Bulgaria adopted the euro on January 1, 2026, removing the currency risk that used to complicate cross-border business here, and its 10% flat corporate tax, stable since 2007, remains one of the two lowest headline rates in the EU alongside Hungary. Here's what it takes to start a business in Bulgaria in 2026.
1. Which business structure fits you?
Before you register anything, it helps to know what you're actually choosing between.
- ET (Ednolichen Targovets). A sole trader registration, the simplest route, with personal liability for business debts.
- EOOD or OOD. Bulgaria's limited liability company, with EOOD used for a single owner and OOD for two or more. Minimum share capital is nominal, effectively €1.
2. Register your business
Registration is filed with the Commercial Register at the Registry Agency, and tax matters are handled separately by the National Revenue Agency (NRA). Most EOOD registrations complete within 1 to 3 business days. The entire process can be done remotely through a power of attorney, so foreign founders don't need to travel to Bulgaria to incorporate, though opening a bank account as a non-resident tends to be the slowest step in practice. Total remote setup cost for an EOOD typically runs €400 to €1,000.
3. Register for tax and VAT
Tax registration with the NRA happens alongside company formation. VAT registration is a separate step, required once turnover crosses the threshold described below.
4. Check licenses and permits
Bulgaria doesn't issue a single national business license. What you need depends on your industry; financial services, food production, healthcare, and transportation all carry their own sector-specific licensing requirements.
5. Understand Bulgarian taxes
Corporate income tax is a flat 10%, tied with Hungary for the lowest headline rate in the EU, and it applies uniformly regardless of profit size, with no progressive brackets to plan around. Personal income tax is also a flat 10%. Dividend tax is just 5%, and a common approach for owner-operators is to pay themselves a minimum salary, which carries social security contributions and provides access to healthcare and pension, and take the remainder as dividends taxed at that lower 5% rate with no social security attached.
VAT is 20% standard, with a 9% reduced rate for specific goods and services. Registration becomes mandatory once turnover exceeds roughly BGN 100,000 (about €51,130) over a 12-month period; below that, registration is optional.
6. Stay compliant
Bulgarian companies follow standard EU-aligned accounting and tax filing requirements. VAT-registered businesses file returns on their assigned schedule, and companies keep proper accounting records for tax purposes throughout the year.
Bulgaria business costs at a glance
| Item | Cost |
|---|---|
| EOOD/OOD minimum share capital | ~€1 (nominal) |
| EOOD remote formation (total) | ~€400 to €1,000 |
| Corporate income tax | 10% flat |
| Personal income tax | 10% flat |
| Dividend tax | 5% |
| VAT, standard rate | 20% |
| VAT registration threshold | ~BGN 100,000 (~€51,130) turnover |
Frequently asked questions
What's the corporate tax rate in Bulgaria?
A flat 10%, tied with Hungary for the lowest headline rate in the EU, stable since 2007.
How much capital do I need to start an EOOD in Bulgaria?
A nominal amount, effectively €1.
What's the dividend tax rate in Bulgaria?
Just 5%, a common reason owner-operators pay themselves a minimum salary and take the rest as dividends.
How much does it cost to register an EOOD remotely in Bulgaria?
Total remote setup cost typically runs €400 to €1,000, and the entire process can be done through a power of attorney without traveling to Bulgaria.
When do I need to register for VAT in Bulgaria?
Once turnover exceeds roughly BGN 100,000 (about €51,130) over a 12-month period. The standard VAT rate is 20%.
Fees and rates above come from the Bulgarian Registry Agency and the National Revenue Agency (NRA) as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Bulgaria-qualified accountant or lawyer about your specific situation.