Quick Overview: Typical Annual Costs (2025)
| Company Type | Dormant (EUR/year) | Active Solo (EUR/year) | Active with Staff (EUR/year) |
|---|---|---|---|
| EOOD | €400–€700 | €850–€1,500 | €1,800–€3,500+ |
| OOD | €500–€800 | €1,000–€1,800 | €2,000–€4,000+ |
| AD | Rarely dormant | €2,000+ | €4,000–€10,000+ |
| Branch | €700–€1,200 | €1,200–€2,500 | €2,500–€5,000+ |
These estimates include mandatory and typical costs, such as accounting, tax filings, virtual address, basic legal support, and payroll-related services.
What Are the Real Costs Made Of?
Let’s break down the true ongoing expenses into major categories. We’ll also show practical examples for common use cases.
Accounting & Tax Filing
| Cost Item | Monthly (EUR) | Annual (EUR) | Notes |
|---|---|---|---|
| Basic accounting package | €30–€70 | €400–€800 | Varies by invoices, activity, VAT |
| Annual corporate tax return | — | Included | Required by March 31 |
| Annual financial report (NSI) | — | €50–€100 | National Statistics Institute |
| VAT declaration (if active) | €20–€50 | €240–€600 | Only if VAT-registered |
| Payroll reporting (if any) | €20–€50 | €240–€600 | Per employee |
A simple, non-VAT EOOD with 1–10 invoices per month typically incurs accounting fees of €600–€800 per year.
Legal Address / Virtual Office
Foreign-owned companies must maintain a registered address in Bulgaria.
| Service | Typical Fee (EUR/year) | Notes |
|---|---|---|
| Virtual office (address) | €100–€200 | Contract used for registration |
| Mail forwarding | €30–€60 (optional) | Useful if you live abroad |
| Company stamp | €15–€30 (one-time) | Still used on some contracts |
Tip: For digital nomads, a virtual office in Sofia or Plovdiv is sufficient and fully legal.
Payroll & Social Contributions (If You Pay Yourself a Salary)
If you put yourself on the payroll (as manager or employee), here’s what it costs monthly:
| Type | Amount (EUR) | Notes |
|---|---|---|
| Gross salary | e.g., €1,000/month | Paid to yourself |
| Employer contributions | €180–€250/month | ~18–19% of gross salary |
| Employee contributions | ~€130/month | Deducted from gross salary |
| Payroll accounting | €20–€50/month | For one employee |
Total monthly cost to company: ~€1,200
Annual payroll cost: ~€14,000 if you pay yourself a salary of €1,000/month
Many foreign owners skip payroll and instead take dividends, saving ~30% in social taxes.
Taxes: Corporate + Dividend
| Tax Type | Rate | When Paid |
|---|---|---|
| Corporate tax | 10% | On net profit, annually |
| Dividend tax | 5% | On payouts to individuals |
| VAT | 20% | Applies if registered, monthly |
Example:
If your EOOD earns €20,000 profit:
Legal and Administrative Fees
| Service | Cost (EUR) | Notes |
|---|---|---|
| Annual compliance check | €100–€300 | Optional but recommended |
| Representation (POA renewal) | €50–€150 | If using an agent |
| E-signature (Bulgarian eID) | €50–€80 | Needed for online filing |
| Company changes (address, name, etc.) | €100–€200 | Only if needed |
Hidden or Irregular Costs
| Situation | Potential Cost | Comments |
|---|---|---|
| Missed filing or tax deadline | €250–€1,000+ fine | Automatic if NSI or NRA deadlines are missed |
| Rejected VAT refund or audit | Time + penalty | Often due to poor invoicing |
| Closing a company | €250–€600 | Lawyer + registry fees |
| Dormant company fees | ~€400/year | Still requires an accountant + filings |
Real-Life Scenarios
Case 1: Digital Nomad with EOOD (No Payroll)
- Virtual office: €150
- Accounting: €700
- Dividend tax (5% on €20K): €1,000
- Legal / support: €150
- Total: ~€2,000/year
- What’s missing? No social insurance, no salary
Case 2: Freelancer Living in Bulgaria, Pays Self a Salary
- Salary: €12,000/year
- Social taxes: €3,500/year
- Accounting & filings: €800
- Legal address: €150
- Total: ~€16,500/year (gross)
Case 3: Dormant Company (No Activity)
- Accounting & NSI: €250–€400
- Legal address: €100
- E-signature: €50
- Total: ~€400–€600/year
- No payroll, VAT, or tax declarations beyond the minimum
Strategic Tips
- No business activity? Keep it dormant, but compliant
- Low revenue? Consider taking dividends, not salary
- Doing business abroad through the BG company? Check where taxes apply
- Always file on time – Bulgarian authorities are fast with fines
Bottom Line: How Much Will You Spend?
| Situation | Annual Cost (EUR) |
|---|---|
| Minimum to keep the company alive | €400–€600 |
| Remote freelancer (no salary) | €1,000–€2,000 |
| Actively operating with a salary | €3,000–€5,000+ |
| Hiring team + active operations | €5,000–€15,000+ |
These are operational costs — not including investment, marketing, office rent, etc.
You Will Also Like To Know About:
- How to Register a Company in Bulgaria
- Types of Companies in Bulgaria – Explained for Foreigners
- Income Taxes in Bulgaria
- Staying in Bulgaria – Visas & Residence for Founders and Freelancers
Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal, tax, or financial advice. While we strive to ensure accuracy and relevance, laws and administrative practices are subject to change. Always consult a qualified legal or tax advisor before making business or residency decisions in Bulgaria.
