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Business Permits & Incorporation for Foreigners in Sofia

Good to know

Good to Know

  • Bulgaria switched fully to the euro on 1 February 2026, so all incorporation fees, minimum capital, and share amounts you'll see quoted are now in EUR rather than the old Bulgarian lev.
  • You do not need a local partner, local director, or Bulgarian residency to own or run a Bulgarian EOOD or OOD — 100% foreign ownership is standard.
  • The registered company address does not have to be a real office; a virtual office/registered agent address is normal and accepted by the Registry Agency.
  • Opening the mandatory capital-deposit bank account is usually the slowest and most unpredictable part of the process for non-residents — some banks require your physical presence and can take longer than the actual registry filing.
  • A newer entity type, the Variable Capital Company (VCC/DPC), was introduced in December 2024 specifically to let founders skip the bank-account/capital-deposit step entirely — worth considering if banking friction is your main concern.
  • Bulgaria switched its official currency from the lev (BGN) to the euro (EUR) on 1 January 2026, so any older guide quoting minimum capital or fees in BGN is now technically outdated — the figures have been converted at the fixed rate of 1 EUR = 1.95583 BGN.
  • The 10% flat corporate tax rate is real, but factor in the 5% dividend withholding tax when you actually take profit out personally — the effective combined rate is closer to 15% once you distribute.
  • A foreign-owned EOOD can be opened with as little as EUR 1 in share capital and 100% foreign ownership with no residency requirement for the owner or manager, which is why it's the go-to structure for nomads who want a proper company rather than freelance invoicing.
  • If you don't yet hold Bulgarian residence, registering as an ЕТ (sole trader) is generally not available to you since it legally requires a permanent residence address in Bulgaria — most nomads without residence either freelance as a self-insured individual or set up an EOOD instead.
  • Annual bookkeeping/accounting support is a real recurring cost for a company (roughly EUR 1,300–2,400/year for a small EOOD) — budget for it rather than assuming the low 10% tax rate is the whole cost story.

Corporate Tax

Headline Rate
Flat 10% Corporate Income Tax (CIT) on taxable profit, one of the lowest headline rates in the EU, unchanged since 2007. There are no provincial or local surtaxes on top of it.
Loss Carryforward
Tax losses may be carried forward for 5 consecutive tax years.
Who It Applies To
Bulgarian-resident companies (EOOD, OOD, AD/JSC, etc.) are taxed on worldwide profit; non-resident companies/branches are taxed only on Bulgarian-source profit or profit attributable to a Bulgarian permanent establishment.
Large Group Top Up
Multinational groups with consolidated revenue above EUR 750 million may face an effective 15% rate on Bulgarian profits under the OECD Pillar Two / QDMTT rules; this does not affect ordinary small or mid-sized foreign-owned companies.
No Group Consolidation
Bulgaria has no group tax-consolidation regime — each company in a corporate group, even 100%-owned subsidiaries, files and is taxed separately.
Tax On Certain Expenses
A separate 10% 'tax on expenses' applies to specific items such as entertainment/business-hospitality costs, benefits in kind above certain caps, and personal use of company assets by staff, in addition to standard 10% CIT on profit.

Dividend Withholding Tax

Rate
5% withholding tax on dividends distributed to individual shareholders (reduced to 0% for qualifying EU corporate shareholders under the participation exemption).
Combined Effective Burden On Individual Owner
Approximately 15% all-in if profit is taxed at 10% CIT and then distributed as a dividend to an individual owner (10% CIT + 5% dividend WHT).

Filing Obligations Company

Annual Return
Annual CIT return (Form 1010A, under Art. 92 of the Corporate Income Tax Act) covering the calendar year (1 Jan–31 Dec — non-calendar fiscal years are not permitted) is filed between 1 March and 30 June of the following year, exclusively electronically via the National Revenue Agency (NRA) portal using a qualified electronic signature.
Annual Financial Statements
Annual financial statements must also be filed with the Commercial Register by 30 June of the following year.

Advance Payments

Rule
Whether advance CIT payments are owed, and how often, depends on net sales revenue two years prior: below roughly EUR 153,387 — no advance payments required; between about EUR 153,387 and EUR 1,533,876 — quarterly advance payments; above about EUR 1,533,876 — monthly advance payments.
New Company Exemption
Newly incorporated companies are exempt from advance payments in their first year of operation.

Thresholds

No Advance Payment Below
€153,387
Quarterly Threshold Up To
€1,533,876

VAT Registration

Mandatory Threshold
€51,130
Note
VAT registration becomes mandatory once annual taxable turnover exceeds this threshold; below it, registration is optional. Standard VAT rate is 20%, with a 9% reduced rate for hotels and certain other categories.

