Incorporate · Europe

Company Formation in Bulgaria

Lowest flat corporate tax in the EU with modest running costs. Review the legal form, tax position, treaty network and indicative cost, then talk to one team that structures it end to end.

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15+ jurisdictions

Corporate tax: 10% flat
VAT / GST: 20%
Formation: 1-2 weeks
Foreign ownership: 100% permitted
Tax treaties: 70+
Setup cost: USD 1,000 - 3,500

At a glance

Common entity: Limited Liability Company (OOD/EOOD)
Formation time: 1-2 weeks
Setup cost: USD 1,000 - 3,500
Annual cost: USD 1,200 - 3,500
Foreign ownership: 100% permitted
Tax treaties: 70+

E-commerceSaaS and technologyTradingConsulting and servicesHolding company

Best for

Lowest flat corporate tax in the EU
Low-cost EU operating base
E-commerce and trading into the single market

Less ideal for

Founders needing a strong holding-regime participation exemption
Those wanting privacy off a public register

Legal and formation

Legal system	Civil law
Common entity types	Limited Liability Company (OOD/EOOD)
Formation timeline	1-2 weeks
Minimum capital	BGN 2 (about EUR 1)
Foreign ownership	100% permitted
Minimum shareholders	1
Minimum directors	1
Local presence	Registered office in Bulgaria required
Public registry	Directors, shareholders and beneficial owners on the commercial and BULSTAT registers
Audit	Audit required above statutory size thresholds

Tax profile

Corporate income tax	10% flat
VAT / GST	20%
Withholding, dividends	5% (0% within the EU/EEA)
Withholding, interest	10% (treaty and EU reduced)
Withholding, royalties	10% (treaty and EU reduced)
Capital gains	Taxed within corporate tax (exempt for EU/EEA-listed shares)
Territorial system	No
CFC rules	Yes
Participation exemption	No broad participation exemption; EU parent-subsidiary relief applies

Every figure above is indicative. Rates, thresholds, minimum capital, ownership rules and timelines change and vary by activity, licence and structure. They are confirmed with the relevant authority and in a tailored quote before you rely on them. This is general information, not legal or tax advice.

How to set up in Bulgaria

1
Reserve the company name with the Commercial Register
2
Prepare the articles of association and founding resolution
3
Deposit the share capital into a capital account and appoint a manager
4
File with the Commercial Register and the beneficial-owner register
5
Register for VAT if required, then open a full corporate bank account

Banking reality

Local banks will open accounts but expect the director to attend in person and to show a real business rationale; wholly remote onboarding is uncommon, so EMIs are often used alongside a local account.