Good to know
Good to Know
- Bulgaria adopted the euro on 1 January 2026, replacing the lev (BGN); all company capital, fees, and accounting are now denominated in euros, not lev.
- There is no requirement to have a Bulgarian co-owner, local sponsor, or nominee shareholder — 100% foreign ownership of an EOOD or OOD is standard and routine.
- The single biggest practical delay for foreign, non-resident founders is usually opening the mandatory capital/escrow bank account, not the Commercial Register filing itself — some banks require the beneficial owner's personal presence or run extended anti-money-laundering checks, and fees/requirements vary significantly by bank.
- The registered company address does not need to be a real office — a virtual office address is legally sufficient, and this can be based anywhere in Bulgaria, so a nomad living in Sunny Beach can register with an address there or use a cheaper virtual-office provider in nearby Burgas or Sofia.
- Owning a Bulgarian company can support a long-term residence permit application for commercial activity, but this requires meeting additional immigration-specific conditions beyond simply incorporating.
- Bulgaria's flat 10% corporate tax and 5% dividend withholding tax are national rules — they apply the same in Sunny Beach as in Sofia or anywhere else in the country; there's no special local business-tax angle to this resort town.
- As of 1 January 2026 Bulgaria uses the euro, not the lev, for all tax filings and statutory thresholds — double-check any older guide or invoice template still quoting BGN amounts, since some are now outdated.
- For a solo foreign founder without Bulgarian residency, forming an EOOD (single-owner limited liability company) is almost always more practical than trying to register as an ET sole trader, which effectively requires residency and offers no liability protection.
- New companies get a genuine first-year break: no advance corporate tax instalments are due until you have a prior year of results to base them on.
- VAT registration becomes mandatory once turnover crosses roughly EUR 51,130 in a calendar year, and after that VAT compliance shifts from an annual to a monthly filing rhythm — factor this into any bookkeeping plan before you approach the threshold.
- Opening a business bank account as a foreign, non-resident owner is often the slowest practical step in the whole process, due to enhanced KYC/AML checks by Bulgarian banks — plan for this to take longer than the company registration itself.
Filing Obligations
- Annual Return
- The annual corporate income tax return is filed electronically (mandatory qualified electronic signature) between 1 March and 30 June of the year following the tax year, via the NRA's online portal, together with an annual activity report.
- Record Keeping
- Companies must maintain statutory accounting records (now kept in euro) and, above a much higher turnover threshold (~BGN 16 million), formal transfer-pricing documentation for related-party transactions.
- Early Filing Discount
- BGN 1,000
Advance Payments
- Detail
- No advance payments are required if net sales revenue in the base year is up to roughly EUR 153,387; quarterly advance instalments apply between that figure and about EUR 1.53 million; monthly instalments apply above that. Newly incorporated companies are exempt from advance payments entirely in their first year of trading.
- Quarterly Band Upper
- €1,533,875
- No Advance Payments Threshold
- €153,387
Structure Comparison
Sole Trader Et
- Taxation
- ET profits are taxed under personal income tax rules rather than the 10% corporate rate, and the owner must also make mandatory social security contributions on declared income.
- Legal Nature
- Not a separate legal entity — the individual and the business are legally the same person under the Commerce Act, meaning the owner's personal assets are fully exposed to business debts (unlimited liability).
- Bulgarian Name
- Едноличен търговец (ET)
- Foreigner Access
- Registering as an ET generally requires a Bulgarian personal identification number, which in practice means permanent residence status; non-EU/EEA nationals face significant restrictions and third-country nationals typically need an existing residence permit first.
- Practical Verdict
- Workable for an EU/EEA citizen with Bulgarian permanent residency running a low-risk, single-person activity, but rarely the recommended route for a non-resident foreigner and offers no liability protection.
Branch Or Representative Office
- Detail
- An existing foreign company can instead register a branch (permitted to trade, but not a separate legal entity from the parent) or a representative office (market-entry/research only, cannot trade) — relevant mainly for established businesses expanding into Bulgaria rather than a new solo founder.
- Taxation
- A branch can create a Bulgarian permanent establishment, triggering Bulgarian corporate tax liability on locally-generated profit even though it isn't a separate legal person.
Limited Liability Company EOOD OOD
- Taxation
- Taxed at the flat 10% corporate rate described above, with the 5% dividend withholding tax applying only when profit is actually distributed to the owner.
- Legal Nature
- A separate legal entity that shields the owner's personal assets — liability is limited to the registered capital contribution.
