Single-Member Limited Liability Company (EOOD) in Bulgaria
EOOD · Formation from $30
Last verified: June 13, 2026
Corporate Tax
10.0%
State Tax
0.0%
Formation Cost
$30
Annual Fee
$16
Comparison Scores
Privacy, remote setup, banking, and tax efficiency
Calculate full formation cost
Break down one-time filing fees and recurring costs for any supported entity type.
Who Should Choose This?
Profiles that typically benefit from this entity
- Solo consultants and freelancers seeking a low-tax European Union base.
- E-commerce and dropshipping business owners needing an EU corporate entity.
- Digital nomads and location-independent entrepreneurs looking for minimal compliance overhead.
- IT service providers, software development agencies, and marketing firms invoicing EU clients.
Who Should Avoid This?
Scenarios where another structure may be better
- High-growth startups planning to raise venture capital from top-tier US or UK investors.
- Founders who need a highly prestigious jurisdiction for complex enterprise B2B sales.
- Businesses that require complex multi-class share structures or employee stock option pools (ESOPs).
Advantages
- +Lowest corporate tax rate in the European Union at a flat 10% [1.1.3].
- +Very low dividend withholding tax of just 5% for non-residents.
- +Minimal share capital requirement of only 2 BGN (approximately 1 EUR).
- +100% foreign ownership is allowed with no requirement for a local resident director.
- +Can be incorporated entirely remotely via a notarized and apostilled Power of Attorney.
- +Significantly lower ongoing compliance, accounting, and operational costs compared to Western Europe.
Disadvantages
- -Remote formation requires notarizing and apostilling documents in your home country, which adds friction and courier delays [1.3.2].
- -Bureaucracy and government portals are exclusively in Bulgarian, making local legal and accounting support mandatory.
- -Opening a traditional local bank account remotely is difficult and often requires a physical visit; founders usually rely on EMIs like Wise or Revolut.
- -Not an ideal structure for raising venture capital, as international investors prefer UK Ltds or US C-Corps.
- -Social security contributions are relatively high (around 30% combined) if you hire locally or pay yourself a salary instead of taking dividends.
Formation Steps
Choose and reserve a unique company name with the Bulgarian Commercial Register.
Draft the Founding Act (Articles of Association) and standard management declarations.
Notarize and apostille the Power of Attorney and specimen signatures in your home country (if forming remotely).
Courier the original apostilled documents to your legal representative in Bulgaria.
Open a capital accumulation bank account and deposit the minimum share capital of 2 BGN (1 EUR).
Submit the incorporation documents and pay the state filing fees to the Bulgarian Registry Agency.
Obtain the Unified Identification Code (UIC/EIK) upon successful registration (usually within 3-7 days).
Register for VAT (mandatory if turnover exceeds 100,000 BGN or for intra-EU B2B services) and open an operational corporate bank account.
Cost Breakdown
Detailed breakdown of formation and ongoing costs
| Item | Type | Amount |
|---|---|---|
| State filing fee | One-time | $60 |
| Notary, translation, and apostille fees | One-time | $250 |
| Legal/Agency formation fee | One-time | $350 |
| Registered office address | Annual | $200 |
| Accounting and tax compliance | Annual | $1,200 |
| First year total | $2,060 | |
| Annual ongoing | $1,400 | |
Real-World Examples
Typical use cases for this entity type
- A German IT consultant sets up an EOOD to invoice EU clients, legally reducing their effective tax rate from over 40% in Germany to just 15% (10% CIT + 5% dividend tax) in Bulgaria.
- A digital nomad running an Amazon FBA business uses a Bulgarian EOOD to gain seamless access to the EU market while keeping annual accounting and compliance costs under 1,500 EUR.
- A UK-based marketing agency opens a Bulgarian EOOD subsidiary to maintain frictionless B2B operations and VAT compliance within the European Union post-Brexit.
Common Mistakes
Pitfalls to avoid during setup and operations
- Failing to properly apostille the Power of Attorney and specimen signatures, causing immediate rejection at the registry.
