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Business Permits & Incorporation for Foreigners in Bansko

Good to know

Good to Know

  • There is no local-partner, local-shareholder, or citizenship requirement to incorporate in Bulgaria — foreigners (EU and non-EU) can own 100% of an EOOD or OOD and act as sole director.
  • Bulgaria switched from the Bulgarian lev (BGN) to the euro on 1 January 2026, and existing companies' share capital was automatically converted to EUR shortly after — expect some older blog guides to still quote figures in BGN.
  • Owning a Bulgarian company does not by itself grant a residence permit; non-EU founders wanting to live in Bulgaria via their business typically need to separately apply for a residence permit tied to commercial activity, which has its own document and income requirements.
  • Because registration is a national, centralized digital process, there's no advantage to 'incorporating in Bansko' specifically — your registered office address can be in Bansko or anywhere else in Bulgaria, and most nomads just use a virtual/registered-address service.
  • Budget extra time if your home-country documents need an apostille or consular legalization plus a sworn Bulgarian translation — this step, not the Registry Agency review itself, is usually the biggest bottleneck for remote/foreign founders.
  • Bulgaria's combination of 10% corporate tax, 10% personal income tax, and 5% dividend withholding tax is one of the most uniform and lowest-tax setups in the EU, which is a major reason many remote workers and small companies choose to base themselves here.
  • There is no dedicated 'freelance visa' or 'digital nomad visa' in Bulgaria — foreign freelancers establish legal status either through EU free-movement rules (EU/EEA citizens) or a Type D visa plus residence permit and freelance work permit (non-EU citizens).
  • An EOOD (single-owner limited company) can be opened with as little as €1 in minimum capital and fully remotely via power of attorney, which is why it's the default choice for most solo foreign founders rather than the sole-trader (ET) status.
  • Freelancers commonly insure themselves at the minimum social security base (around €175/month) rather than a higher base tied to actual earnings — this is legal and widely used, but it does mean lower state pension and sickness-benefit entitlements later.
  • Since Bulgaria's 2026 euro adoption, business bank accounts, share capital figures, and government fees are now denominated in euros by default rather than lev.
  • This is general national tax information, not personalized advice — get a same-country accountant to run numbers for your specific income level before choosing between freelance registration and forming a company, since the two structures' relative advantage shifts depending on income.

Corporate Tax

Citation Basis
Bulgarian corporate income tax remains at 10% in 2026 — the lowest headline rate in the European Union.
Double Tax Treaties
Bulgaria has signed double taxation treaties with more than 65 countries, which is relevant for foreign owners repatriating profit or avoiding double taxation on the same business income.
Combined Effective Burden
Combining the 10% corporate tax with the 5% dividend tax gives a combined effective rate typically cited as around 14–15% if all after-tax profit is distributed as dividends.

VAT

Standard Rate Percent
20
Registration Threshold
€51,130
Note
A 2026 EU-harmonised SME VAT regime lets businesses under this turnover threshold skip VAT registration (but also lose the right to deduct input VAT); registration becomes mandatory the day after the threshold is exceeded.

Headline Rate

Rate Percent
10
Note
Resident companies (EOOD, OOD, AD) are taxed on worldwide profits; non-resident entities only on Bulgarian-source profits (e.g. via a branch or permanent establishment).
Description
Flat Corporate Income Tax on company profits, one of the lowest headline rates in the EU.

Filing Obligations

  • Annual corporate income tax return (Form 1010A, under Art. 92 CITA), filed electronically via the NRA portal with a qualified electronic signature.
  • Filing deadline has recently moved: one detailed 2026 tax-law source states the deadline changed from 31 March to 30 June of the following year, while another general guide still cites a 30 June annual filing deadline — treat 30 June as the current expected deadline but confirm with an accountant given the recent change.
  • Quarterly advance corporate tax instalments (15 April, 15 July, 15 October, 15 December) are required once a threshold is reached; new companies in their first year of trading are exempt from advance payments since there is no prior-year figure to base them on.
  • Double-entry bookkeeping and annual financial statements must be filed with the Trade Register.
  • Companies must maintain a Bulgarian business bank account and a formal dividend declaration process to distribute profit.

Dividend Withholding Tax

Rate Percent
5
Description
Withholding tax applied when a company distributes profit as dividends to natural persons or foreign shareholders.

Structure Options For A Foreigner

Option 2 Sole Trader Et

Tax
Flat 10% personal income tax on business profits after allowable deductions and social security, with the same VAT threshold and social-security registration obligations as company owners.
Legal Nature
A registered natural-person trader with unlimited personal liability for business debts — distinct from the simpler freelance/free-profession status.
Bulgarian Name
Ednolichen Targovets (ET)
Practical Guidance
Most guides for foreign founders steer away from the ET structure toward either free-profession registration (for solo consultants) or an EOOD (for those wanting liability protection), since the ET adds registration and accounting overhead without limited liability.
Foreigner Eligibility
Generally requires the foreign national to already hold permanent residence in Bulgaria, which makes it a niche option for most foreign nomads.

