Bulgaria: company formation and residency
BulgariaEuropeOverview
Bulgaria combines EU membership with flat taxes: 10% corporate income tax, 10% personal income tax and 5% on dividends. It has been a full Schengen member since 1 January 2025, and since 1 January 2026 its currency is the euro, which has simplified invoicing, banking and company capital.
The usual model is a Bulgarian company, often a single-member EOOD, combined with personal residence in Bulgaria. The company pays 10% on its profits and a resident owner pays 5% on dividends, which works well for online services, consulting and export businesses. The rates only help if both the company and the owner are genuinely based in Bulgaria.
EU citizens register their residence with a simple certificate. Non-EU citizens need a long-stay D visa followed by a residence permit, for example as representatives of a foreign company's trade office, as property buyers, as pensioners or, since 2025, as digital nomads. Citizenship by investment was abolished in 2022.
Redomiciled coordinates company and residence steps with licensed Bulgarian lawyers and accountants, who give the legal and tax advice.
Bulgarian EOOD company formation
A Bulgarian EOOD is a single-member limited liability company registered in the Commercial Register of the Registry Agency, which foreign individuals and companies can own outright. As of October 2026 the minimum capital is €1 and profits are taxed at a flat 10%.
An EOOD is formed by one founder, a person or a company of any nationality, who adopts the articles of association, appoints a manager and pays in the capital. The application goes to the Commercial Register online with a qualified electronic signature or on paper, and new companies are registered by the end of the next working day.
The company needs a seat and management address in Bulgaria and, where its owner is not an individual already shown in the register, a declaration of its beneficial owners. The owner can manage the company personally or appoint a manager. Since 1 January 2026 capital is in euro, and the minimum capital is €1.
Each year the company files its corporate tax return between 1 March and 30 June and publishes its annual financial statements by 30 September. VAT registration becomes compulsory once domestic turnover exceeds €51,130 in a calendar year, and the standard rate is 20%.
Bulgarian lawyers and accountants prepare the formation documents and give tax advice; Redomiciled coordinates the process.
Who it suits
Online service and consulting businesses
You sell services internationally and can run the business from Bulgaria.
EU founders relocating
You want an EU base with flat taxes and plan to live in Bulgaria for most of the year.
Export-focused digital businesses
Most of your customers are outside Bulgaria, where business-to-business sales often fall outside Bulgarian VAT.
Non-EU founders with an established company
You want a Bulgarian operating company alongside a residence permit.
Requirements
- Required
One founder
An individual or a company of any nationality holds all the shares.
- Required
Manager
The owner or an appointed manager runs and represents the company.
- Required
Seat and management address in Bulgaria
Recorded in the articles and in the Commercial Register.
- Required
Capital of at least €1
Paid in when the company is formed.
- Depends on your case
Beneficial owner declaration
Required where the owner is a company or where someone other than the registered owner controls it.
- Depends on your case
Bulgarian bank account
Not a legal condition for every company, but expected in practice and for residence applications.
- Depends on your case
VAT registration
Compulsory above €51,130 of domestic turnover in a calendar year; voluntary registration is possible.
Documents
- Articles of associationName, seat, business objects, capital and management of the company.
- Manager's consent and specimen signatureThe manager's notarised acceptance of the appointment.
- Evidence of capital paymentConfirmation that the capital has been paid in.
- Company documents for corporate foundersA current register extract and, for foreign companies, legalised and translated documents.
- Beneficial owner declarationFiled with the application where it is required.
- Dividend tax for individuals
- 5%Proposed rise to 10% for 2026 withdrawn in December 2025As of 2026-10-25 · [4]
- EOOD minimum capital
- €1 (since 2026-01-01; previously 2 lev)As of 2026-10-25 · [7]
- Decision on a new registration
- By the end of the next working dayAs of 2026-10-25 · [9]
- Corporate tax return
- 1 March to 30 June of the following yearAs of 2026-10-25 · [11]
- Publication of annual financial statements
- By 30 September of the following yearAs of 2026-10-25 · [10]
- VAT standard rate
- 20%As of 2026-10-25 · [6]
- VAT registration threshold
- €51,130 domestic turnover in a calendar year (since 2026-01-01)As of 2026-10-25 · [5]
- Report on accounts held abroad
- Annual report to the BNB when year-end balances total €25,000 or moreSince 2026-04-01, replacing quarterly reportsAs of 2026-10-25 · [19]
Timeline
- 1Name and structureChoose the company name, reserve it if needed and decide who manages the company.
