How a foreigner can open a company in Bulgaria

Until recently, Bulgaria was viewed primarily as a low-tax European jurisdiction. Today, its advantages extend far beyond that. With the adoption of the euro in 2026, the country has fully integrated into the Eurozone financial system while maintaining one of the lowest corporate tax rates in the European Union. For international businesses, this means access to the European Single Market, the elimination of currency risks for transactions within the Eurozone, and relatively low business operating costs.

At the same time, the rules for doing business have become stricter. Bulgarian banks and government authorities operate according to pan-European compliance standards, so transparency of ownership structure, verification of the origin of capital, and proper accounting support have become mandatory elements of a successful market entry.

Why Bulgaria Remains Attractive for Business

Bulgaria maintains its status as one of the most competitive jurisdictions in Central and Eastern Europe thanks to a combination of low tax burden, moderate operating costs, and European regulation. For entrepreneurs, this means the opportunity to conduct business within the EU legal framework without the costs typical of major financial centers in Western Europe.

The transition to the euro has significantly simplified international settlements. Companies no longer incur conversion costs when working with most European partners, and bank transfers within the eurozone have become faster and cheaper.

No less important an advantage remains the country's geographical location. Bulgaria is situated at the crossroads of trade routes between Central Europe, the Balkans, Turkey, and the Middle East, making it a convenient hub for logistics, manufacturing, and international trade.

Key advantages of the jurisdiction include:

• corporate tax — 10%;
• minimum share capital — 1 euro;
• the possibility of full foreign ownership of a company;
• no residency requirements for directors;
• access to the European Union market;
• relatively low cost of accounting services;
• a well-developed digital infrastructure for government services.
• Foreign investors most actively establish companies in the fields of information technology, e-commerce, logistics, consulting, manufacturing, real estate, and import-export operations.

Which Business Forms Are Available to Foreigners

Bulgarian legislation places virtually no restrictions on foreign participation in the capital of local companies. A non-resident can register a business either independently or jointly with other individuals or legal entities.

EOOD — Single-Member Limited Liability Company

The most popular form of registration remains the EOOD (Ednolichno Druzhestvo s Ogranichena Otgovornost) — the equivalent of a limited liability company with a single owner. This form is considered optimal for small and medium-sized businesses due to its simplicity of registration and the limited liability of the owner.

Key features:

• one founder;
• minimum capital — 1 euro;
• the director may be a foreign citizen;
• suitable for virtually all types of commercial activity.

OOD — Multi-Member Limited Liability Company

If a company is established by several owners, the OOD form is used. It is widely applied for joint projects, family businesses, and startups, allowing flexible distribution of shares among participants.

AD — Joint-Stock Company

For large investment projects, the AD (Aktsionerno Druzhestvo) form is provided. It is used by companies planning to attract major investors or enter the stock market; however, it requires a more complex corporate structure and a higher level of corporate governance.

Branch of a Foreign Company

Foreign companies may also open a branch in Bulgaria without establishing a separate legal entity. This option suits organizations that need a presence in the local market while maintaining full control on the part of the parent company.

Joint Venture

A joint venture may be established by both Bulgarian and foreign partners. The foreign partner's share may be of any size. Joint ventures must take one of the organizational forms provided for by the Bulgarian Commercial Code.

Requirements for Foreign Founders

One of the advantages of the Bulgarian jurisdiction for foreign entrepreneurs is the absence of citizenship requirements for the founder. A foreigner may own a company 100%, serve as director personally, and manage the business remotely. Company registration can be carried out by notarized power of attorney, without the founder's personal presence in Bulgaria.

At the same time, foreign owners need to take into account several mandatory requirements.

Registered Office

Every company registered in Bulgaria must have a registered office address within the country. For this purpose, an entrepreneur may use a rented office, a coworking space, a virtual office, or the address of a law firm.

It is to this address that official correspondence from government authorities is sent, so it must be valid and accessible for receiving documents.

Ultimate Beneficial Owner

When registering a business, it is necessary to disclose information about the ultimate beneficial owner (UBO). This requirement stems from European rules on ownership structure transparency and applies to companies registered in Bulgaria.

Thus, foreign citizenship in itself does not prevent the establishment and ownership of a Bulgarian company. The key conditions are having a registered office address in the country and disclosing information about the ultimate beneficial owner.

Where Is It Best to Register a Company

Although a company can be registered in any region of Bulgaria, the choice of city directly affects future business costs, access to qualified personnel, logistical capabilities, and the speed of scaling. In Bulgaria, there is no mandatory requirement to tie a business to its place of registration; however, the region determines how easy it will be to hire employees, work with international partners, and benefit from developed infrastructure.

Sofia — Financial and Technology Hub

Sofia remains the main business center of Bulgaria, producing a significant share of the country's GDP. It is home to the largest banks, headquarters of international companies, government institutions, and representations of European organizations.

The capital is Bulgaria's largest IT hub: it is here that international development centers, outsourcing companies, and startups are concentrated. Thanks to the large number of universities, the market offers a wide selection of specialists in information technology, finance, marketing, and law.

At the same time, office rental costs and salaries in Sofia are higher than in other regions of the country, so this option is most often chosen by companies for which access to the international business environment and qualified personnel is critically important.

Plovdiv — Industry and Manufacturing

Plovdiv is considered the country's largest industrial center. The city is actively developing industrial parks that host international manufacturing enterprises in the fields of mechanical engineering, electronics, automotive components, and the food industry.

An important advantage of Plovdiv remains the lower cost of commercial real estate compared to the capital, as well as its convenient location on the transport corridor between Sofia, Turkey, and Greece. This makes the city attractive to manufacturing companies, logistics operators, and export-oriented enterprises.

