Published on and written by Cyril Jarnias
Bulgaria has established itself in recent years as a top destination for foreign entrepreneurs and investors looking to set up a company in Europe. With its favorable tax regime, competitive operational costs, and access to the European market, this Balkan country offers numerous advantages for business development. In this article, we will explore in detail the pros and cons of starting a business in Bulgaria, as well as the administrative steps to follow and the most promising economic sectors.
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Why set up a company in Bulgaria?
Bulgaria offers numerous advantages that make it an attractive destination for entrepreneurs:
A highly favorable tax regime
Bulgaria’s main advantage lies in its particularly favorable taxation for businesses. With a corporate tax rate of only 10%, Bulgaria offers one of the most competitive tax regimes in the European Union. This rate applies to profits earned by companies, whether owned by residents or non-residents.
In comparison, the average corporate tax rate in the EU is around 21%. Bulgaria thus positions itself as a true tax haven within the European Union itself, while complying with European regulations.
Reduced operational costs
Beyond favorable taxation, Bulgaria offers very competitive operational costs compared to most Western European countries. Average salaries are significantly lower, as are rents and other operating expenses. This allows companies to significantly reduce their overhead and improve their profitability.
The minimum wage in Bulgaria is about 400 euros per month in 2025, compared to over 1500 euros in countries like France or Germany. Office rents are also very affordable, with average prices around 10-15 euros/m² per month in major cities like Sofia.
Privileged access to the European market
As a member of the European Union since 2007, Bulgaria offers direct access to the single European market of over 440 million consumers. Companies based in Bulgaria can thus freely export their products and services to other EU countries, without customs barriers.
Bulgaria’s strategic geographical location, at the crossroads of Europe and Asia, also makes it an excellent gateway to Eastern European and Middle Eastern markets.
Good to know:
Bulgaria offers one of the most favorable tax regimes in Europe with a corporate tax rate of only 10%. Operational costs are very competitive, and the country provides direct access to the single European market.
Advantages and disadvantages of setting up a company in Bulgaria
Like any destination, Bulgaria has advantages but also some disadvantages that should be considered before establishing a business there.
Advantages
- Highly favorable taxation: Corporate tax rate of 10%, one of the lowest in Europe
- Reduced operational costs: Skilled labor at competitive salaries, affordable rents
- Access to the European market: EU member since 2007, free movement of goods and services
- Economic and political stability: Sustained economic growth, favorable business environment
- Simplified administrative procedures: Quick and inexpensive company formation
- Modern infrastructure: Developed transportation and telecommunication networks
Disadvantages
- Language barrier: Bulgarian is the official language, English is not always mastered
- Limited domestic market: Population of about 7 million, purchasing power still below European average
- Shortage of skilled labor in some sectors due to emigration
- Corruption and bureaucracy still present despite progress made
- Sometimes negative image among Western partners
Despite these few disadvantages, the advantages offered by Bulgaria in terms of taxation and operational costs remain very attractive to many foreign entrepreneurs. The country has made significant progress in recent years to improve its business environment and attract foreign investment.
Good to know:
Bulgaria offers many advantages for businesses, including highly favorable taxation and reduced costs. The main disadvantages are the language barrier and a still limited domestic market.
Administrative steps to set up a company in Bulgaria
Setting up a company in Bulgaria is a relatively simple and quick process that can be completed in a few weeks. Here are the main steps to follow:
1. Choose the legal form
The first step is to choose the most suitable legal form for your project. The most common forms for foreign investors are:
- EOOD (Ednolichno Druzhestvo s Ogranichena Otgovornost): Equivalent to a single-member LLC, with one shareholder
- OOD (Druzhestvo s Ogranichena Otgovornost): Equivalent to an LLC, with multiple shareholders
- AD (Aktsionerno Druzhestvo): Equivalent to a public limited company, for larger-scale projects
EOOD and OOD are the simplest and most common forms for small and medium-sized enterprises. They require a minimum share capital of only 2 BGN (approximately 1 euro).
