Can a non-resident own a Bulgarian company?

Yes, with no restriction. Practical banking is easier with a Bulgarian-resident manager, and we usually structure it that way.

What is the total effective tax on profits taken out?

10% corporate plus 5% dividend withholding gives roughly 14.5% total, before any treaty or EU directive relief at the shareholder level.

Is Bulgaria adopting the euro?

Bulgaria's lev has been pegged to the euro since inception and the country has been progressing through the euro-adoption process; the peg means currency risk is already minimal.

Jurisdiction · Europe

Bulgaria

The EU's lowest flat corporate rate at 10%, with real operating costs to match.

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Overview

Bulgaria charges 10% on corporate profits and 5% on dividends — the lowest combination in the European Union — with full EU membership, euro-pegged currency and salary costs a fraction of Western Europe. For businesses that need EU staff rather than an EU letterbox, the arithmetic is compelling.

The friction is administrative rather than fiscal. Bulgarian bureaucracy is slow, banking onboarding for non-resident owners takes patience, and quality local accounting is essential. Structures that budget for that do well here.

Typical use-cases

Where Bulgaria fits

EU operating companies
Software and BPO
Holding structures

Banking

Banking landscape

UniCredit Bulbank, DSK Bank and Postbank serve corporate clients. Non-resident-owned companies face extended review; a Bulgarian-resident manager materially improves the outcome. SEPA access is standard and EU payment institutions provide a reliable secondary rail.

Tax

Tax & reporting

10% flat corporate income tax and 10% flat personal income tax. 5% withholding on dividends, reduced or eliminated under the EU Parent-Subsidiary Directive. VAT is 20% with EU-wide registration. Social contributions are capped, which materially reduces employment cost at higher salaries.

Substance

Substance & register visibility

Bulgaria applies standard EU transparency: company ownership, managers and financial statements are publicly filed with the Commercial Register, and UBO data is registered under the AML directive. Tax residency follows place of management, so a Bulgarian company managed abroad may be taxed abroad.

Decision

When to pick this jurisdiction

Pick Bulgaria when you want a genuine EU operating company with employees at low cost — software development, BPO, logistics and e-commerce fulfilment are the common cases.

The director's view

Written up as a comparative shortlist.

Every Bulgaria recommendation is delivered as a comparative memorandum — substance defensibility, banking access, treaty coverage, register visibility, cost to maintain and reputational risk — so the client can see the trade-offs before committing.

Next step

Considering Bulgaria? Get a written comparison first.

Answer six questions and a director will come back with a shortlist, indicative costs and banking route.

Scope a structure here Compare jurisdictions

Frequently asked

Questions we hear on every Bulgaria intake.

Can a non-resident own a Bulgarian company?: Yes, with no restriction. Practical banking is easier with a Bulgarian-resident manager, and we usually structure it that way.
What is the total effective tax on profits taken out?: 10% corporate plus 5% dividend withholding gives roughly 14.5% total, before any treaty or EU directive relief at the shareholder level.
Is Bulgaria adopting the euro?: Bulgaria's lev has been pegged to the euro since inception and the country has been progressing through the euro-adoption process; the peg means currency risk is already minimal.

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