Do business in Bulgaria

Bulgaria offers strategic access to the EU single market with one of Europe’s lowest corporate tax rates at just 10%, making it highly attractive for international businesses. The country provides excellent connectivity to major European markets and beyond, with a skilled multilingual workforce and competitive labor costs. Bulgaria attracts significant foreign investment with fast incorporation (4-8 working days), minimal bureaucracy, and a business-friendly environment ranked highly by the World Bank for ease of doing business. The country is particularly attractive for startups and tech companies, with access to EU funding programs, a growing startup ecosystem, and no restrictions on foreign ownership. Bulgaria’s stable economy, modern infrastructure, and strategic location at the crossroads of Europe and Asia make it an ideal gateway for international expansion.

No, Bulgaria enables full remote company setup through digital processes and power of attorney arrangements. The entire incorporation process can be conducted remotely without requiring travel to Bulgaria, though notarization is necessary. You need to provide a certified Power of Attorney (apostilled in most cases) and send the original document via courier to complete the registration. All incorporation documents can be prepared and filed digitally, and a registered address service can be arranged without physical presence. However, for bank account opening, some banks may require in-person verification or video conferences, though many now accept remote procedures with proper documentation.

After incorporation, Bulgarian companies must:

File annual financial statements with the Bulgarian Trade Register by March 31st each year

Submit corporate income tax returns (10% flat rate on profits)

Register and report for VAT if turnover exceeds BGN 50,000 (standard rate: 20%)

Implement SAF-T (Standard Audit File for Tax) reporting from January 2026 for large companies

Maintain proper accounting books and records in accordance with Bulgarian accounting principles

Conduct mandatory annual audits for companies exceeding certain thresholds (BGN 1 million revenue or 50+ employees)

Report beneficial ownership changes to relevant authorities

Bulgaria offers streamlined digital processes through the National Revenue Agency’s online systems for most compliance tasks.

Yes, Bulgaria allows 100% foreign ownership of companies in most sectors with no restrictions or distinctions between Bulgarian and foreign investors. There are no citizenship or residency requirements for shareholders or directors, and foreign investors enjoy equal rights and treatment as locals. Non-EU nationals can establish Bulgarian entities without local partners, though they need to obtain Bulgarian tax identification numbers. Directors and shareholders of any nationality are permitted for standard commercial activities, making Bulgaria one of the most foreign-friendly jurisdictions in the EU for business establishment.

Bulgaria offers substantial incentives including:

Lowest corporate tax rate in the EU: 10% flat rate on all profits

Low dividend tax: 5% on profit distributions to shareholders

Investment incentives: Various regional and sectoral support programs available

EU funding access: Eligibility for EU grants and development programs as an EU member state

R&D incentives: Special tax treatment for research and development activities

Free economic zones: Reduced administrative procedures and potential tax benefits in designated areas

Digital nomad visa: New 2025 program allowing remote workers to reside in Bulgaria

Startup-friendly ecosystem: Growing support infrastructure and government initiatives for innovative businesses

Bulgaria’s combination of the EU’s lowest taxes, minimal bureaucracy, and comprehensive support programs creates an exceptionally attractive environment for foreign investment and business growth.