Residence, Visa, and Company Formation in Bulgaria: A Guide for the Foreign Entrepreneur

Published on October 17, 2026 and written by Cyril Jarnias

Setting up in Bulgaria is increasingly intriguing for foreign entrepreneurs. Low taxes, low cost of living, adoption of the euro, entry into Schengen, a booming IT and real estate sector… on paper, the country checks many boxes. But turning the desire into a concrete project requires navigating visas, residence permits, company creation, property rules, and often baffling cultural codes.

What company creation in Bulgaria allows—and does not allow

First key point: Bulgaria clearly distinguishes between the right to invest and set up a company, and the right to reside there. Setting up a company does not, by itself, grant a visa or residence permit.

In general, there is no prior review or quota on foreign investment, nor any requirement for government approval before creating or acquiring a company. Commercial and tax rules apply equally to local players and foreigners.

For an entrepreneur, the issue is therefore not “Can I create a company?” (the answer is almost always yes), but “On what basis can I then apply for a D visa and a residence permit?”.

The most common company forms used by foreigners

The most widespread vehicle is the limited liability company type OOD (multiple members) or EOOD (single member). The OOD is equivalent to an LLC, the EOOD to a single-member LLC or a single-person GmbH. These forms are popular because they are inexpensive to set up, flexible to manage, and protect the personal assets of the members.

Alongside these structures, the law also allows the establishment of branches or trade representative offices (TROs) of foreign companies. A branch is an extension of the parent company, registered in the commercial register and endowed with a certain legal personality. A representative office, however, has no legal personality and cannot engage in commercial activity: it is limited to prospecting, marketing, and representation.

These TROs play a key role in certain residence paths, as we will see later.

How to register a company: step-by-step procedure

The procedure for creating an OOD/EOOD is fairly standardized and, for a prepared entrepreneur, quick. You just need to account for several constraints: Bulgarian language mandatory in documentation, notarial formalities, and, since banking rules have tightened, difficulty in doing everything remotely.

Choosing a name and checking with the register

The first step is to choose a company name that is available and not misleading regarding the activity. Availability is checked with the Commercial Register, kept by the Registry Agency. The chosen name must then be reserved, to avoid unpleasant surprises at the time of filing.

Drafting the articles of association and constitutive documents

Next comes preparing the file:

– articles of association (or deed of incorporation for an EOOD);

– minutes of the constitutive meeting;

– decision on the registered office address and corporate purpose;

– specimen signature of the manager, certified by a notary;

– declaration of consent of the manager;

– certificates of no debts, acceptance of duties, list of planned activities.

All documents must exist in Bulgarian. Bilingual versions (e.g., Bulgarian–English) are possible, but in case of discrepancy, the Bulgarian version prevails. If you provide documents originally drawn up in another EU language, they must be accompanied by a certified translation into Bulgarian.

For an entrepreneur who cannot travel, the solution is to give power of attorney to a local lawyer. However, banks are increasingly reluctant to open accounts remotely for non-residents, which limits the possibility of a 100% “remote” creation. Powers of attorney and signatures executed abroad must additionally be notarized and apostilled, unless signed before a Bulgarian consul.

Opening the capital account

Before filing with the register, the law requires opening a special bank deposit account for capital (accumulation account or escrow sub-account) and depositing the share capital. The bank then issues a deposit certificate that is an integral part of the file. Only after registration is this account converted into a current business account.

Filing with the Commercial Register and obtaining the identification code

The file is then submitted to the Commercial Register, either online or on paper. Electronic filing is cheaper: 55 BGN (about 28 €), compared to 110 BGN (about 56 €) for physical filing. The official form (form PO) must be signed, with authentication of signatures.

Once the capital is paid in, the notarized signature of the manager and all documents are ready, the Registry Agency processes the request, usually within one to three business days. At the end of the procedure, the company receives a unique identification code (UIC) that will be used for all subsequent steps.

Tax registration, Bulstat, and VAT

After registration, the company is automatically reported to the tax administration (National Revenue Agency). A Bulstat number is assigned, which serves as a tax identifier in dealings with authorities.

In case of hiring, the company must also register for social security and payroll within seven days of the arrival of the first employees.

Realistic timelines and costs

In practice, an entrepreneur physically present in Bulgaria with all documents can complete the creation in three business days. A semi-remote process relying on power of attorney and apostille will rather take two to four weeks.

The overall cost to set up a standard EOOD (fees, administrative and bank costs) is often between 400 and 800 € for a standard creation, more if additional support services (accounting, tax advice, etc.) are added.

Taxation: one of the country’s main assets

Bulgaria is known for its “light” taxation. The corporate income tax rate is 10% and applies uniformly to all companies, regardless of size or turnover. It is one of the lowest in the European Union. Personal income tax is also a flat rate of 10%.

