Cost of Setting Up a Company in Bulgaria: Complete Guide

Published on September 29, 2025 and written by Cyril Jarnias

Bulgaria is increasingly attracting foreign entrepreneurs thanks to its favorable economic environment and advantageous tax system. However, before embarking on the entrepreneurial adventure in this Eastern European country, it’s crucial to fully understand the costs associated with company formation. This article will guide you through the various financial aspects to consider when establishing your business in Bulgaria, from registration fees to operational expenses, including strategies to optimize your costs.

Registration Fees: The First Expenses to Anticipate

Registration fees represent the first concrete step in creating your company in Bulgaria. These costs vary depending on the chosen legal form and the services you decide to use.

For a limited liability company (OOD), the most common form for small and medium-sized businesses, the minimum required share capital is only 2 BGN (approximately €1). However, don’t be misled by this symbolic amount. The actual registration fees are more substantial and include:

• Company name reservation fee: approximately 30 BGN (€15)
• Commercial Register registration fee: approximately 110 BGN (€55)
• Official Gazette publication fee: approximately 20 BGN (€10)
• Notary fees for document certification: between 100 and 200 BGN (€50-100)

For a joint-stock company (AD), more suitable for large corporations, the minimum share capital is 50,000 BGN (approximately €25,000). The registration fees are similar to those of an OOD but may be slightly higher due to the increased complexity of the structure.

It’s important to note that these fees do not include lawyer or accountant fees, which may prove necessary to navigate Bulgarian administrative procedures. These professional services can add around €2,000 to your initial costs, depending on the complexity of your case and the level of assistance you require.

Compliance Costs: Staying Within the Rules

Once your company is registered, you’ll need to face recurring costs to maintain your business in compliance with Bulgarian legislation. These expenses are essential to avoid penalties and ensure the proper functioning of your company.

Accounting and Audit

Maintaining accounting that complies with Bulgarian standards is mandatory. Costs vary depending on the size of your business and the complexity of your operations:

• For a small business: between €200 and €300 per month
• For a medium-sized business: between €300 and €800 per month
• For a large business: €800 and more per month

Companies exceeding certain thresholds (turnover, total balance sheet, number of employees) are also subject to mandatory annual audits, with costs ranging from €1,500 to €5,000 or more, depending on the size and complexity of the business.

Tax and Social Security Declarations

Preparation and filing of tax and social security declarations are generally included in accounting services. However, if you choose to manage them yourself, plan for time and potentially specialized software fees.

Annual Renewals

Each year, your company must renew its registration with the Commercial Register, which involves fees of approximately 40 BGN (€20). Additionally, you’ll need to file your annual accounts, a procedure that may incur additional fees if you use a professional to prepare the documents.

Specific Licenses and Permits

Depending on your industry, you may need specific licenses or permits. Costs vary considerably from one sector to another, ranging from a few hundred to several thousand euros. For example, a license to operate in the financial sector can cost several tens of thousands of euros.

Initial Investment: Preparing the Ground for Your Success

The initial investment goes well beyond simple registration fees. It’s the capital needed to actually launch your operations and ensure the viability of your business during the first months, or even the first year.

Office Rental

Rental costs in Bulgaria are attractive compared to many other European destinations. In Sofia, the capital, prices vary considerably by location:

• City center: €12-15/m²/month
• Peripheral business areas: €10-12/m²/month
• Industrial zones: €6-10/m²/month

Don’t forget to include security deposit fees (typically 1 to 3 months’ rent) and utilities (approximately 15-20% of the rent) in your budget.

Equipment and Furniture

Furnishing your premises represents a significant investment. Budget between €3,000 and €10,000 to equip a small office for 4 to 5 people, including furniture, computers, and other essential equipment.

Recruitment and Training

If you plan to hire local staff, budget for recruitment costs (agencies, advertisements) and initial training. These costs can range from €500 (part-time) to €2,000 per employee in Sofia, depending on the position and required expertise level.

Marketing and Communication

To make your business known in the Bulgarian market, plan an initial marketing budget. This may include:

• Website creation: €1,000 – €5,000
• Promotional materials: €500 – €2,000
• Advertising campaigns: €1,000 – €10,000 or more, depending on scale

Working Capital

Finally, don’t forget to allocate sufficient working capital to cover your operational expenses during the first months, before your business generates stable revenue. A rule of thumb is to budget for at least 6 months of operational expenses.

Operational Expenses: Keeping Your Business Running

Once your business is launched, you’ll need to face regular operational expenses. Although Bulgaria offers a relatively affordable economic environment, it’s essential to understand and anticipate these costs to ensure the sustainability of your activity.