- Bulgarian Name
- EOOD (single-owner) / OOD (two or more owners)
- Foreigner Access
- The Commercial Act provisions governing EOOD/OOD contain no citizenship or residency requirement — any natural or legal person, of any nationality, may found, own, or manage one, and the whole process can be completed remotely via a notarized power of attorney.
- Practical Verdict
- The standard, practical vehicle for a foreign digital nomad or remote-business owner in Bulgaria: full liability protection, minimal capital, no residency requirement, and the 10% corporate rate — though opening a Bulgarian business bank account as a foreign, non-resident founder can be the slowest and most friction-heavy step due to bank KYC/AML checks.
- Registration Speed
- Typically processed by the Registry Agency within 3–5 business days once documents and a paid-in capital escrow account are in place.
- Capital Requirement
- €1.00
Statutory minimum capital is nominal (around EUR 1, historically BGN 2); most founders deposit somewhat more for banking credibility.
Incorporation Process And Requirements
- Remote Incorporation
- A foreign founder does not need to travel to Bulgaria; the entire filing can be completed via a notarized (and, if needed, apostilled) Power of Attorney authorizing a Bulgarian lawyer or agent to sign documents, open the bank account, and file with the Commercial Register. The main practical limitation is that some banks still require the beneficial owner's personal presence or a video-KYC step to open the mandatory capital account.
- VAT Registration Threshold
- €51,130
VAT registration becomes mandatory once taxable turnover exceeds this amount within a calendar year.
- Local Partner Or Sponsor Requirement
- None. Bulgarian company law places no citizenship or residency requirement on founders, shareholders, or managers of an EOOD or OOD. A foreign individual or foreign company may own 100% of a Bulgarian company and act as its sole director; no Bulgarian co-owner, sponsor, or nominee shareholder is legally required.
- Jurisdiction Note
- Sunny Beach is a resort town within Nesebar municipality, Burgas Province. Company incorporation in Bulgaria is a national process handled centrally through the Commercial Register (Registry Agency) regardless of which city the company's registered address is in — there is no separate 'Sunny Beach' business registry. A registered company address can be set in Sunny Beach/Nesebar itself, or nomads often use a cheaper virtual-office address in nearby Burgas or in Sofia.
Steps
- 1. Check and reserve a unique company name in Cyrillic (a Latin transliteration can also be registered) via the Commercial Register portal.
- 2. Secure a registered Bulgarian business address (sedalishte) — a virtual office/registered-agent address is legally sufficient; a physical office is not required.
- 3. Draft the Founding Act (for EOOD) or Articles of Association / partnership agreement (for OOD), appoint a manager, and prepare the manager's notarized specimen signature and consent to manage.
- 4. Open a temporary capital/escrow account at a Bulgarian bank and deposit the share capital; the bank issues a deposit certificate needed for filing. This step is generally the slowest and most friction-prone part for foreign, non-resident founders due to bank anti-money-laundering checks.
- 5. If any founder or document originates abroad, have signatures notarized and apostilled (for Hague Convention countries) or consular-legalized (for non-Hague countries), and have all foreign-language documents translated into Bulgarian by a certified/sworn translator.
- 6. File Application Form A4 with the complete document set at the Commercial Register, either electronically (faster, cheaper) or on paper.
- 7. The Registry Agency reviews the filing and, if complete, registers the company and issues a Unified Identification Code (UIC/EIK).
- 8. Post-registration: convert the escrow account into an operating account, register with the National Revenue Agency (NRA) for tax purposes, register for VAT if required, and file the beneficial-ownership (UBO) declaration within the statutory deadline.
Timeline
- In Person With Documents Ready
- Roughly 3-7 business days from filing to receiving the Unified Identification Code (UIC), assuming clean paperwork and a bank account already open.
- Remote Non Resident Via Power Of Attorney
- Typically 2-6 weeks end to end, covering document preparation/apostille/translation abroad (1-2 weeks), Commercial Register processing (3-5 business days once filed), and foreign-founder bank account opening (which can itself take 1-4 weeks and is the most common bottleneck).
Typical Costs
- Notary Fees Domestic
- €20
Typical cost for notarizing the manager's specimen signature in Bulgaria; roughly EUR 10-30.
- State Registration Fee
- €28
Electronic filing fee at the Commercial Register; roughly double for paper filing.
- Notary And Apostille Abroad
- €100
If signing abroad: notarization (EUR 50-150) plus apostille (EUR 20-80), varying by country.