Exemptions and sectoral incentives are numerous:

Distributed dividends are, in principle, subject to a 5% withholding tax, unless the parent company is a resident of another EU state holding at least 10% of the capital for one year; in that case, the EU exemption applies. Many double tax treaties also reduce this burden for residents of partner countries.

For a sole entrepreneur or self-employed person, the legislation also provides interesting flat-rate deductions depending on the type of activity (up to 60% for certain agricultural activities, 40% for copyright, 25% for certain liberal professions), before applying the flat rate of 10%.

Visas and residence permits: key options for entrepreneurs

Entering Bulgaria for a few days of meetings and staying for several years to develop a business are two completely different legal realities. The foreign entrepreneur must therefore understand the different layers: short-term Schengen stay, long-stay type D visa, temporary or permanent residence permit.

Short stay: 90 days out of 180 in the Schengen area

Since joining Schengen, Bulgaria applies the classic 90/180 rule for short stays. A third-country national can come for a business trip (meetings, conferences, prospecting) up to 90 days within any rolling 180-day period, without working locally or establishing a permanent establishment.

Some countries benefit from visa exemption for these stays; others (such as India) must apply for a type C Schengen visa. This visa authorizes presence, not the exercise of Bulgarian professional activity or the creation of a local structure as a basis for residence.

Long-stay type D visa: a mandatory step

As soon as a non-EU national wishes to stay more than 90 consecutive days (or more than 90 out of 180) in Bulgaria, they must apply for a long-stay visa (type D) from the competent Bulgarian consulate. This visa is not a work permit per se, but it opens the door to applying for a residence permit once on the ground.

Standard documents for the D visa include:

– application form and two passport photos 45×35 mm;

– valid passport for the entire duration of the stay, with a free page;

– proof of financial means (generally at least the equivalent of six Bulgarian minimum monthly salaries);

– health insurance covering medical care, hospitalization, and repatriation;

– proof of accommodation (lease signed before a notary, property deed, hotel reservation, or proof of sufficient funds for housing);

– criminal record extract;

– payment of consular fees (about €100 for many countries).

Documents must be certified translated into Bulgarian if issued in another language. Consulates typically set a processing time of about 30 days, with an in-person interview required.

But for an entrepreneur, the crucial point is the legal “ground” on which the application is based. This is where the various programs come in: job creation, commercial representation, innovative start-up, investment, freelance activity, digital nomad visa…

Creating 10 local jobs: a gateway to residence, even permanent residence

The most emblematic formula for classic entrepreneurs is based on creating at least 10 full-time jobs for Bulgarian citizens.

In a more ambitious version, set out in Article 25(1)(16) of the Law on Foreigners, this same creation of 10 jobs by a Bulgarian company owned by the foreigner can lead directly to permanent residence, without going through five years of temporary stay. The file is then examined by the InvestBulgaria agency. If accepted, the applicant obtains a much more stable permanent resident status, with access to the labor market without a permit, full health and social coverage, and a countdown toward citizenship after ten years of legal presence.

The following table summarizes the logic of these “10 jobs” routes:

It quickly becomes clear that this scheme is aimed less at micro-freelancers than at structured projects capable of supporting a significant local workforce.

Representative offices: a flexible lever for certain profiles

Another widely used route, especially for entrepreneurs already heading a company in their home country: the representative office (TRO). A foreign company, existing for at least two years and with good tax integrity, can declare a representative office in Bulgaria with the Chamber of Commerce and Industry.

This office is not allowed to invoice or have turnover in Bulgaria. It serves as a showcase, a prospecting platform, and a coordination hub. In return, up to three foreign representatives of this company can apply for a D visa and then a renewable annual residence permit, based on this representation mission, without the obligation to create 10 local jobs.

The typical profile for this route is an IT consultant, a service provider, or a director of a non-European ESN who wants to personally settle in Bulgaria while continuing to develop their business mainly abroad. They must demonstrate that the parent company is healthy, has sufficient income, and can finance their presence (references mention, for example, a monthly resource level of around €2,900 for some TRO files).

Innovative start-up and “Startup Visa” certificate

For founders of tech projects, Bulgaria has introduced a specific scheme, often described as a “Startup Visa”. In practice, it is not a visa per se, but a certificate issued by the Ministry of Innovation and Growth attesting to the innovative and high-tech nature of the project.

The non-European entrepreneur submits online, via the national investment management platform, a file including:

Optional but highly valued documents can accompany the file: patents, awards from innovation competitions, a Horizon Europe “Seal of Excellence,” letters of intent from investors for at least 100,000 BGN, proof of existing sales, etc.

