Why Start a Business in Bulgaria

Every year more founders from Western Europe and further away choose Bulgaria for their company. Most of them come for the tax. But the ones who stay usually stay for more than that. In this page we explain the main reasons to start a business in Bulgaria, and also the things that are good to know before, so you can see if it fits your plans.

10% corporate tax, the lowest in the EU

Bulgaria has a flat 10% corporate income tax on profit. There are no higher rates for bigger profits and no local business tax on top. When you take profit out of the company as a dividend, there is 5% dividend tax. So in total you pay around 15% on the profit you take out.
For individuals as well, the income tax is a flat 10%. And social contributions are capped at a maximum monthly amount, so above a certain salary you don't pay more.
For many of our clients from Germany, Austria, the Netherlands or the UK this is a very big difference compared to what they pay at home.

A full EU member, with the euro since 2026

Bulgaria is in the European Union since 2007, fully in Schengen since 2025, and uses the euro since 1 January 2026. For your business this means:
You can sell to clients in all EU countries under the same EU rules.
Your company capital, bank accounts, invoices and reporting are all in euro.
No currency risk when you work with clients in the eurozone.
A Bulgarian company is a normal EU company, not an offshore. Clients and partners in other EU countries see it like a company from any other member state.

Lower costs to start and run

Starting a company here is cheap. The minimum capital for an EOOD or OOD is only 1 euro, and the registration usually takes a few business days once the documents are ready. The monthly costs are also lower than in Western Europe, for accounting, office space, and salaries if you hire people.
Sofia in particular has a big pool of IT people, accountants and people who speak English and other languages, which is why many international companies already have teams here.

Easy to set up as a foreigner

You don't need to be a Bulgarian citizen or live in Bulgaria to own or manage a company here. A foreign person or a foreign company can be the 100% owner. Much of the process can be done with a power of attorney, and many founders come only once for a few days to sign documents and meet the bank.
If you also want to move here, it is quite easy for EU citizens. For people from outside the EU there are residence permit options for business owners, and a digital nomad visa for remote workers.

A good place to live, not only to register

This is something people don't expect. The cost of living is relatively low, Sofia is a modern city with mountains 30 minutes away, and the Black Sea coast is a few hours by car. The time zone is one hour ahead of Central Europe, so working with clients in Europe is easy, and there are direct flights to most European capitals.

What you should know before you decide

We prefer to be honest, because it saves time for everybody.
The low tax in Bulgaria doesn't automatically mean you pay less tax at the end. If you keep living in another country, that country may still want to tax you or the company, depending on where you live and where the company is really managed from. Check this with a tax advisor in your home country before you start.
Opening a business bank account takes preparation. Banks check new companies carefully, and they decide by themselves.
The administration is in Bulgarian, and some things still need paper, signatures and stamps. This is exactly the part where local help makes things much easier.
None of these are reasons not to come. They are things to plan for.

Is Bulgaria right for you?

Bulgaria usually works very well for freelancers and consultants, IT and online businesses, agencies, e-commerce, and founders who want to move to a lower cost country and keep working with clients across Europe.
If you want to see how the process looks, read our overview of starting a company in Bulgaria. Or write us, tell us a bit about your business and where you live, and we will tell you honestly if Bulgaria makes sense in your case.