Business in Bulgaria 2026: registration of a limited liability company, 10% taxes and the path to a residence permit

Why entrepreneurs choose Bulgaria

Bulgaria has long remained in the shadow of more high-profile jurisdictions - Cyprus, Estonia, Portugal. But over the course of several years, the country has assembled a rare combination of factors that makes it attractive to non-EU businesses, from the UK and the US to India, the Gulf and the CIS.

Firstly, it is a full member of the European Union. A company registered in Bulgaria is an EU company with all that it entails: a single market, free movement of goods and services within the union, European counterparties who are more willing to work with an EU company than with an offshore company. Secondly, from 2025 Bulgaria fully entered Schengen, and from January 1, 2026 it switched to the euro - payments and reporting are now carried out in European currency at a fixed rate of about 1.95583 levs per euro.

Thirdly - taxes. The income tax rate of 10 percent has been in place for years and remains the lowest in the entire European Union. By comparison, in most EU countries corporate tax ranges between 20-30 percent. Add to this the low cost of registration, affordable office rent and salaries - and you get a European working platform without a premium price.

Business forms: LLC, EOOD and others

For most foreign entrepreneurs, the choice comes down to one of two forms, and both are essentially equivalent to a standard limited company.

OOD (in Bulgarian - friendship with limited liability) is a limited liability company with two or more participants. Suitable for partnership, joint venture, family business or linking a local partner with a foreign investor.

EOOD (single-person friendship with limited excuse) - the same type, but with a single owner. This is the choice of those who want complete control and a clear separation of personal and business risks. It is EOOD that is most often opened by foreign entrepreneurs who enter Bulgaria alone.

Both forms provide limited liability: the owner risks only the capital invested in the company, not personal property. Besides them there is HELL (joint-stock company) - a joint-stock company for large businesses with higher capital requirements, as well as forms for individual activities. But for starting and working in the EU market, it is OOD and EOOD that cover the vast majority of tasks.

Authorized capital: only 2 leva

One of the most pleasant surprises for those who are accustomed to serious capital requirements: the minimum authorized capital of LLC and EOOD in Bulgaria is only 2 leva - this is approximately one euro.

This is not a typo. The legislator deliberately made the threshold symbolic in order to remove the barrier to entry into business. In practice, many entrepreneurs contribute a little more - for example, the equivalent of several hundred or thousand euros, so that the company looks more reputable in the eyes of banks and counterparties and so that there is something to pay for the first expenses. But legally the minimum is enough.

The capital is deposited into a special savings account in a Bulgarian bank even before the company is registered. The bank issues a certificate of deposit of funds - this document is then attached to the application to the Trade Register. After registration, the money is transferred to the company’s current account and can be used in circulation. That is, capital is not frozen - these are the company's working capital, not collateral.

What is needed to register a company

To open a company in Bulgaria, a foreigner will need to collect a clear set of elements. The good news: personal citizenship and residency do not play a role - a citizen of almost any country, including Russia, can own a Bulgarian company.

The basic kit looks like this:

• Manager (manager) - an individual who manages the company and signs documents. It may be the foreign owner himself.
• Legal address in Bulgaria - the real address of registration of the company. Often at the start this is the address of a rented office or the address provided by a service company.
• Company name - unique, previously checked for availability in the registry.
• Constituent documents - charter (for EOOD - constituent act), decision on creation, sample signatures.
• Savings account at the bank and a certificate of capital deposit.

A foreigner's documents (passport, power of attorney if necessary) usually require notarization and an apostille, as well as translation into Bulgarian. If the owner cannot be present in person, registration can be carried out by proxy through a representative.

Stages of company registration step by step

The registration process in Bulgaria is smooth and predictable. If the documents are in order, it takes a matter of days. Here's the logic step by step:

1. Choice of form and name. We decide between LLC and EOOD, check the uniqueness of the name in the Trade Register and reserve it.
2. Preparation of documents. We prepare the charter or constituent act, decision on creation, appointment of a manager, consent to management, sample signatures. The foreigner's documents are translated and certified.
3. Opening a savings account. A special account is opened in a Bulgarian bank, the authorized capital is deposited, and the bank issues a certificate.
4. Submission to the Trade Register. The application with attachments is submitted to the Registration Agency (Registration Agency) - online it is cheaper and faster than on paper.
5. Registration and issue of number. The register reviews the application in approximately 3 business days and assigns the company a single identification code (UIC).
6. After registration. A full-fledged current account is opened, if necessary, the company is registered for VAT, lease agreements and employment contracts are concluded.