- Not registering for VAT (VIES) before providing B2B services to other EU businesses, leading to compliance penalties.
- Mixing personal and business expenses, which complicates Bulgaria's strict local accounting and documentation rules.
- Assuming local traditional bank accounts can be easily opened remotely without a physical visit or extensive KYC.
- Missing the annual financial statement filing deadlines (March 31 / June 30), which results in significant fines.
Compare with Other Countries
| Country / Type | Tax | Formation | Annual |
|---|---|---|---|
| 🇧🇬 Single-Member Limited Liability Company (EOOD)(EOOD) | 10.0% | $30 | $16 |
FAQ
Can I open a Bulgarian EOOD remotely?
Yes. You can form an EOOD entirely remotely by granting a Power of Attorney to a Bulgarian lawyer. The PoA and your specimen signature must be notarized and apostilled in your home country [1.3.2].
What is the minimum share capital for an EOOD?
The statutory minimum share capital is just 2 BGN, which is approximately 1 EUR.
Do I need a local resident director?
No. A Bulgarian EOOD can be 100% foreign-owned, and the director can be a non-resident of any nationality.
How much is the corporate tax in Bulgaria?
Bulgaria has a flat corporate income tax rate of 10%, which is one of the lowest in the European Union.
How are dividends taxed for non-residents?
Dividends distributed to non-resident individuals are subject to a 5% withholding tax, though this may be reduced by applicable double taxation treaties.
Do I need to visit Bulgaria to open a bank account?
Opening an account with a traditional Bulgarian high-street bank usually requires a physical visit. However, most foreign founders use Electronic Money Institutions (EMIs) like Wise, Revolut, or Payoneer, which can be opened entirely online.
How long does it take to register the company?
Once the documents are submitted to the Commercial Register, processing takes 2-3 business days. However, if forming remotely, the entire process takes 2-3 weeks due to the time needed to notarize, apostille, and courier documents.
Is VAT registration mandatory?
VAT registration is not automatically required upon incorporation. It becomes mandatory if your taxable turnover exceeds 100,000 BGN (approx. 51,130 EUR) in 12 consecutive months, or if you provide B2B services to clients in other EU countries.
Detailed Tax Rates
Corporate Income Tax
| From | To | Rate |
|---|
Bulgaria applies a flat 10% corporate income tax rate, one of the lowest in the EU. However, large multinational enterprises in scope of the Pillar Two rules are subject to a 15% global minimum tax.
Personal Income Tax (Top rate: 10.0%)
| From | To | Rate |
|---|---|---|
| $0 | No limit | 10.0% |
Personal income is taxed at a flat rate of 10%. There are no progressive tax brackets, making it highly attractive for high-income earners.
Capital Gains Tax
10.0%
Capital gains are generally taxed at the standard 10% flat rate. However, gains from the disposal of shares traded on regulated European stock exchanges are often exempt.
VAT / GST
20.0%
Registration Threshold: EUR51,130
Foreign providers of digital services to Bulgarian consumers must charge 20% VAT, which can be reported through the EU One-Stop Shop (OSS) scheme.
Withholding Tax
Dividends distributed to non-residents are subject to a 5% withholding tax, while interest and royalties face a 10% rate. These can be reduced to 0% under EU directives or applicable double tax treaties.
Payroll & Social Security
Employers contribute between 18.92% and 19.62%, while employees pay 13.78%. Contributions are capped at a maximum monthly insurable income of EUR 2,111.64 as of 2026.
Other Taxes
Real Estate Tax
Annual property tax ranges from 0.01% to 0.45% of the assessed value, determined by the local municipality.
Transfer Tax
A local tax of 0.1% to 3% is levied on the sale or transfer of real estate and motor vehicles.
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Changelog
Data updates and changes on this page
Verified 2026 corporate tax rates, minimum capital requirements, and remote formation procedures for Bulgarian EOOD.
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