Salaries and Social Security Contributions

Salaries in Bulgaria are among the lowest in the European Union, which can represent a competitive advantage for your business. However, they tend to increase, particularly for qualified profiles. Here are some examples of average monthly gross salaries:

• Administrative assistant: €700 – €1,000
• IT developer: €1,500 – €3,000
• Middle manager: €2,000 – €4,000

Social security contributions in Bulgaria represent approximately 19% of the gross salary for the employer. Don’t forget to include these contributions in your personnel budget.

Rent and Utilities

If you rent premises, rent and associated utilities will constitute a significant portion of your monthly expenses. As mentioned earlier, prices vary considerably by location and quality of premises. Also budget for electricity, water, heating, and air conditioning costs, which can represent an additional 15 to 20% of the rent.

Professional Services

The ongoing management of your business will likely require various professional services:

• Monthly accounting: €200 – €800 depending on company size
• Legal services: €100 – €200 per hour for a specialized lawyer
• IT services: €500 – €2,000 per month for a small business

Marketing and Business Development

To maintain and develop your activity, you’ll need to continuously invest in marketing and business development. Depending on your strategy, this may include:

• Online advertising: €500 – €3,000 per month
• Trade show participation: €2,000 – €10,000 per event
• Public relations: €1,000 – €5,000 per month

Taxes and Levies

Bulgaria offers one of the lowest corporate tax rates in Europe at 10%. However, don’t forget other taxes:

• VAT: 20% (with a registration threshold of 166,000 BGN, approximately €25,000)
• Property tax: varies by municipality, typically between 0.1% and 0.45% of property value
• Waste tax: calculated based on property value or volume of waste produced

Cost Reduction Strategies: Optimizing Your Investment

Despite the economic advantages offered by Bulgaria, it’s always wise to seek cost optimization. Here are some effective strategies to reduce your expenses while maintaining the quality of your operations.

Using Shared Offices or Coworking Spaces

Instead of renting traditional offices, consider coworking spaces or shared offices, particularly popular in Sofia and other major Bulgarian cities. This option can significantly reduce your real estate costs while offering valuable flexibility for a startup. Prices range from €200 to €300 per month per workstation, often including utilities and some services.

Outsourcing Certain Functions

Bulgaria is recognized for its dynamic IT sector and competitive outsourcing services. Consider outsourcing non-essential functions like customer support, certain aspects of IT development, or even accounting. This can help you reduce your fixed costs and benefit from specialized expertise without having to hire full-time.

Legal Tax Optimization

Fully leverage Bulgaria’s advantageous tax regime. For example:

• Utilize free zones for certain import-export activities
• Use tax incentives for R&D and innovation
• Optimize your corporate structure to benefit from international tax treaties

Consult a local tax expert to ensure you comply with all regulations while optimizing your tax situation.

Investment in Technology

Although it may seem counterintuitive, investing in automation and management technologies can reduce your long-term costs. For example, a good customer relationship management (CRM) system can improve your sales efficiency, while automated accounting tools can reduce your administrative staffing needs.

Training and Development of Local Skills

Rather than relying on expensive expatriates, invest in training and developing local talent. Bulgaria has a well-educated and often multilingual workforce. By developing the skills of your local employees, you can create a loyal and competent team at a lower cost than international recruitment.

Supplier Negotiation

Don’t hesitate to negotiate with your suppliers to obtain better terms. The business culture in Bulgaria is open to negotiation, and you could achieve significant reductions, especially if you commit long-term or for large volumes.

Conclusion: A Strategic Investment in a Promising Market

Creating a company in Bulgaria represents an attractive opportunity for entrepreneurs looking to establish themselves in Eastern Europe. With overall costs lower than many Western countries and an advantageous tax regime, Bulgaria offers fertile ground for business development.

However, as we’ve seen, it’s crucial to fully understand and anticipate all costs associated with creating and operating a business in this country. From registration fees to ongoing operational expenses, including initial investment and compliance costs, every financial aspect must be carefully planned.

The key to success lies in meticulous preparation, rigorous financial management, and a willingness to adapt your strategies to local market realities. By combining the economic advantages offered by Bulgaria with an intelligent and informed business approach, you can minimize your costs while maximizing your chances of success.

Remember that investing in creating a company in Bulgaria goes beyond mere numbers. It’s also an investment in a growing market, a gateway to Eastern Europe, and an opportunity to benefit from an increasingly dynamic and innovative business environment.