Frequently Asked Questions

🪙 Company formation in Bulgaria

What is the corporate tax rate in Bulgaria?
The rate is fixed. The corporate tax (flat tax) is 10% on net profits.
The withholding tax rate on dividends distributed to individuals is 5%.
The legal minimum is 2 BGN, or about 1 euro. However, it is advisable to deposit a larger amount to reassure the banks.
The standard VAT rate is 20%.
Yes. Even if there is no activity or if the company is subject to VAT, the filing of monthly accounting declarations is mandatory under penalty of heavy fines.
Yes. No Bulgarian nationality is required by law for shareholders or managers. You can own 100% of the shares.
Yes. The company must have a real tax address in Bulgaria to receive correspondence from the administration. Business domiciliation is permitted.
What legal form should be chosen?

EOOD: Single-member limited liability company.
OOD: Limited liability company with multiple members.

🏠Real estate investment in Bulgaria

Rental income is subject to a single tax rate of 10% (Flat tax).
Can a foreigner freely buy real estate in Bulgaria?
Yes, for buildings (apartments, commercial premises, offices). Any foreign national (individual or legal entity) can own a dwelling in their own name.
The local property tax (Данък сгради) and the household waste tax are very low. They generally vary between 0.1% and 0.45% of the estimated tax value of the property.
How does capital gains tax work on resale?
The flat rate is also 10%. However, the tax drops to 0% (total exemption) if you sell only one residential property per year that you have owned for more than 3 years.
No. Thanks to bilateral tax treaties (such as the Franco-Bulgarian treaty), taxes paid in Bulgaria entitle you to a full tax credit in your country of origin, thus eliminating double taxation. Furthermore, French non-residents are completely exempt from CSG/CRDS social security contributions on this income.
Citizens of the European Union (EU/EEA): You can purchase land in your own name if it is attached to a residential property (such as a house with a garden).
Non-EU citizens: Direct purchase of land (agricultural or commercial) is prohibited in your own name. You must establish a Bulgarian company (EOOD/OOD) to become the owner of the land.

🌍Moving to Bulgaria

Is Bulgaria part of the European Union?



Yes. Bulgaria has joined the Schengen Area. The official currency has been the Euro since January 1, 2026. As an EU citizen, you can enter and stay in Bulgaria for up to 3 months with just a valid identity card or passport.
If you stay for more than 3 months, you must apply for a long-term residence certificate (Lichna Karta) from the local migration police.
You are considered a tax resident if you spend more than 183 days a year in Bulgarian territory or if the center of your vital interests (economic and personal) is located there.
The rate is fixed. Bulgaria applies a flat tax of 10% on all personal income. There is no progressive tax scale.
Not necessarily. In tourist areas, English is widely used. In specific sectors (international call centers, business process outsourcing (BPO), and tech companies), speaking French and English may be enough to land a job. However, learning the local language is a plus for integration.
The cost of living is generally lower. The most economical items are housing, food, and transportation. Technological products and imported cars are similarly priced.