- 2Documents and signaturesArticles, the manager's consent and, for corporate founders, legalised company papers.
- 3Capital paymentPay in the capital, at least €1.
- 4Commercial Register filingOnline or on paper; new companies are registered by the end of the next working day.
- 5Bank account and accountingOpen a bank account, appoint an accountant and register for VAT where needed.
- 6Annual cycleCorporate tax return by 30 June, financial statements published by 30 September, and advance tax payments once revenue grows.
Tax notes
- Corporate income tax is a flat 10% of taxable profit. Dividends paid to individuals are taxed at 5%, withheld by the company. The proposal to raise the dividend tax to 10% for 2026 was withdrawn in December 2025, and the 2026 budget adopted in July 2026 kept 5%.
- A salary from your own company is taxed at the flat 10% personal rate, with social security contributions on top, so the mix of salary and dividends is worth planning with an accountant.
- Advance payments of corporate tax are not due in the year of formation or the following year; after that they depend on the company's revenue.
- Managing a foreign company from Bulgaria can give it a permanent establishment and Bulgarian tax exposure. The reverse also holds: an EOOD run from another country may be taxed there.
- The standard VAT rate is 20%. Services to business customers in other EU countries and exports outside the EU are generally outside Bulgarian VAT or zero-rated, which suits export-oriented businesses.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- Bulgarian banks onboard local companies with resident owners most easily; non-resident owners should expect more questions.
- Income is expected to flow through a Bulgarian account, which also supports the company's substance and any residence application.
- Accounts with foreign banks or payment institutions are allowed, but count towards the annual BNB report once balances reach €25,000.
Questions
Can a foreigner open a company in Bulgaria?
Yes. A foreign individual or company can be the sole owner of an EOOD, and living in Bulgaria is not required to form it. The company needs a Bulgarian seat and management address, and banks may ask non-resident owners for more documents.
What is the minimum capital for a Bulgarian EOOD?
€1 since the euro was adopted on 1 January 2026; before that it was 2 lev. The capital is paid in when the company is formed.
How long does it take to register a Bulgarian company?
The Registry Agency registers new companies by the end of the next working day after a complete application. Preparing documents and signatures, and legalised papers for foreign corporate founders, usually takes longer than the registration itself.
How are dividends from a Bulgarian company taxed?
Bulgaria withholds 5% on dividends paid to individuals, after the company has paid 10% corporate tax. If you live elsewhere, your country of residence may also tax the dividend, with credit depending on its treaty with Bulgaria.
What are the annual obligations of a Bulgarian EOOD?
The corporate tax return is filed between 1 March and 30 June, financial statements are published by 30 September, and VAT returns follow if the company is registered. Foreign account balances of €25,000 or more are reported to the Bulgarian National Bank each year.
Bulgaria residency and tax residence
Bulgarian residence is a registration certificate for EU citizens and a D visa followed by a residence permit for everyone else. Since 2025 the routes include a digital nomad permit; as of October 2026, people staying more than 183 days in any 12-month period, or whose centre of vital interests is in Bulgaria, are tax resident.
EU and EEA citizens apply to the Migration Directorate or a regional police directorate within three months of arrival and usually receive their registration certificate on the same day, valid for up to five years. They qualify through work or self-employment, or through health insurance and sufficient means. After five years of lawful residence they can obtain permanent residence.
Non-EU citizens first obtain a type D visa, valid for up to six months, and then apply for a residence permit in Bulgaria. The main routes are representing a registered trade office of a foreign company whose turnover was at least BGN 100,000 (€51,129) in each of the two previous years, buying Bulgarian property worth at least BGN 600,000 (€306,775), drawing a pension with sufficient means, and the digital nomad permit.
The digital nomad permit was adopted in June 2025, with implementing rules in December 2025. Applicants need annual income of at least 50 minimum monthly wages from employers or clients outside Bulgaria, may not work for Bulgarian clients, and receive a one-year permit that can be extended once. A trade office represents its foreign company but may not trade itself; operating income needs a separate Bulgarian company.
Tax residence follows its own test: you are resident if you spend more than 183 days in Bulgaria in any 12-month period or your centre of vital interests is there. In our experience, permit renewals go more smoothly when you genuinely live in Bulgaria; trips made only to renew invite questions.
Bulgarian immigration lawyers prepare and file the applications and give legal advice; Redomiciled coordinates the move.
Who it suits
EU founders and remote workers
You can register quickly and want to base yourself and your company in Bulgaria.