In practice, taking into account the preparation of documents and the work of the bank, the entire cycle takes approximately from one to several weeks.

Trade Register and Registration Agency

The heart of the entire procedure is the Trade Register (Targovski registr), which is maintained by the state Agency for Registration (Registration Agency). This is a public electronic register of all Bulgarian companies.

Not only the creation of a company, but also any subsequent changes pass through the register: change of manager, change of capital, sale of shares, change of address, liquidation. All these events are entered into the register and become publicly available - this is part of European business transparency.

There are two ways to submit your application. Online filing through the electronic portal of the registry is cheaper - the state fee for registering an LLC/EOOD with electronic filing is about 55 leva, while paper filing costs approximately twice as much. Online submission requires a qualified electronic signature. In practice, foreigners often act through a local representative or service company that already has both a signature and experience working with the registry.

Bulgarian business taxes: 10 percent and VAT

The Bulgarian tax system is one of the main arguments in favor of registering a company here. It's simple and predictable.

Income tax - flat rate 10 percent. This is the lowest corporate tax rate in the European Union and is independent of profit. Income tax for individuals is also a flat 10 percent.

VAT - standard rate is 20 percent, there is a reduced rate of 9 percent for certain categories (for example, for some tourist services). VAT registration is required upon reaching the established turnover threshold; before it you can work without VAT, and when working with counterparties from the EU, registration is often required immediately.

Tax on dividends - 5 percent when distributing profits to the owner. Here is an important detail: in the draft budget for 2026, an increase in this rate to 10 percent was discussed, but due to the political situation, the increase was not adopted, and the rate remains at 5 percent for 2026. This figure should be verified before distributing profits, since the topic remains on the agenda.

Reporting since 2026 has been carried out in euros - after the country’s transition to a single currency, all amounts in declarations and accounting are indicated in European currency.

Key parameters in one table

To keep the main numbers at hand, let's collect them in a compact table. Controversial and moving values ​​are marked as approximate - before starting they should be checked with current data.

The numbers give a general picture, but the specific situation depends on the type of activity, turnover and ownership structure - it is better to calculate the details for your project.

Company in Bulgaria for foreigners

A citizen of almost any country can own a Bulgarian company. A foreigner has access to 100% ownership of the company - a local partner is not required by law. This also applies to entrepreneurs from Russia: it is legal for a Russian to open and maintain a Bulgarian company.

It's important to be here. Businesses from Russia operate in Bulgaria within the framework of European law and the EU sanctions regime. This means enhanced compliance: banks carefully check the source of funds, beneficiaries and the nature of the activity. Opening a bank account may take longer and will require a transparent explanation of where the money is coming from and what the company will do. Activities falling under sanctions restrictions are excluded - we are talking only about legal business.

In practice, through a Bulgarian company, they successfully work in IT and services, trade, consulting, tourism, and real estate. The key to smooth work is a clean structure, real economic activity and a willingness to answer the bank's questions with documents. With this approach, Bulgaria gives non-EU entrepreneurs a working and legal entry into the EU economy.

Residence permit through business: how it works

Registration of a company in Bulgaria does not in itself provide a residence permit - this is a common misconception that should be dispelled immediately. Owning a company and living in the country are two different things. But a business can become the basis for a legal residence permit if you choose the right path.

One of the popular options is trade mission foreign company registered in Bulgaria. On this basis, approximately up to two representatives of such a representative office can obtain a residence permit. At the same time, the parent company must be actually operating, with a history of work and turnover, and in Bulgaria a real office is required, not a virtual address. Conditions have become more stringent in recent years - the registry and the migration service check that the activities are carried out for real.

Another way - economic activity and employment in your own company subject to a number of conditions, as well as reasons not directly related to business: family reunification, pension with a stable income, study. Each scenario has its own requirements for income, housing and documents, so the path to a residence permit through business should be built individually. We have collected a detailed analysis of the reasons in the material about Bulgarian residence permit.

Relocation options: from residence permit to EU passport

A business platform in Bulgaria is the first step, but many are looking further: to a stable status and an EU passport. Here it is useful to see the entire staircase.