Early Filing Discount

Cap
€511
Detail
Filing and paying in full by 31 March instead of the 30 June deadline earns a 5% discount on the tax due, capped at

Structure Options For A Foreigner

  • None required.
    Summary
    Many foreign remote workers in Sofia simply invoice clients as a self-insured individual under a civil contract, registering with the tax authority (NRA) and receiving a BULSTAT number, without setting up a full commercial entity. Income is taxed under personal income tax rules (flat 10%) with a standard 25% notional expense deduction commonly available for freelance/'free profession' income, reducing the taxable base without needing receipts for that portion.
    Best For
    Solo consultants/freelancers with modest, low-risk income who want the simplest possible setup.
    Liability
    Unlimited — there is no separate legal entity; the individual is personally liable.
    Structure
    Freelancer / self-employed civil-contract (no formal trader registration)
  • Unlimited personal liability.
    Summary
    A formal registration in the Commercial Register as an individual trader. It does not create a separate legal entity — the trader's personal and business assets and liabilities are merged, and the trader is liable for business debts with all personal assets. Registration is inexpensive, with a small state fee.
    Structure
    Sole proprietor / ЕТ (Едноличен търговец)
    Minimum Capital
    None required.
    Residency Requirement
    Under the Commercial Code, an ET must be a natural person capable of acting who has a permanent place of residence in Bulgaria — nationality does not matter, but residence in Bulgaria does. This effectively means a foreigner without Bulgarian residence typically cannot register as an ET, making it a less practical route for a nomad who is not yet a resident.
    VAT Registration Threshold
    €51,130
    Mandatory Social Security Minimum Monthly Base 2025 Figure
    €551

    Registration Cost

    In Person State Fee
    €15
    Electronic State Fee
    €8.00
  • Limited to the amount of the owner's capital contribution.
    Summary
    The default structure for foreign founders. Any natural or legal person of any nationality can own 100% of an EOOD/OOD, with no Bulgarian citizenship or residency requirement for owners or the appointed manager/director. It is a separate legal entity subject to the 10% CIT described above.
    Timeline
    Typically 3–5 business days for Commercial Register approval once documents are filed correctly, though bank account opening can extend the overall timeline to 2–3 weeks.
    Structure
    Limited liability company — EOOD (single-owner) or OOD (multi-owner)
    Minimum Capital
    €1.00
    Remote Incorporation
    Can be completed entirely remotely via a notarized (and apostilled/legalized) Power of Attorney to a local lawyer, though some banks require the beneficial owner's personal presence to open the account.
    Registration State Fee Electronic
    €28

    Registered Address

    Requirement
    A Bulgarian registered office address is required; a basic virtual/registered-address service is commonly used.

    Typical Annual Cost Range

    Low
    €120
    High
    €240

    Typical Full Setup Cost Range

    Low
    €400
    High
    €1,700
    Note
    Range covers notarization, translations, filing fees and a service provider handling the process; foreign owners tend to land toward the higher end due to apostille/legalization and translation requirements.

    Bank Account Opening Fee Range

    Low
    €20
    High
    €100

    Typical Annual Bookkeeping And Compliance Cost Range

    Low
    €1,300
    High
    €2,400
    Note
    Covers monthly bookkeeping, VAT returns if registered, and the annual corporate tax return; larger or audited companies pay more.

Typical Cost

State Registration Fee Electronic
€28
Note
Figures vary significantly by law firm/agent and by which bank a foreign founder uses; DIY registration with only the statutory fees and minimal notary work can come in well under EUR 500, while a fully-managed remote incorporation package (common for non-resident founders) typically lands in the EUR 800-1,700 range.

Notary Fees Signed In Bulgaria

Currency Local
EUR
Amount USD Range
12-35
Amount Local Range
10-30

Virtual Registered Office Per Year

Currency Local
EUR
Amount USD Range
58-174
Amount Local Range
50-150

All In Professional Formation Package

Currency Local
EUR
Amount USD Range
928-1972
Amount Local Range
800-1700

Notary And Apostille If Signed Abroad

Currency Local
EUR
Amount USD Range
81-267
Amount Local Range
70-230

Bank KYC Capital Account Foreign Founder

Currency Local
EUR
Amount USD Range
116-580
Amount Local Range
100-500

Common Entity Types

  • EOOD (Single-member LLC)
    Notes
    The most popular vehicle for foreign solo founders, consultants and digital businesses. One owner, one director, full control, limited liability.
  • OOD (Multi-member LLC)
    Notes
    Identical legal framework to EOOD but with two or more shareholders; used when there is a co-founder or investor partner.
  • AD (Joint-stock Company)
    Notes
    For larger or investor-heavy ventures; requires a three-member board and much higher minimum capital.
  • VCC / DPC (Variable Capital Company)
    Notes
    A newer structure (available since December 2024) aimed at startups: no fixed minimum capital and no pre-registration bank account/capital deposit required, which removes the biggest practical bottleneck for foreign founders (bank KYC).