Non-EU owners of established companies
Your foreign company meets the turnover test and can open a trade office in Bulgaria.
Remote employees and freelancers from outside the EU
You earn from clients or employers abroad and want one or two years in the EU.
Retirees and property buyers
You live on a pension or plan to buy property and want a straightforward residence permit.
Requirements
- Required
Bulgarian address
Rented or owned; needed for the certificate or permit and for local registrations.
- Required
Health insurance
Required for EU certificates based on sufficient means and for non-EU permits.
- Required
Proof of the qualifying basis
Work, sufficient means, trade office, property, pension or remote income, depending on the route.
- Required
Type D visa for non-EU citizens
Obtained from a Bulgarian consulate before applying for the residence permit.
- Required
Time in Bulgaria
Permanent residence requires five years with limited absences, and tax residence depends on days and ties.
- Depends on your case
Bulgarian bank account
Needed for pensioners receiving their pension under that route and expected in practice for most applicants.
- Depends on your case
Bulgarian company
Useful for operating income but not needed for most residence routes.
Documents
- PassportValid for the whole intended stay.
- Address evidenceLease or title deed for the Bulgarian address.
- Health insurance policyCovering the period of stay.
- Proof of income or meansBank statements, pension certificate, or employment and client contracts, depending on the route.
- Route-specific papersTrade office registration with the company's tax and turnover evidence, the property deed, or the remote work contracts.
- Individual tax residence
- More than 183 days in any 12-month period, or centre of vital interests in BulgariaAs of 2026-10-25 · [12]
- EU registration certificate
- Apply within 3 months of arrival; valid up to 5 yearsAs of 2026-10-25 · [13]
- Type D visa
- Valid up to 6 months; stays of up to 180 daysAs of 2026-10-25 · [17]
- Trade office route, foreign company turnover
- At least BGN 100,000 (€51,129) in each of the 2 prior years; up to 2 representativesEuro figure converted at 1.95583 lev per euroAs of 2026-10-25 · [14]
- Property route, minimum value
- BGN 600,000 (€306,775)Euro figure converted at 1.95583 lev per euroAs of 2026-10-25 · [14]
- Digital nomad permit
- Income of at least 50 minimum monthly wages a year; 1 year, extendable onceAdopted June 2025; implementing rules December 2025As of 2026-10-25 · [15]
- Permanent residence, non-EU citizens
- After 5 years, with no more than 30 months of absence in totalAs of 2026-10-25 · [14]
- Citizenship by investment
- Abolished in 2022As of 2026-10-25 · [18]
- Schengen membership
- Full member since 2025-01-01As of 2026-10-25 · [20]
Timeline
- 1Choose the routeMatch nationality, income and plans to the right legal basis.
- 2Prepare the basisRegister a trade office, buy property or gather income evidence; EU citizens rent a home and arrange insurance.
- 3Type D visa (non-EU)Apply at a Bulgarian consulate; the visa allows stays of up to 180 days.
- 4Residence applicationFiled with the Migration Directorate; EU citizens usually receive their certificate the same day.
- 5Local registrationsTax registration, bank account and, where relevant, health insurance and social security.
- 6Renewals and permanent residenceNon-EU permits are renewed regularly; permanent residence is possible after five years.
Tax notes
- You are Bulgarian tax resident if you spend more than 183 days in the country in any 12-month period or your centre of vital interests is there. A permanent address alone does not make you resident if your vital interests are elsewhere.
- Residents pay a flat 10% on their worldwide income and 5% on dividends; sole traders pay 15%.
- Your previous country may continue to treat you as resident, especially if you keep a home, family or business there. Exit rules, controlled foreign company rules and tax treaties decide the outcome, so take advice in both countries.
- A foreign company managed from Bulgaria by a resident owner may have a permanent establishment in Bulgaria and face Bulgarian corporate tax.
General information, not tax advice. Your position depends on your circumstances.
Banking fit
- A personal Bulgarian account is usually straightforward once you have an address and a residence document, subject to the bank's own checks.
- Pensioners need a Bulgarian account to receive their pension under the pensioner route.
- As a Bulgarian tax resident, information on your foreign accounts reaches the National Revenue Agency through automatic exchange, so keep those accounts documented.
Questions
How can an EU citizen move to Bulgaria?
Register within three months of arrival with the Migration Directorate or a regional police directorate. You need a passport or ID, an address and proof of work, self-employment or health insurance with sufficient means. The certificate is usually issued the same day and lasts up to five years.
Does Bulgaria have a digital nomad visa?
