What You Don’t Know About Doing Business in Bulgaria

Starting is cheap. Staying compliant isn’t always. While the corporate tax rate is just 10% and capital requirements are as low as € 1, foreign-owned companies often underestimate costs such as accounting, tax filings, payroll reporting, and legal support.
A dormant company may cost only €400–€700 per year to maintain. But an active, VAT-registered company with staff can quickly exceed €2,000–€5,000 in real annual expenses. Be realistic about operating costs beyond registration fees.

It depends on your citizenship, documentation, and the bank you choose. Most banks will request a physical presence for account opening, especially for non-EU citizens. Requirements often include proof of company activity, contracts, and local address or utility bills.

Some banks are more foreigner-friendly than others. UBB, Postbank, and Raiffeisen are often easier. DSK and ProCredit may require more documentation or due diligence. If you’re opening remotely, work with a local accountant or lawyer to pre-arrange the process.

Learn how to open a company bank account in Bulgaria.

No. You can register and own a Bulgarian company without living in Bulgaria. However, this does not grant you the right to stay in the country in the long term. For that, you need a residence permit (such as a long-term residence, EU Blue Card, or the new Digital Nomad Visa introduced in 2025).

Company ownership may support your application, but it is not sufficient on its own. If your goal is to live in Bulgaria, consider a dual-track approach that combines company and immigration strategies.

Probably not. Company registration is relatively fast (2–3 business days), but further administrative steps often cause delays. VAT registration may take 1–3 weeks. Tax office (NRA), National Statistics (NSI), and e-government platforms do not offer English interfaces and can be inconsistent.

If you’re managing the company remotely, appointing a local professional with experience in foreign-owned companies is highly recommended. Avoid DIY errors that could lead to fines or rejections.

Very formal. Despite the perception of informality in some sectors, Bulgarian courts are conservative. You’ll need signed, dated, clearly structured contracts — in Bulgarian or with certified translation — especially if legal action is ever required.
Company stamps are still expected on many business documents. Email exchanges, verbal agreements, or WhatsApp messages do not carry legal weight. Invest in proper legal drafting from the beginning.

Firing employees can be slow and expensive, even during trial periods. Vendors often expect prepayment, particularly in the construction and services sectors. Bank transfers may be delayed around Bulgarian holidays. Invoices must adhere to strict formats, and VAT journals are mandatory for registered businesses.

E-government systems are fragmented — you’ll likely deal with multiple portals (tax, statistics, trade register) that don’t integrate or communicate. Navigation is difficult without a Bulgarian speaker.

Punctuality is respected in formal settings. Hierarchy is valued, especially in traditional industries. Email culture is evolving, but it remains slow in some sectors; phone calls or in-person meetings are often preferred.

Formality is essential in writing. Use polite titles and structured formatting. Always carry printed copies of documents when dealing with public institutions. Patience, persistence, and politeness go a long way.

Enforcement through Bulgarian courts is slow and can take years. Civil claims often move at a glacial pace. Judgments may be difficult to enforce if assets are hidden or outside Bulgaria.

Use a lawyer to draft robust contracts that include penalties for non-payment or breach. Avoid post-paid agreements unless you’re dealing with large or known clients. Mediation and arbitration are underused but available.

Yes. Bulgarian law requires all companies to:
– File an annual corporate tax return by March 31
– Submit annual statistics to NSI
– Maintain complete accounting records for 5+ years
– Report all invoices, even if not VAT-registered

An accountant can also manage your social security, payroll, VAT registration, and dividend declarations. Attempting to do this alone, especially in Bulgarian, is rarely successful and often ends in fines.

While the challenges are real, so are the benefits. Bulgaria offers a flat 10% personal and corporate tax rate, a 5% dividend tax, low employment costs, and access to the entire EU market.

There is a growing tech and startup scene in Sofia and Plovdiv, along with excellent IT and financial talent. Nearshoring potential is high. Infrastructure is good, and costs are significantly lower than in Western Europe.

For service-based businesses, holding companies, freelancers, and digital nomads, Bulgaria remains one of the most strategic choices in the EU — if you’re correctly set up.