- Foreign Founder Bank KYC Fee
- €300
Banks charge enhanced due-diligence/KYC fees for opening a capital account for a foreign national or company, typically in the EUR 100-500 range.
- Minimum Share Capital EOOD OOD
- €1.00
Statutory legal minimum; most founders deposit a token amount only.
- Registered Address Virtual Office
- €100
Per year, typical for a compliant virtual office/registered-agent address; monthly options also exist (roughly EUR 10-40/month).
- All In Typical Total DIY Or Lawyer Assisted
- €800
Rough all-in total commonly cited by Bulgarian law/accounting firms for a straightforward EOOD/OOD registration, excluding ongoing accounting; figures across providers range roughly EUR 400-1,500 depending on whether a lawyer/agency is used and whether registration is done in person or remotely.
Official Links
- National Revenue Agency
- https://nra.bg
- Commercial Register Registry Agency
- https://portal.registryagency.bg
Common Entity Types
EOOD (Ednolichno Druzhestvo S Ogranichena Otgovornost)
- Minimum Capital
- €1.00
- Foreign Ownership
- 100% foreign ownership permitted; no local partner required.
- Description
- Single-member limited liability company. Most common structure for solo foreign founders (freelancers, consultants, digital businesses). One owner, one manager, who can be the same person.
OOD (Druzhestvo S Ogranichena Otgovornost)
- Minimum Capital
- €1.00
- Foreign Ownership
- 100% foreign ownership permitted across all partners.
- Description
- Multi-member limited liability company, identical rules to EOOD but requires two or more partners (can be two foreigners, or a foreigner plus a Bulgarian).
AD/EAD (Aktsionerno Druzhestvo)
- Minimum Capital
- €25,000
- Foreign Ownership
- Unrestricted; at least 25% of subscribed capital must be paid in before registration.
- Description
- Joint-stock company, used for larger ventures or those planning to raise outside investment; stricter governance (minimum three-member board for larger AD structures).
Branch of a Foreign Company
- Minimum Capital
- €0.00
- Foreign Ownership
- Available to any foreign company with an established parent entity.
- Description
- Not a separate legal entity — the foreign parent remains fully liable for the branch's obligations. No share capital required.
Registration Authority
- Name
- Registry Agency (Agentsia po vpisvaniyata) — Commercial Register
- Official Portal
- https://portal.registryagency.bg
- Notes
- Name availability can be checked for free on the Registry Agency's public portal before filing.
Post Registration Obligations
- Register with the National Revenue Agency (NRA) and obtain a tax number.
- Register for VAT if voluntary or once the turnover threshold is exceeded.
- File a beneficial-ownership (UBO) declaration with the Commercial Register.
- File annual financial statements with the Commercial Register by 30 June of the following year, and the annual corporate income tax return by the same date.
- If the foreign owner also acts as the paid manager and self-insures in Bulgaria, mandatory social security contributions apply.
VAT
- Reduced Rate Percent
- 9
- Standard Rate Percent
- 20
- Reduced Rate Applies To
- Certain supplies including accommodation services and books.
- SME Regime
- From 2026 Bulgaria introduced an EU-harmonised small-enterprise VAT regime letting qualifying small businesses under the threshold skip charging VAT, at the cost of losing the right to deduct input VAT on their own purchases.
- Registration Threshold
- €51,130
This EUR 51,130 threshold replaced the old BGN 100,000 figure as part of the 2026 VAT reform tied to euro adoption. A company must apply for VAT registration within days of exceeding it, and once registered, VAT compliance becomes a monthly (not annual) obligation.
Corporate Tax
- Rate Description
- Bulgaria applies a flat 10% corporate income tax (CIT) on company profits, unchanged since 2007 and among the lowest headline rates in the EU. There are no provincial or municipal corporate income taxes on top of this.
- Dividend Withholding Tax
- When a company distributes profit as dividends to individual shareholders, a separate 5% dividend withholding tax applies, giving a combined effective burden of roughly 15% for a founder who both earns profit and pays it out as dividends.
Currency Context
Bulgaria joined the eurozone on 1 January 2026. The euro (EUR) is now the official currency for all tax filings, accounting records and statutory thresholds, converted from the old lev at the fixed rate of 1 EUR = 1.95583 BGN.
Jurisdiction Scope
These are national Bulgarian tax and company-law rules administered by the National Revenue Agency (NRA) and the Registry Agency's Commercial Register — they apply identically in Sunny Beach as anywhere else in Bulgaria; there is no separate municipal business tax regime specific to Sunny Beach.
AI-generated estimateData refreshed July 2026
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