Bulgaria
10% flat
Corporate Tax
5–10 business days
Setup Time
BGN 2 (≈ €1)
Min. Capital
100%
Foreign Ownership
#61
Ease of Business
Bulgaria offers the lowest corporate tax rate in the EU at a flat 10%, combined with a near-zero minimum capital requirement of BGN 2. For founders seeking a cost-effective EU base with low operating expenses and full access to the European single market, Bulgaria is hard to beat on pure tax efficiency. The EOOD (single-member limited company) is the most popular structure for solo founders — it provides limited liability, straightforward governance, and no requirement for additional shareholders. While Bulgaria lacks the fully digital formation experience of Estonia, the trade-off is a significantly lower tax burden on distributed profits (10% corporate tax + 5% dividend withholding vs. Estonia's 20% on distribution). Bulgaria is best suited for founders who plan to extract profits regularly and want to minimise the combined tax cost within the EU.
- Cost-conscious entrepreneurs seeking the lowest corporate tax rate in the EU
- Freelancers and consultants who regularly distribute profits as dividends
- E-commerce and digital businesses targeting EU customers from a low-cost base
- Small businesses that want EU market access without high formation or running costs
- Remote teams looking for an affordable EU jurisdiction with a low cost of living
- Companies in IT outsourcing or software development leveraging Bulgaria's tech talent pool
Bulgaria's 10% corporate tax rate is attractive, but it does not eliminate your tax obligations elsewhere. If you live in another country and manage the company from there, your country of residence may treat the Bulgarian entity as tax resident under its own rules (place of effective management) or apply CFC legislation to tax the undistributed profits. Additionally, Bulgaria is not yet in the Eurozone or fully in Schengen, which can add friction for banking and travel. Ensure you have genuine economic substance in Bulgaria — a registered address alone is not sufficient to defend the company's Bulgarian tax residency.
At a Glance
Available Business Structures
Single-Member Limited Liability Company (EOOD)
Еднолично дружество с ограничена отговорност
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Limited Liability Company (OOD)
Дружество с ограничена отговорност
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Cost Snapshot
Tax Overview
Banking Reality Check
Timeline: 1–3 weeks
Bulgarian banks (UniCredit Bulbank, DSK Bank, Postbank, Fibank) generally require an in-person visit by the manager or a local representative with a power of attorney. Non-resident companies without local operations may face additional due diligence. EMIs such as Wise Business and Revolut Business can serve as an interim solution for receiving payments. Bulgaria's planned Eurozone accession will simplify cross-border EUR transactions once adopted.
Visa & Immigration
Bulgaria offers a Digital Nomad Visa (Type D long-stay visa) for non-EU nationals working remotely for foreign employers or their own foreign-registered companies, requiring proof of income at least 3x the Bulgarian minimum wage. Standard work permits and EU Blue Cards are available for employed roles. EU/EEA nationals can live and work freely. Bulgaria is not yet a full Schengen member, though it joined the Schengen air and sea border zone in 2024.
Free Zones & SEZs
6 free zones available
Common Mistakes
Assuming 10% corporate tax is the total tax cost on profits taken as dividends
Fix: Remember that distributed profits face an additional 5% dividend withholding tax for individual shareholders, bringing the effective combined rate to approximately 14.5%. Compare this with your personal tax obligations in your country of residence to understand the true cost.
Trying to form and operate the company entirely remotely without any local presence
Fix: While non-residents can own Bulgarian companies, practical matters — bank account opening, notarisation, and NRA registration — often require a physical presence or a trusted local representative with power of attorney. Budget for at least one trip or engage a reliable local service provider.
Ignoring the requirement to file annual financial statements in Bulgarian
Fix: All statutory filings — annual financial statements, tax returns, and commercial register submissions — must be in Bulgarian. Engage a licensed Bulgarian accountant from day one. Annual accounting costs are low (€100–€200/month) but the obligation is non-negotiable.
Expecting Eurozone-level banking convenience
Fix: Bulgaria uses the BGN (pegged to EUR at 1.95583 but not yet EUR). Cross-border EUR transfers may incur conversion fees at some local banks. Use a multi-currency EMI for international payments and keep a local BGN account for domestic obligations such as tax payments and social security contributions.
Frequently Asked Questions
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This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.