A panel of experts (Start-up Council) evaluates the project based on weighted criteria (financial soundness, innovation, market, partnerships, team…) and must award at least 8 points to issue a positive opinion. The decision is normally made within 30 days, extendable to two and a half months if additional information is requested.

Once the certificate is obtained, the founder can use it as a basis for a D visa from the consulate, and then for a residence permit in Bulgaria. The certificate is initially valid for one year, extendable for an additional two years if the holder demonstrates progress in their company and holds at least 50% of a Bulgarian company whose purpose matches the approved project.

So we have a two-stage pipeline: first recognition of the innovative project by the economic authorities, then use of that recognition to justify a right of stay.

Digital nomad visa: residing without working for the local market

With the rise of remote work, Bulgaria has also launched a “digital nomad” visa aimed at non-European professionals who earn their living abroad but wish to live in Bulgaria for one to two years.

This residence visa is intended for three types of profiles:

– employees of companies located outside the EU/EEA/Switzerland, authorized to work fully remotely (category A);

– founders, partners, or representatives of non-European companies in which they hold at least 25% of the capital (category B);

– freelancers and self-employed individuals providing digital services (developers, designers, writers, consultants, marketers, etc.) to clients located outside Bulgaria and outside the EU/EEA (category C).

The fundamental principle: income must come from outside Bulgaria and the EU/EEA. With this visa, it is not permitted to work for Bulgarian employers or serve local clients.

Financial conditions are structured around the legal minimum wage. In 2026, the Bulgarian gross minimum wage is set at 1,213 BGN (about €620) per month. To be eligible, the candidate must demonstrate, over the previous calendar year, an annual income at least equal to 50 times this monthly wage, i.e., 60,650 BGN (about €31,000). Proof is provided via bank statements, employment or freelance contracts, tax returns from the country of origin.

Classic self-employment: the freelance work permit

Another possibility, more formal and more regulated: “classic” self-employment (outside the digital nomad framework). Here, the entrepreneur must apply for a work permit for self-employment, issued by the Employment Agency, before obtaining a D visa and a residence permit.

The file is based on a detailed business plan evaluating the economic and social impact of the project, supplemented by:

– proof of qualifications (diplomas, at least two years of professional experience);

– a B1 level certificate in Bulgarian;

– demonstration of sufficient financial resources.

The permit is valid for one year, renewable up to three years. After three years, the rule requires a return of at least one month to the country of origin before applying for a new cycle. The residence permit is aligned with the duration of the work permit. This scheme is therefore heavier in terms of bureaucracy and language integration, but may suit certain liberal professions or craftspeople targeting the local market.

Investments and “golden visa”

For more wealth-oriented profiles, Bulgaria has provided routes based on investment. These include:

– a route based on an investment of about 1 million BGN (around €500,000) in approved investment assets, granting direct access to permanent residence without the obligation to create jobs;

– temporary residence permits for more modest investments (about €128,000 in a company in a disadvantaged area, or around €307,400 in real estate or the capital of a Bulgarian company with at least 50% ownership).

These schemes are strictly regulated and generally require prior validation by the investment authorities (InvestBulgaria, competent ministry).

From temporary residence to permanent residence and citizenship

In general, a foreigner who has legally resided in Bulgaria for five years with a stable temporary title may apply for permanent residence, provided they have not left the country for more than six consecutive months nor more than ten months total during that period. The application is made to the Migration Directorate or the consulate.

A permanent resident no longer needs a work permit, enjoys full access to health and social coverage, and sees their situation considerably stabilized. After ten years of residence (temporary or permanent combined), the option of Bulgarian citizenship can be explored.

Real estate and companies: buying in your own name or through a company

The question “company or not?” often arises, not only for economic activity but also for real estate.

Apartments: no restriction in principle

A reassuring point for many expats: Bulgaria imposes no quotas or government approval procedure for foreigners buying apartments. EU, EEA, or third-country nationals can purchase studios, apartments, or condominium units in their own name, provided they have a Bulgarian tax number and declare the acquisition with the Registry Agency.

Condominium housing is not legally considered direct land ownership, which explains this broad openness.

Land and houses: the company as a standard solution for non-EU nationals

Historically, Article 22 of the Constitution, supplemented by other texts, severely restricted foreigners’ access to land ownership. Today, EU and EEA citizens have almost identical rights to Bulgarians to buy land and houses with land.

In practice, the solution for a non-EU national wishing to own a house with land is to incorporate a Bulgarian company (usually an OOD) and have the land ownership held by that company. Since any locally registered company is a Bulgarian legal entity, it is not considered “foreign” in the constitutional sense and can buy land and buildings. The foreign investor then owns the shares of the company, and indirectly the property.