Option 3 Limited Company EOOD OOD

Registration
Entirely digital process via the Trade Register; can be completed remotely from abroad using a notarised (and apostilled, if signed outside Bulgaria) power of attorney, typically within 3–10 working days depending mainly on bank account onboarding time.
Minimum Capital
€1.00
Foreigner Eligibility
No Bulgarian residency requirement for foreign founders — both individuals and foreign legal entities can own 100% of an EOOD/OOD.
When It Tends To Make Sense
Sources differ on the exact breakeven point versus the freelancer route: one detailed comparison puts the EOOD ahead up to roughly €68,000/year of income (after which the freelancer's capped social-security base starts to win out), while another puts the crossover closer to €50,000–100,000 depending on structure and whether a liberal-profession or patent regime is used. Treat any single number as approximate — get a comparison run for your actual income level before choosing.

Structures

OOD
Multi-owner limited liability company for two or more shareholders, e.g. a foreign investor plus a local partner.
EOOD
Single-owner limited liability company — the most common vehicle for solo foreign founders.

Ongoing Compliance

  • Double-entry bookkeeping and annual financial statements filed with the Trade Register.
  • Separate business bank account required by law.
  • Monthly social security declarations if the company pays any salaries.
  • Beneficial ownership (UBO) declaration and updates whenever ownership changes.

Option 1 Freelancer Free Profession

Who Its For
Consultants, software developers, designers, and other self-employed individuals working under their own name rather than through a company.
Legal Nature
A natural person performing work based on their own skills and expertise, for their own account, without being registered as a sole trader (ET) or a commercial company.
Annual Filing
Annual personal income tax return filed with the NRA (generally due between 10 January and 30 April of the following year for self-insured persons).
Bulgarian Name
svobodna profesiya (свободна професия)
Registration Steps
Register with the BULSTAT National Register at the Registry Agency within 7 calendar days of starting activity, then file the OKD-5 declaration with the NRA to register as a self-insured person.
Banking And Paperwork
A personal Bulgarian bank account is sufficient; freelancers operate as natural persons and do not need a separate corporate account, and there is no minimum capital requirement.

Income Tax

Effective Rate Percent
7.5
Mechanism
25% automatic statutory expense deduction applied to gross income, with the remaining 75% taxed at the flat 10% personal income tax rate, giving an effective rate of 7.5% on gross income.

Social Security

Combined Rate Percent Range
approximately 31.3%
Insurance Base
Self-chosen monthly base between a minimum and maximum, not calculated on full income.
Common Practice
Many freelancers with strong international earnings choose to insure at the minimum base, paying roughly €175/month in contributions, and settle any tax difference via the annual return — this is legal and common.
Maximum Monthly Base
€2,112
Minimum Monthly Base
€551

Eligibility For Foreigners

EU EEA Citizens
Can register once they have an address registration and a personal number (LNCH) from the Migration Directorate.
Non EU Citizens
Need a freelance work permit from the Bulgarian Employment Agency, a Type D long-stay visa, and a residence permit before registering; the initial residence permit is issued for 1 year and can be renewed.

Incorporation Process And Requirements

Scope Note
Company registration in Bulgaria is a single national procedure administered centrally by the Registry Agency (Agentsiya po Vpisvaniyata) under the Ministry of Justice — there is no separate Bansko-specific registration process. Nomads based in Bansko typically use a Sofia-based or remote accountant/lawyer to file, since the Commercial Register itself is a nationwide electronic system, not a local office process.
Capital Requirement Notes
Bulgaria adopted the euro on 1 January 2026, replacing the Bulgarian lev (BGN); the Registry Agency completed an automatic re-denomination of all registered companies' share capital from BGN to EUR shortly afterward. The former statutory minimum of BGN 2 for an EOOD/OOD converts to roughly EUR 1, and the former AD minimum of BGN 50,000 converts to roughly EUR 25,500–25,600. Some third-party formation-agency guides published in 2026 still quote figures in BGN out of habit; the current official currency for all fees and capital is EUR.

Timeline

Remote Total
Roughly 2–6 weeks end-to-end for non-resident founders registering via power of attorney, since document shipping, apostille/legalization, and remote bank account opening add the most time.
In Person Total
Roughly 4–10 working days end-to-end when the founder is present in Bulgaria with documents ready, since most of the time is spent on document prep, capital deposit, and bank onboarding rather than the registry review itself.
Remote Possible
Yes
Registry Processing
The Commercial Register itself typically approves a clean EOOD/OOD application within about 1–5 business days once complete documents are submitted.
Remote Note
The entire procedure can be completed remotely through a power of attorney; the main practical limitation is that some banks require the beneficial owner's personal presence to open the operating business account.

Tax Context

Corporate Income Tax Rate
10% flat (one of the lowest in the EU)
Dividend Withholding Tax
5%, potentially reduced under Bulgaria's double-taxation treaties
VAT Registration Threshold
Mandatory once taxable turnover reaches EUR 51,130 within a calendar year

Official Registry

URL
https://portal.registryagency.bg/en/
Name
Registry Agency (Agentsiya po Vpisvaniyata) — Commercial Register and Register of Non-Profit Legal Entities
Note
This is the official national portal for company name checks, e-filing, and public company lookups; it is a government body under the Ministry of Justice.