Varna — Maritime Trade and International Logistics

Varna is Bulgaria's largest port on the Black Sea and one of the region's key logistics hubs. The city has traditionally specialized in international trade, shipping, logistics, and the tourism business.

The well-developed port infrastructure provides convenient access to the markets of the Black Sea region, the Caucasus, and the Middle East. In addition, Varna is gradually becoming a notable center for technology companies and service businesses thanks to the development of the university environment and the digital economy.

Burgas — Export and Energy

Burgas is actively developing as a transport, industrial, and energy center. It is home to the country's second-largest seaport, as well as Bulgaria's largest oil refining complex.

The city is particularly interesting to companies operating in the fields of international transport, energy, raw material processing, and export operations. An additional advantage remains the more affordable cost of doing business compared to the capital.

Ruse — Gateway to Central Europe

Ruse, located on the border with Romania, is often called Bulgaria's «Danube gateway.» The city is connected to Romania by a bridge across the Danube, making it a convenient base for companies operating simultaneously in the markets of Bulgaria and Northern Europe.

Ruse is particularly in demand among logistics companies, manufacturers, and enterprises that use river transport as part of international supply chains.

Step-by-Step Company Registration

With properly prepared documents, business registration usually takes just a few working days.

Step 1. Name Verification

The first stage is selecting a unique company name, which is checked through the Bulgarian Commercial Register.

Step 2. Arranging the Registered Office

After the name has been selected, documents confirming the right to use the registration address are prepared.

Step 3. Preparing Incorporation Documents

The incorporation package includes:

• the act of incorporation;
• details of the participants;
• director's information;
• the company's business activities;
• information about the ultimate beneficial owner.

Key documents — articles of association, foundation resolutions, signature specimens — must be notarized. If you are abroad, Bulgarian consulates can certify your signatures on resolutions and powers of attorney, saving you from additional trips. Signature specimens of directors, and sometimes shareholders, confirm who has the authority to sign agreements on behalf of the company.

Before submitting the documents, gather and systematize all signatures so that the Commercial Register does not find any errors or discrepancies during processing.

Step 4. Filing the Documents

The documents are filed with the Bulgarian Registration Agency.

Electronic filing is usually cheaper than paper filing and allows for faster registration.

Step 5. Obtaining a Registration Number

After registration, the company receives a Unified Identification Code (UIC), which is used when interacting with the tax authority, banks, and government bodies.

Step 6. VAT Registration

If necessary, the company is registered as a VAT taxpayer.

Many entrepreneurs do this voluntarily even before reaching the mandatory turnover threshold, especially if they work with European counterparties.

Can a Company Be Registered Remotely

Remote registration remains one of the main advantages of the Bulgarian jurisdiction.

Most registration procedures can be carried out by notarized power of attorney without the owner's personal visit.

Documents may be executed:

• at a notary in the country of residence;
• through a Bulgarian consulate;
• in certain cases — using a qualified electronic signature.

In practice, personal presence is most often required only when opening a corporate bank account.

Accounting and Mandatory Reporting

The tax system remains one of the main arguments in favor of registering a business in Bulgaria. Unlike many European countries with progressive rates and complex corporate taxation systems, Bulgaria maintains a flat tax model, which allows entrepreneurs to forecast their tax burden and company expenses in advance.

The base corporate tax rate is 10% and applies to the company's net profit after deducting documented expenses. This is one of the lowest rates in the European Union, making Bulgaria an attractive jurisdiction both for small businesses and for international companies operating in IT, logistics, manufacturing, and trade.

Personal income is also taxed at a flat rate of 10%, regardless of the amount of salary or other income. This system significantly simplifies tax calculations for both employers and employees.

VAT: New Rules After the Euro Transition

After the country's transition to the euro, the tax system was adapted to the new settlement currency. As of 2026, mandatory VAT registration is triggered when annual turnover exceeds 51,130 euros.

The standard VAT rate is 20%; however, a reduced rate of 9% applies to certain categories of goods and services. It applies, for example, to some hotel industry services and certain types of cultural services.

Companies working with partners from other European Union countries often register as VAT taxpayers voluntarily even before reaching the established threshold. This allows them to fully participate in intra-Union trade, apply reverse charge rules, and account for input VAT in their operations.

Dividend Taxation

Bulgaria maintains one of the most favorable dividend tax regimes in Europe. When profit is distributed to individuals, a rate of 5% applies, which is substantially lower than in many other EU countries.

If dividends are paid to a parent company registered in the European Union, tax withholding exemptions may apply in accordance with European legislation and double taxation treaties, provided the established conditions are met.

Employer Social Contributions

When hiring employees, employers are required to remit social and health insurance contributions. Their amount depends on the labor category and salary level, and the total burden is shared between the employer and the employee. Despite mandatory contributions, the cost of maintaining staff in Bulgaria remains one of the most competitive in the European Union, making the country attractive for companies opening development centers, service divisions, and manufacturing facilities.

Tax Incentives and International Agreements

An additional advantage of the Bulgarian tax system is its extensive network of double taxation treaties — more than 70 have been concluded. This allows foreign investors to avoid double taxation of income and to build international corporate structures more efficiently.

Tax incentives are also available for certain regions with high unemployment rates, for investors who create new jobs. In addition, the government supports projects in the fields of innovation, research, and high technology through programs co-financed by European funds.

What Foreign Entrepreneurs Should Keep in Mind

Low tax rates do not exempt companies from strict reporting requirements. All legal entities are obliged to maintain accounting records, file tax returns on time, and retain financial documentation. Tax authorities pay particular attention to cross-border transactions, dealings between related companies, and the verification of the economic substance of transactions.