2. Reserve the company name
You must then check the availability of the chosen name for your company with the Bulgarian Commercial Register and reserve it. This step can be done online.
3. Prepare the incorporation documents
- The company’s articles of association
- The minutes of the constituent assembly
- The signature specimens of the directors
- A declaration of legal compliance
These documents must be drafted in Bulgarian and certified by a Bulgarian notary.
4. Open a bank account
It is necessary to open a bank account in the name of the company in formation to deposit the share capital. Many international banks are present in Bulgaria and offer services tailored to foreign businesses.
5. Register with the Commercial Register
The final registration of the company is done with the Bulgarian Commercial Register. This step can be done online or through a local representative. The processing time is generally 3 to 5 business days.
6. Obtain a VAT number
If your turnover exceeds the threshold of approximately 166,000 BGN (about 82,000 euros) in 2025, you will need to register for VAT with the Bulgarian tax administration.
The entire process of setting up a company in Bulgaria can be completed in 2 to 4 weeks on average. It is recommended to hire a lawyer or specialized firm to assist you with these steps, especially if you do not master the Bulgarian language.
Good to know:
Setting up a company in Bulgaria is a relatively simple process that can be completed in 2 to 4 weeks. The most common legal forms are EOOD and OOD, equivalents of LLCs, with a minimum share capital of only 2 BGN.
Banks for businesses in Bulgaria
The Bulgarian banking sector is well-developed and offers a wide range of services to businesses, including companies owned by foreigners. Here is an overview of the main banks present in Bulgaria:
Local banks
- UniCredit Bulbank: The largest bank in Bulgaria, subsidiary of the Italian UniCredit group
- DSK Bank: Second largest bank in the country, owned by the Hungarian OTP group
- First Investment Bank (Fibank): Third largest Bulgarian bank, known for its business services
These local banks have the advantage of having good knowledge of the Bulgarian market and often offer services in English.
International banks
Several major international banks are also present in Bulgaria and offer services tailored to foreign businesses:
- Raiffeisen Bank: Austrian bank very present in Eastern Europe
- Eurobank: Greek banking group well-established in Bulgaria
- Citibank: American bank offering services to large corporations
These international banks can be an interesting choice for businesses operating in multiple countries, thanks to their international network.
Banking services for businesses
The main Bulgarian banks offer a complete range of services for businesses, including:
- Current accounts in leva (local currency) and foreign currencies
- Professional credit cards
- Online payment solutions
- Loans and financing
- Currency exchange services
- Cash management
Most banks also offer efficient online banking services, allowing remote account management.
Opening a bank account
Opening a bank account for a company in Bulgaria generally requires the following documents:
- Company’s articles of association
- Extract from the Commercial Register
- Identification documents of directors and beneficial owners
- Proof of company address
- Signature specimens of authorized persons
It is recommended to compare offers from several banks before choosing, taking into account banking fees, services offered, and the quality of customer support.
Good to know:
Bulgaria has a well-developed banking sector, with local and international banks offering a wide range of services to businesses. Opening a bank account generally requires presenting the company’s incorporation documents and identification documents of the directors.
Cost of setting up a company in Bulgaria
Setting up a company in Bulgaria is relatively inexpensive compared to other European countries. Here is an overview of the main costs to expect:
Registration fees
- Company name reservation: about 30 BGN (15 euros)
- Registration with the Commercial Register: 55 BGN (28 euros) for standard registration, 110 BGN (56 euros) for expedited registration
- Notarization of documents: between 100 and 200 BGN (50 to 100 euros) depending on the number of documents
- EOOD and OOD: 2 BGN (approximately 1 euro)
- AD: 50,000 BGN (approximately 25,000 euros)
However, it is recommended to plan for a larger share capital to inspire confidence in your partners and facilitate obtaining financing.
