits in the EU — with full single market access and legal credibility.
- →You are establishing a cost-efficient EU business base and want to minimise share capital requirements, registration fees, and ongoing compliance overhead.
- →You plan to hire EU-based employees or contractors and want to benefit from Bulgaria's low employer social contribution rates and competitive labour costs.
- →You need an EU company for invoicing, contracting, or VAT registration purposes and want a jurisdiction with minimal bureaucratic complexity.
- →You have received US cross-border tax advice and structured your ownership to manage GILTI exposure — enabling you to benefit fully from Bulgaria's advantageous tax environment.
We work with trusted Bulgarian corporate attorneys and accountants who specialise in company formation for non-EU nationals. From choosing between an OOD and EOOD to managing the notarization process, banking setup, and ongoing compliance — we guide you through every step, including coordination with your US tax advisor on cross-border structuring.