• Residence - an annual residence permit on one of the legal grounds (representation of a company, economic activity, pension, family). Renewed annually.
• Permanent Residence - permanent residence, available approximately after five years of continuous residence under a residence permit. Gives almost full rights to a local resident.
• Long-term EU resident / naturalization - the next level, which opens the path to citizenship upon fulfilling the qualification, knowledge of the language and legal income.
• Citizenship by descent - a separate and often the fastest route to an EU passport for those who have Bulgarian roots (Bulgarian ancestors on their father's or mother's side). There is no residence requirement here, and citizenship itself gives the right to live and work in any EU country.

Important: Bulgaria's so-called golden passports - citizenship by investment - will be canceled in 2022. You cannot buy a passport with an investment, and any such offers today are illegitimate. But the path through the roots and naturalization remain fully functional. You can find out more about approaches to the EU passport on the program page Bulgarian citizenship and in our analysis Bulgarian citizenship by descent.

If you want to understand which path is right for your family and business, leave a request - we will analyze your situation and offer a specific plan. Get a consultation.

Access to the EU and Euro market from 2026

The main value of a Bulgarian company is not the low tax rate itself, but what this company provides access to. The company, registered in Bulgaria, is a full-fledged participant in the single market of the European Union.

This means freedom to trade goods and services within the entire union without customs barriers, the opportunity to work with European suppliers and clients on equal terms, access to European payment systems and business support funds. For a non-EU entrepreneur, this is a qualitatively different level of the market compared to a local or offshore company.

On January 1, 2026, Bulgaria switched to the euro - the lev is withdrawn from circulation at a fixed rate of about 1.95583 per euro. For business, this means settlements and reporting in European currency, the absence of currency risks when working with the eurozone and simplified transactions with EU partners. In fact, the Bulgarian company now operates in the same currency as most of its European counterparties - this removes a whole layer of friction and makes the country even more convenient as an entry point into the European Union.

How much does it cost to run a company?

Registration is a one-time expense, but the company must be maintained. Here, Bulgaria also compares favorably with more expensive EU jurisdictions, although it’s worth doing the math in advance.

Basic regular expenses consist of several parts. This is an accounting service - record keeping and reporting is mandatory, and most foreign owners hire a local accountant or outsourcing company. This is a legal address and, if necessary, office rent - especially if the business is applying for a residence permit through a representative office, where a real office is required. This includes banking services for a current account and government fees for changes in the register.

If a company hires employees, salaries and social contributions are added - but they are also noticeably lower in Bulgaria than in Western Europe. In general, the cost of owning a Bulgarian company remains one of the lowest in the European Union, which makes the country attractive not only for starting, but also for long-term presence. Our material about cost of living in Bulgaria.

Common mistakes and how to avoid them

Bulgaria is a business-friendly country, but even here entrepreneurs fall into the same mistakes. Let's look at the most common ones.

Bet on buying real estate for the sake of a residence permit. The most common misconception: I bought an apartment by the sea and received a residence permit. This is wrong. Purchasing real estate in itself does not provide a residence permit; you need a separate legal reason for residence. Real estate may be a nice addition, but it is not the foundation.

Calculation for gold passports. Bulgarian investment citizenship has been revoked. Any offers to buy a passport for investments today are either outdated information or a scam.

Underestimation of compliance. Registering a company is quick, but opening a bank account and working with the bank requires transparency. An ill-conceived structure and unwillingness to explain the source of funds slow down the launch.

Ignoring tax residency. Owning a Bulgarian company does not automatically make you a Bulgarian tax resident - residency is determined by residence and center of interests. We examine this question in detail in the material about taxes in Bulgaria.

Bottom line: who is suitable for doing business in Bulgaria?

Bulgaria is a working and inexpensive entry into the EU economy for a non-EU entrepreneur. A company OOD or EOOD can be opened with a symbolic capital of 2 leva and registered in a matter of days, the income tax is 10 percent, and the company gains access to the entire EU single market and operates in euros from 2026.

This option is especially good for those who run an international or online business, want a European company without a premium cost of maintenance, and plan a gradual move through a residence permit to permanent residence and, in the future, to an EU passport. For owners of Bulgarian roots, business can be successfully combined with citizenship by origin.

At the same time, this is not a magic button: a residence permit is not issued for the very fact of a company or the purchase of an apartment, banks require transparency, and there are no more golden passports. With a sober approach and competent support, Bulgaria provides what smart investors value - predictability, low cost and real access to Europe. If you want to build your own scenario - from company registration to EU status - discuss the problem with our specialists.