Quick answer — Bulgarian EOOD at a glance. A Bulgarian EOOD (single-member limited liability company) can be registered in about a week with a symbolic minimum share capital. Profits are taxed at a flat 10% corporate rate, and dividends face a separate withholding tax, 5% at the time of writing. Bulgaria joined the euro on 1 January 2026. A local registered address is required, and if you manage the EOOD from another country, that country may tax it.
Bulgaria offers the simplest low-tax formula in the EU: a 10% flat corporate tax, a 10% flat personal income tax, a low tax on dividends and a cheap, quick company registration. Since 1 January 2026 it also uses the euro, removing currency risk for founders who invoice in euros.
For location-independent founders, the EOOD is often the alternative to Estonia's OÜ. Where Estonia rewards reinvestment by taxing only distributed profits, Bulgaria rewards founders who take profits out every year: about 14.5% in combined company and dividend tax at current rates, before any tax in your country of residence.
An EOOD run entirely from a high-tax EU country is fragile: that country can claim the company is managed there or has a permanent establishment there. It is also not designed for local employees or settled expats.
Comparing EU jurisdictions? See our guide to the best EU country to start a company.
If your company will stay in the EU and your priority is the lowest headline rate, compare Hungary's 9% corporate tax Kft. If you have small turnover and at least one employee, the Romanian micro-enterprise regime may also be worth a look.
A Bulgarian company is tax resident in Bulgaria because it is registered there. The risk for a location-independent founder is not Bulgaria, but the country where they actually live and work.
If you live most of the year in one country and run the EOOD from there, that country may say the company is managed there or that your home office is a permanent establishment of the EOOD. The profits linked to that activity could then be taxed at the local corporate rate. The risk is highest for founders who stay in one high-tax EU country, sign contracts there and serve local clients.
Bulgaria considers you tax resident if you spend more than 183 days there in any 12-month period, or if your centre of vital interests is in Bulgaria. Bulgarian residents pay a flat 10% on most income, which makes moving to Bulgaria an option for founders who want to combine a low company rate with a low personal rate.
As an EU member, Bulgaria applies CFC rules, and so does every other EU country. A 10% company is not usually treated as a zero-tax company, but some countries compare it to their own rate and may apply CFC rules to passive income.
A Bulgarian EOOD is one of the cheapest EU companies to set up and run: typically €500–1,500 to register and €1,000–3,000 a year to maintain.
Amounts are indicative; confirm current state fees with the Bulgarian Registry Agency.
That is about 14.5% in Bulgaria at current rates. Your country of residence may then tax the dividend under its own rules, usually with credit for the Bulgarian withholding tax under a tax treaty.
Plan for about one to two weeks to register the EOOD if documents are prepared from abroad, and a few more weeks for banking.
Bulgarian banks open accounts for foreign-owned companies but usually want to meet the manager in person or by video and to see a clear business model, contracts or invoices, and proof of source of funds. EU payment institutions are a common complement for international payments and multi-currency accounts.
The Bulgaria Business Bank Comparison Guide compares the main banks and payment institutions for EOODs owned by non-residents — get it when you start your Bulgarian setup with Heavnn.
Bulgaria applies a flat 10% corporate income tax on taxable profits, one of the lowest rates in the EU.
Yes. Non-residents and non-EU citizens can own 100% of an EOOD and act as its manager. The company needs a registered address in Bulgaria, and documents signed abroad usually need notarisation, an apostille and translation.
Dividends paid to individuals and to non-EU companies are subject to Bulgarian withholding tax, 5% at the time of writing. Dividends to EU parent companies are generally exempt. Your country of residence may also tax the dividend.
Once documents are ready, the Commercial Register usually completes registration within a few working days. Preparing notarised and translated documents from abroad can add one or two weeks.
Yes. Bulgaria adopted the euro on 1 January 2026. Share capital, fees and accounting are now denominated in euros.
Bulgaria's 10% is only 10% if the company stays Bulgarian for tax purposes. Heavnn checks your residence and management position before you register.
Start your Bulgarian EOOD with Heavnn →
This guide is general information, not tax or legal advice. Rates and fees are indicative as of October 2026.