Registered office fees
If you do not have premises in Bulgaria, you will need to use a registered office service. Prices generally range between 1500 and 2400 euros per year.
Service provider fees
If you hire a lawyer or specialized firm to assist you in setting up your company, you should expect fees between 1300 and 2000 euros depending on the complexity of your case and the services included, especially in your language with real support and documents properly translated and validated!
You can do everything yourself with the associated risks: just the language barrier or being certain that your contacts are legally recognized…
Banking fees
Opening a bank account is generally free, but you should expect monthly account maintenance fees of about 10 to 20 euros and a 100 euro deposit.
Total estimated cost
Taking all these elements into account, the total cost to set up a company in Bulgaria can be estimated between 1000 and 2500 euros, excluding share capital. This amount may vary depending on the chosen legal form, the complexity of your case, and the service providers you use.
In addition, Bulgarian banks charge between 350 to over 1000 euros in compliance fees for a foreigner to validate the account opening in 2025.
It is important to note that these costs are significantly lower than those in many other European countries, which reinforces Bulgaria’s attractiveness for foreign entrepreneurs.
Good to know:
The total cost to set up a company in Bulgaria is relatively low, generally between 1000 and 2500 euros excluding share capital. Official registration fees are particularly low, with a symbolic minimum share capital of 2 BGN for an EOOD or OOD.
Promising sectors in Bulgaria
Bulgaria offers numerous investment opportunities in various economic sectors. Here is an overview of the most promising areas for foreign entrepreneurs:
Information technology and outsourcing
The IT sector is one of the most dynamic in Bulgaria, with annual growth of about 10%. The country has established itself as a preferred destination for IT services outsourcing and software development, thanks to skilled labor and competitive costs.
Many multinational companies have set up their shared services centers or R&D centers in Bulgaria, particularly in web development, mobile applications, and artificial intelligence.
Tourism
Tourism is a key sector of the Bulgarian economy, representing about 12% of GDP. The country attracts millions of visitors each year thanks to its Black Sea resorts, mountain ski resorts, and rich cultural heritage.
There are many investment opportunities in hospitality, catering, and tourism services, particularly in the development of sustainable tourism and ecotourism.
Agriculture and agri-food
- Organic production
- Processing of agricultural products
- Export of local products (wines, cheeses, essential oils)
Renewable energy
- Solar energy
- Wind energy
- Biomass
Automotive industry
- Production of automotive components
- Engineering and R&D services for the automotive industry
E-commerce
- Development of online sales platforms
- Logistics services related to e-commerce
- Digital marketing
Healthcare and biotechnology
- Production of medical devices
- Telemedicine services
- Research and development in biotechnology
These sectors often benefit from support programs and tax incentives from the Bulgarian government, making them particularly attractive to foreign investors.
Good to know:
The most promising sectors in Bulgaria include information technology, tourism, agriculture, renewable energy, the automotive industry, and e-commerce. These areas offer numerous investment opportunities for foreign entrepreneurs, with interesting growth prospects.
Conclusion
Setting up a company in Bulgaria offers many advantages for foreign entrepreneurs. With its highly favorable taxation, competitive operational costs, and access to the European market, Bulgaria provides an environment conducive to business development.
The administrative steps to create a business are relatively simple and quick, and the total setup cost remains very affordable compared to other European countries. Moreover, Bulgaria has a developed banking sector offering a wide range of services to businesses.
Investment opportunities are numerous, particularly in promising sectors like information technology, tourism, agriculture, and renewable energy. These areas often benefit from government support and offer excellent growth prospects.
However, it is important to prepare well and surround yourself with competent professionals to succeed in establishing your business in Bulgaria. The language barrier and some local specificities can present challenges that should be anticipated.
Despite these few challenges, Bulgaria remains a very attractive destination for foreign entrepreneurs seeking to develop their business in Europe while benefiting from a favorable fiscal and economic framework.
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Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
