Incorporate in Bulgaria

Last updated: July 2026

Bulgaria has the EU’s lowest tax burden: 10% CIT, 5% on dividends, a flat 10% income tax. An EOOD is formed with €1 of capital and invoices in euros since 2026. The trade-off: slow administration and banks stricter than people expect.

The essentials · incorporate · July 2026

For founders billing real work. This sheet scores the company: corporate tax, substance, cost. Residence and capital have their own sheets.

10%

Corporate tax

$150–$1,200

Setup

USD, indicative

$1,000–$3,000

Per year

USD, indicative

7/10

Ease

Ranking, higher is better

6.5/10

Banking

Ranking, higher is better

7/10

Enforcement

Who it fits

Freelancer or small agency actually moving to Bulgaria who wants 10% + 5% on exit
Founder wanting an EU company in euros with one of the bloc’s lowest structural costs
European B2B services where EU credibility matters more than the country’s image

Substance and CFC

CFC 5/10 · CFC ATAD
Enforcement 7/10 · Contrôles modérés (indicatif)

The real drawbacks

French or German tax residents keeping their life at home: effective management and CFC catch the company
Need for fast, fully English-speaking administration
Mailbox setups: Bulgarian banks ask for real activity and real clients

Business scores

Bulgaria Hover or tap a point for the score and detail.

See the numbers

Criterion	Bulgaria
Setup	7.0
Banking	6.5
Labour	7.5
Reputation	7.0
E-gov	6.5
Holding	6.0
CFC	5.0
Substance	7.0

Rates	Value
Corporate tax	10%
Exit / distribution	5%

Ranking methodology. Compare this hub in Ranking.

How to read scores here

Bulgaria scores 7/10 on ease: online commercial register, single-member EOOD, symbolic minimum capital. CIT is 10% and dividend withholding 5%, about 14.5% combined on a distributed profit, the lowest in the EU. Banking 6.5/10: local banks open for a director who is present with a clear file, much less for a non-resident with no tie to the country.

Enforcement 7/10: moderate audits, but the NRA (tax authority) cross-checks VAT and flows. CFC follows ATAD. Joining the eurozone on 1 January 2026 removes currency risk for European clients. Versus Cyprus, Bulgaria is cheaper and simpler, without the holding network; versus Estonia, it taxes earlier but far less on exit. The reputation score is still held back by perceived corruption.

Cost of operating

Band: Low

Setup (USD): $150–1200
Annual (USD): $1000–3000

Among the cheapest EU setups (~€100 registry, €1 capital). Year one often ~€1.5–3k with accounting (~€80–150/month). 10% CIT is attractive: structural cost stays low at low volume.

Setup: about €100 in registry fees, €1 of capital, plus translations and lawyer or agent fees if you do not speak Bulgarian (often €300–1,000). Annual: accounting at €80–150 per month for simple flows, more with intra-EU VAT and payroll. Registered address and agent if you are not on site.

Hidden costs: certified translations, trips for banking, and admin time. Structural cost stays low while volume is small.

Substance, banking, enforcement

Bulgarian taxation only works if the company is actually managed from Bulgaria. A director who lives and decides in France makes the company French under the place-of-effective-management test, whatever the registered office. Credible substance: a resident director, a real office or address, current local books, traceable contracts and payments. Banks and the NRA look at consistency between declared activity and flows.

CFC and tax residence

Bulgaria applies ATAD CFC rules. For a shareholder resident in another EU state, their own residence decides: France can pull back the profits of a low-taxed Bulgarian company if substance is thin. The Bulgarian 10% only pays off if you become a Bulgarian tax resident yourself, with 10% income tax and 5% on dividends.

Practical setup path

Typical path: name reservation and EOOD registration at the commercial register, capital deposit, VAT registration if needed, a local accountant, and a bank account with an in-branch appointment. If you move, align the start of Bulgarian tax residence with leaving your home country, and keep proof of life on site (lease, presence, centre of interests).

Compare with

South Cyprus (Non-Dom) Start a company
Estonia Start a company · Settle here
Georgia Start a company · Settle here

FAQ

How much does a Bulgarian EOOD cost?

About €100 in registry fees and €1 of capital. With translations, agent and accounting, budget roughly €1,500–3,000 in year one.

How is a dividend taxed in Bulgaria?

10% CIT on profit, then 5% withholding on the dividend paid to an individual, about 14.5% in total.

Do you need to live in Bulgaria to benefit?

In practice, yes. Without Bulgarian tax residence and effective management on site, your home country can tax the company and the dividends.

Does Bulgaria use the euro?

Yes, since 1 January 2026. The lev was replaced at the fixed rate of BGN 1.95583 per €1.

Sources (cost)

https://baltpartners.com/en/blog/cheapest-countries-register-company-europe

How to read scores and cost bands: Ranking methodology.