Real estate taxation and ongoing costs

The country remains attractive also for its modest property charges. Annual property tax generally ranges between 0.01% and 0.45% of the property’s tax value. For a standard apartment, the annual bill excluding garbage collection fees is often between €50 and €200, plus a garbage fee of €100 to €400 depending on the municipality and services.

These amounts compare favorably with taxation and charges that are much heavier in many Western European countries.

Dealing with banks: a friction point to anticipate

Despite welcoming taxation, entrepreneurs still often encounter a banking ecosystem perceived as inflexible: little information available in foreign languages, limited competition between institutions, sometimes high fees, and high requirements for opening business accounts for non-residents.

Integrating into Bulgarian society: understanding business culture

Beyond the laws, succeeding in Bulgaria requires a good reading of the human landscape. The country remains officially quite hierarchical, with often centralized management styles and a certain distrust of change, especially among generations who experienced the communist era. The concept of the group and the concern for preserving harmony strongly influence decision-making.

Personal relationships are at the heart of the game. It is difficult to move forward without a network, and “knowing the right people” is seen as a normal lever, not an anomaly. Decisions are frequently made outside the formal office setting: over meals, evenings, family events. Investing time in these informal moments is not a luxury but a key to success.

A folkloric but important element, a classic source of misunderstandings: head gestures. In traditional Bulgarian gesturing, nodding side to side can mean “yes,” while a repeated vertical movement can mean “no.” More and more Bulgarians adapt their body language when dealing with foreigners, adding another potential layer of confusion. All the more reason to confirm decisions and commitments in writing after meetings.

The following table can serve as a cultural memo for the foreign entrepreneur:

Finally, it is worth noting that the country is still marked by bureaucracy issues and, in some cases, corruption. Unscrupulous interlocutors may suggest “gifts” to speed up a file or overlook an anomaly. Without falling into paranoia, it is better to be prepared, to have reliable local advisors, to maintain a polite but firm stance, and to document interactions with the administration as much as possible.

Integrating into the entrepreneurial ecosystem: networks, coworking spaces, and communities

To offset these institutional frictions, Bulgaria has a surprisingly dynamic entrepreneurial ecosystem. Sofia has established itself as a major hub for IT and start-ups in Eastern Europe. There is a wealth of coworking spaces (Puzl CowOrKing, Betahaus, Networking Premium, among others), events, and specialized communities.

Expatriates are not forgotten: communities like “The Startup Founders Community Bulgaria” explicitly target English-speaking founders and professionals, with free events and “working afternoons” in several cities. Entrepreneur Night Out, presented as the country’s largest business networking event, gathers very diverse profiles around entrepreneurship every month in Sofia, Plovdiv, and elsewhere.

Immersing yourself in these networks not only accelerates business (finding suppliers, clients, talent) but also helps decode society. It is an opportunity to observe firsthand what is happening between generations: a youth hungry for opportunities and international openness, facing older decision-makers carrying a culture of stability and caution.

Cost of living and general environment: a favorable ground to launch and test

For an entrepreneur coming from a high-cost country, Bulgaria remains one of the most affordable environments in the EU. The cost of living is about 50% lower than in countries like France, and Sofia regularly appears in international rankings as significantly cheaper than London, Vienna, or even Bucharest.

On the health front, residents—including insured foreigners—have access to a healthcare system at moderate cost. Membership in the local scheme via social contributions (employee or self-employed) provides basic coverage, supplemented if needed by private insurance.

Add to this the generalization of the euro, which eliminates exchange rate risk, and full integration into Schengen, which facilitates business travel. The entrepreneur building their structure from Bulgaria thus benefits from a European environment, low taxation, contained fixed costs, and a still competitive real estate market.

Conclusion: strategy, patience, and local anchoring

Bulgaria is neither an “administrative paradise” nor a simple mailbox platform. The country has opened its doors wide to foreign investment and offers a very competitive arsenal of schemes for those who want to do business: 10% taxation, special regimes for high-unemployment areas, Startup Visa-type programs, a fast track to permanent residence through job creation, and new visas for remote workers.

But the legislator has been careful not to confuse the right to invest and the right to reside. Hence the need for the foreign entrepreneur to build a coherent project that combines:

Those who succeed in navigating these different layers discover a country capable of offering a rare combination in Europe: attractive tax and regulatory environment, affordable cost of living, a growing tech ecosystem, and full access to the European market via the euro and Schengen. Provided they are willing to play the local game—patience, relationships, documentary rigor—Bulgaria can become much more than a “tax deal”: a real base for life and development for a foreign entrepreneur.

Sources

• PwC Tax Summaries — Bulgaria (reviewed 02/08/2026)

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Cyril Jarnias

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.

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