Currency Context

Bulgaria adopted the euro as its official currency on 1 January 2026 at the fixed conversion rate of 1 EUR = 1.95583 BGN. All statutory amounts below are now denominated in EUR; older sources quoting BGN figures have been converted.

Practical Freelancer Vs Company Distinction

For a foreigner, the core trade-off is: a freelance civil-contract setup or ET is cheap and fast but carries unlimited personal liability and (for the ET specifically) generally requires Bulgarian residence; an EOOD is a separate legal entity with limited liability, no residency requirement for the foreign owner, and the same flat 10% corporate tax, but it comes with mandatory bookkeeping, annual accounts, and higher ongoing compliance costs than simply invoicing as an individual.

Official Links

Commercial Register Registry Agency
https://portal.registryagency.bg
Ministry Of Economy Business Handbook
https://www.mi.government.bg/en/business-handbook-for-sme/choice-of-legal-form-registration-documents-and-procedure/
National Revenue Agency Tax Registration
https://nap.bg

Minimum Capital

EOOD OOD
€1.00
AD Joint Stock
€25,000
Note
Statutory minimum for EOOD/OOD is symbolic (the old BGN 2 figure converts to about EUR 1 at the fixed lev-euro rate). In practice many founders deposit more than the legal minimum to look credible to banks and business partners, though this is not a legal requirement.

Currency Context

Bulgaria adopted the euro as its sole legal currency on 1 February 2026 (dual circulation with the lev ran through January 2026). All figures below are quoted in EUR, the country's current local currency, rather than the former lev (BGN).

Realistic Timeline

Additional Time For Regulated Activities
add roughly another week or more if the business activity requires a specific license
If Present In Bulgaria With Documents Ready
3-5 business days for the Commercial Register to approve the filing
Remote Incorporation With Apostilled Documents
2-4 weeks, largely driven by document legalization/translation and bank account opening rather than the registry step itself
Note
The single biggest real-world bottleneck for foreign founders is not the Registry Agency (which typically turns filings around in days) but opening the mandatory Bulgarian bank capital-collection account, since banks apply enhanced due diligence to foreign clients and sometimes require the account holder's personal presence.

Incorporation Steps

Incorporation Steps

  • 1. Choose the legal form (EOOD for a sole founder, OOD for two or more, AD for larger investor-backed ventures, or the newer VCC for capital-light startups).
  • 2. Check and reserve a unique company name through the Bulgarian Commercial Register's free online name-availability search.
  • 3. Draft the founding act (EOOD) or partnership agreement/Articles of Association (OOD), the manager's consent, and specimen signature; these must be in Bulgarian.
  • 4. Notarize the manager's signature specimen — either at a Bulgarian notary in person, or before a notary in the founder's home country followed by an apostille (or full consular legalization for non-Hague countries), plus a certified Bulgarian translation.
  • 5. Secure a registered office address in Bulgaria (a virtual office/registered agent address is widely used and legally sufficient).
  • 6. Open a temporary capital-collection (escrow) bank account at a Bulgarian bank and deposit the share capital (for EOOD/OOD, as little as EUR 1, though banks often charge separate KYC/account-opening fees, especially for foreign clients). The VCC structure skips this step entirely.
  • 7. File the complete package (Application Form A4, founding documents, bank certificate, ID copies, proof of address) with the Commercial Register, administered by the Registry Agency — either electronically (faster, requires a qualified e-signature) or on paper.
  • 8. The Registry Agency reviews and, if in order, registers the company and issues a Unified Identification Code (UIC/Bulstat), at which point the company gains full legal capacity to sign contracts, hire staff, and open an operating bank account.
  • 9. Post-registration: register with the National Revenue Agency (NRA) for tax purposes, register for VAT if turnover thresholds are met or voluntarily for EU cross-border trade, and file beneficial-owner (UBO) details in the UBO register.

Local Partner Or Sponsor Mandate

None. Foreign individuals and foreign legal entities may own 100% of a Bulgarian company with no local shareholder, local director, or residency requirement for the owner or manager. The relevant provisions of the Commercial Act governing OOD/EOOD companies contain no citizenship or residency requirement, and any natural or legal person may be a founder, partner, or manager of a Bulgarian company. If the appointed manager is not resident in Bulgaria, a local contact person for official correspondence must be appointed, and a company still needs a registered Bulgarian office address (a virtual office is legally acceptable). The only structure that does require Bulgarian residence is the unincorporated sole trader (ET) option, which most foreign founders avoid anyway because it carries unlimited personal liability.

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.mi.government.bg
  2. 2.portal.registryagency.bg

More About Sofia

Data last updated July 2026 · Verify anything important.