Yes. A digital nomad residence permit was adopted in June 2025, with implementing rules from December 2025. Applicants need annual income of at least 50 minimum monthly wages from employers or clients outside Bulgaria. The permit lasts one year and can be extended once.
Can I get Bulgarian residency by buying property?
Yes. Non-EU citizens who buy Bulgarian property worth at least BGN 600,000, about €306,775, can apply for a long-term residence permit after obtaining a D visa. The permit is renewed regularly, and permanent residence can follow after five years.
How many days do I need to spend in Bulgaria to be tax resident?
More than 183 days in any 12-month period, or a centre of vital interests in Bulgaria. Fewer days can still make you resident if your home, family and business are there, and your previous country applies its own tests.
Can I get Bulgarian citizenship by investment?
No. Bulgaria abolished citizenship by investment in 2022. Investment can still support a residence permit, which can lead to permanent residence after five years.
Banking in our network
We do not publish institution names: the right partner depends on your profile, and each institution keeps its own view on who it will serve.
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No partner institution in our network is based here; companies and residents here are introduced to partners in other jurisdictions.
- A Bulgarian bank account is usually expected for a Bulgarian company and for residence applications, because it shows that income really flows through Bulgaria. Opening one is subject to each institution's due diligence.
- Bulgarian companies can also use EU payment institutions and foreign banks. Since 1 April 2026 they file an annual statistical report with the Bulgarian National Bank when their foreign account balances total €25,000 or more at year end.
- Bulgaria is not yet part of our banking network; the banking assessment shows whether institutions elsewhere in the network suit your profile.
Questions
What are the tax rates in Bulgaria?
Corporate income tax is 10%, personal income tax is a flat 10% and dividends are taxed at 5%. A proposal to double the dividend tax for 2026 was withdrawn in December 2025. The standard VAT rate is 20%.
Does Bulgaria use the euro?
Yes. Bulgaria joined the euro area on 1 January 2026 at a fixed rate of 1.95583 lev per euro. Company capital in the Commercial Register was converted automatically.
Can a non-EU citizen live in Bulgaria?
Yes, with a D visa followed by a residence permit. Common routes are representing a foreign company's trade office, buying property worth at least BGN 600,000, a pension, or the digital nomad permit introduced in 2025. Permanent residence is possible after five years.
Sources
- 1.European Commission: Bulgaria and the euro, retrieved 2026-10-25
- 2.Ministry of Finance: Corporate income tax, retrieved 2026-10-25
- 3.National Revenue Agency: Annual tax on personal income, retrieved 2026-10-25
- 4.National Revenue Agency: Tax on dividends, retrieved 2026-10-25
- 5.National Revenue Agency: VAT registration, retrieved 2026-10-25
- 6.National Revenue Agency: VAT in Bulgaria, retrieved 2026-10-25
- 7.Registry Agency: Commercial Act (text as of January 2026), retrieved 2026-10-25
- 8.Registry Agency: State fees in euro from 1 January 2026, retrieved 2026-10-25
- 9.Registry Agency: Commercial Register and Register of Non-Profit Legal Entities Act, retrieved 2026-10-25
- 10.National Statistical Institute, NRA and Registry Agency: Order on annual financial statements 2025, retrieved 2026-10-25
- 11.National Revenue Agency: Filing the corporate tax return, retrieved 2026-10-25
- 12.National Revenue Agency: Resident and non-resident individuals, retrieved 2026-10-25
- 13.Ministry of Interior, Migration Directorate: Citizens of the EU, retrieved 2026-10-25
- 14.Ministry of Labour and Social Policy: Foreigners in the Republic of Bulgaria Act (consolidated, 2026), retrieved 2026-10-25
- 15.State Gazette No. 52/2025: amendments to the Foreigners Act (digital nomads), retrieved 2026-10-25
- 16.State Gazette No. 109/2025: Council of Ministers Decree No. 286 (implementing rules), retrieved 2026-10-25
- 17.Ministry of Foreign Affairs: Visa type D, retrieved 2026-10-25
- 18.National Assembly: Citizenship by investment abolished (24 March 2022), retrieved 2026-10-25
- 19.Bulgarian National Bank: New reporting of accounts held abroad (11 March 2026), retrieved 2026-10-25
- 20.Council of the EU: Land border controls with Bulgaria and Romania lifted (12 December 2024), retrieved 2026-10-25
- 21.Redomiciled internal briefing: Bulgaria relocation and tax, retrieved 2026-10-25
Reviewed by the Redomiciled team on .
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