Required Documents

  • Notarized power of attorney (if registering remotely)
  • Founding Act (EOOD) or Articles of Association (OOD)
  • Incorporation resolution and manager's appointment/consent with specimen signature
  • Statutory declarations under the Commerce Act and Commercial Register Act
  • Bank certificate confirming the share-capital deposit
  • Certified Bulgarian translations of any foreign-language documents, apostilled or legalized as required
  • Proof of a Bulgarian registered address

Step By Step Process

  • Choose the legal form (EOOD/OOD/AD) and reserve/check a company name is unique via the Registry Agency's Commercial Register.
  • Draft core incorporation documents: Founding Act (for EOOD) or Articles of Association (for OOD), incorporation resolution, manager's consent and specimen signature, and required statutory declarations.
  • Secure a Bulgarian registered address (a physical office, co-working space, or a registered-address service is acceptable as long as official mail can be delivered).
  • Open a temporary capital (escrow) account at a Bulgarian bank in the company's prospective name and deposit the minimum share capital; the bank issues a certificate confirming the deposit, which is required for filing.
  • Notarize signatures and, for founders signing abroad, execute a notarized power of attorney so the process can be completed remotely.
  • For any foreign-issued documents (e.g., a corporate extract for a parent company or a personal ID), obtain an apostille (Hague Convention countries) or full consular legalization (non-Hague countries), and have them translated into Bulgarian by a sworn translator with notarized signature.
  • File the application (Form A4 for EOOD/OOD) with all supporting documents at the Commercial Register, either electronically or on paper.
  • The Registry Agency reviews the filing and, once approved, issues a Unified Identification Code (UIC/EIK) — this is the company's registration number.
  • Post-registration: convert the escrow account into a regular operating business account, register for VAT if applicable, and file the beneficial-ownership (UBO) declaration with the Registry Agency.

Common Legal Structures

  • EOOD
    Min Capital
    €1.00
    Description
    Single-member limited liability company. The most popular vehicle for solo foreign founders, freelancers and digital businesses because decision-making is simple and liability is capped at the capital contribution.
  • OOD
    Min Capital
    €1.00
    Description
    Multi-member limited liability company, used when there are two or more founders/partners; same conditions as an EOOD but requires at least two partners.
  • AD
    Min Capital
    €25,600
    Description
    Joint-stock company for larger operations, group structures, or those seeking outside/institutional investors; requires a multi-member board and stricter accounting and disclosure rules than an OOD/EOOD.
  • Branch of a foreign company
    Description
    Not a separate legal entity — the foreign parent company remains liable for all obligations. Useful for an already-established foreign business wanting a local presence without creating a Bulgarian subsidiary.

State Registration Fees

Paper Filing LLC
€56
Electronic Filing LLC
€28
Branch Of Foreign Company
€174

Foreign Ownership And Local Partner Rules

Details
Foreigners and companies may own 100% of a Bulgarian company, making the company incorporation process straightforward. There aren’t local shareholder requirements, but you typically require a local address and a Bulgarian bank account for share capital. Both EU and non-EU citizens can own 100% of a Bulgarian company and act as its sole director, with no Bulgarian residency requirement.
Local Partner Or Sponsor Required
No
Manager Nationality Note
Only a physical person may serve as manager of a limited liability company, but that person can be a foreigner — there are no restrictions on a foreign national being appointed as director.

Typical All In Cost With Professional Help

Low Estimate
€400
High Estimate
€800
Note
This range covers a lean EOOD/OOD launch including notary, translation, registered-address service, and basic filing help via a local lawyer or formation agent, on top of the bare state fee.

Currency Note

Bulgaria adopted the euro in 2026; figures below are quoted in EUR as the current local currency, with USD equivalents at the exchange rate looked up at generation time (~1 EUR = 1.14 USD).

Jurisdiction Scope Note

These are national Bulgarian tax and company-law rules administered by the National Revenue Agency (NRA) and the Commercial/Trade Register. Bansko has no separate municipal corporate tax regime — the same national framework applies whether the company or freelancer is based in Bansko, Sofia, or elsewhere in Bulgaria.

Practical Distinction Summary

The core trade-off for a foreigner in Bansko is: register as a freelancer (svobodna profesiya) for the lowest admin burden, no minimum capital, and an effective ~7.5% income tax rate, but with unlimited personal liability and social security that (if voluntarily minimised) still costs a fixed amount regardless of income; or form an EOOD for limited liability, the ability to reinvest profits without triggering dividend tax until distributed, and easier B2B invoicing, at the cost of bookkeeping, a business bank account, and the 5% dividend tax when profits are paid out.

AI-generated estimateData refreshed July 2026

Sources cited for this category

These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.

  1. 1.portal.registryagency.bg

More About Bansko

Data last updated July 2026 · Verify anything important.