BulgariaCompany formation, tax and banking

Why people choose Bulgaria

• 10% flat company tax, the EU's lowest
• 5% tax kept back on dividends, reduced or removed under the EU Parent-Subsidiary Directive
• Salaries a fraction of Western Europe's, with capped social security
• Full EU membership and a currency pegged to the euro
• Non-residents can own a Bulgarian company with no restriction

Where Bulgaria fits

• EU operating companies
• Software and BPO
• Holding structures

Where Bulgaria fits in a structure

Typical role · EU operating company with staff

The Bulgarian company is where the real work happens: software development, outsourced business services, logistics or e-commerce fulfilment, with staff on the ground. It pays 10% on profits, and 5% is kept back on dividends, roughly 14.5% in total before any treaty or EU relief. It relies on being managed in Bulgaria and on good local accountants to handle slow paperwork.

What it depends onA company is taxed where it's managed, so a Bulgarian company run from abroad may be taxed abroad, and banking is much easier with a manager who lives in Bulgaria.

A simplified picture to explain the idea, not a recommendation. General information, not tax or legal advice.

Opening a bank account

UniCredit Bulbank, DSK Bank and Postbank serve businesses. Companies owned by people living abroad get a longer review; having a manager who lives in Bulgaria makes a real difference. SEPA payments are standard, and EU payment firms are a reliable backup.

How tax works here

10% flat company tax and 10% flat personal income tax. 5% tax kept back on dividends, reduced or removed under the EU Parent-Subsidiary Directive. VAT is 20% with EU-wide registration. Social security contributions are capped, which makes higher salaries much cheaper to pay.

Real presence, and who can see the owners

Bulgaria follows normal EU openness: owners, managers and accounts are public on the Commercial Register, and the real owners are registered under anti-money-laundering rules. A company is taxed where it's managed, so a Bulgarian company run from abroad may be taxed abroad.

When to choose it

Choose Bulgaria when you want a genuine EU company with staff at low cost — software development, outsourced business services, logistics and e-commerce fulfilment are the usual cases.

You get a written comparison, not a sales pitch.

Every Bulgaria recommendation comes as a written comparison with the alternatives — whether the setup will stand up to scrutiny, how easy banking will be, which tax treaties apply, who can see the owners, what it costs to run each year and the risk to your reputation — so you can see the trade-offs before you commit.