GoLowest CIT in the EU
10 % flat on company profits, 10 % income tax – one of Europe's simplest tax systems.
Company formation
Company Formation in Bulgaria
Bulgaria combines the EU's lowest regular corporate tax (10 %) with very fast, inexpensive formation. Since 1 January 2026 the euro is the official currency (€1 = 1.95583 BGN, fixed conversion rate). Legal status: 2026, without guarantee.
CIT 10 % (EU minimum)EOOD from €1euro since 1 Jan 2026
Key figures
Bulgaria at a glance
10 %
Corporate tax (flat)
1 €
Minimum capital EOOD/OOD (2 BGN)
1–3 days
Commercial-register entry
5 %
Withholding tax on dividends
Advantages
What speaks for Bulgaria
Euro since 2026
With euro accession on 1 Jan 2026, currency risk disappears; the rate had been pegged for years.
Fast and cheap
EOOD from €1 capital, registration in 1–3 days, low running costs and wages.
Tax comparison
Example: €100,000 profit
| Germany | Bulgaria | |
|---|---|---|
| Corporate tax | ~30 % (effective) | 10 % flat |
| Tax on €100,000 profit | ~€30,000 | €10,000 |
| Dividends to individuals | 25 % withholding tax (+ surcharge) | 5 % withholding tax |
Total burden down to private withdrawal: around 14.5 % (10 % CIT + 5 % on the distribution). German/Austrian CFC and exit rules apply to those relocating.
Legal forms
Legal forms at a glance
| Legal form | Minimum capital | Liability | Typical use |
|---|---|---|---|
| EOOD (single-member LLC) | 2 BGN (~€1) | limited | Standard for solo founders |
| OOD (LLC) | 2 BGN (~€1) | limited | Multiple shareholders |
| AD (joint-stock) | 50,000 BGN (~€25,565) | limited | Larger firms |
| Branch | — | parent liable | Market entry |
Process
How incorporation works
Check the company name
Check availability in the commercial register.
Formation documents
Articles/deed of formation, notarised specimen signature of the manager.
Capital account
Open the deposit account, pay in the capital (from €1).
Commercial register
Registration with the Registry Agency – usually 1–3 days.
Tax/UIC + VAT
Unified identification code (UIC) automatic; VAT registration as needed.
Business account + accounting
Open the current account, appoint an accountant (monthly filings).
Total time usually under a week.
Costs
Costs (indicative)
Registration fees ~€50–150, with advice/notary ~€500–1,500; ongoing accounting from ~€100–200/month (indicative).
Taxes
Corporate taxes
| Item | Rate |
|---|---|
| Corporate tax | 10 % (flat) |
| Withholding tax on dividends | 5 % (0 % to EU parent companies) |
| Income tax (individuals) | 10 % (flat) |
| VAT (DDS), standard rate | 20 % |
VAT registration duty from 166,000 BGN (~€85,000) annual revenue; voluntary registration possible.
Knowledge check
Worth remembering
Tap a card to reveal the answer. Content AI-assisted and editorially reviewed.
CIT in Bulgaria?
Show answer
10 % flat – EU minimum (together with Hungary's 9 %).
Minimum capital EOOD?
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2 BGN, about €1.
Since when does the euro apply?
Show answer
Since 1 January 2026.
Location in numbers
Bulgaria in numbers
| Metric | Value |
|---|---|
| Corporate tax | 10 % – lowest regular CIT in the EU (since 2007) |
| Euro accession | 1 January 2026 (21st member of the eurozone) |
| Population | ~6.4 m |
| Dual price display BGN/EUR | mandatory until 8 August 2026 |
Latest developments
Latest developments (as of July 2026)
- Euro official currency since 1 Jan 2026; conversion at the fixed rate of 1.95583 BGN/€.
- CIT stays at 10 %; no increase decided in the course of euro accession.
- Growing nearshoring and IT scene, above all in Sofia and Plovdiv.
FAQ
Frequently asked questions about Bulgaria
How high is the total tax?
10 % CIT plus 5 % on distributions – together around 14.5 % down to private withdrawal.
How fast is formation?
Registration usually in 1–3 days; under a week overall.
Do I still need lev accounts?
No – since 1 Jan 2026 the euro is the official currency.
What about substance?
For tax recognition from a German/Austrian perspective, office, management and activity on the ground are decisive.
Related countries
These locations might also interest you
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Hungary
CIT 9 % (EU minimum)Kft. from ~€7,500
Country guide
Company formation
Croatia
profit tax 10/18 %d.o.o. from €2,500
Country guide
Company formation
Albania
15 % profit tax0 % for small businesses until 2029
Country guide
Sources & disclaimer
Sources
- Registry Agency (commercial register)
- National Revenue Agency (NRA)
- InvestBulgaria Agency
- European Commission — Bulgaria's euro accession
This page is for general information only and does not replace legal or tax advice. Binding information is provided by the competent authorities of the respective country and by lawyers, notaries and tax advisors licensed there. For the tax consequences of relocating from Germany or Austria, tax advisors licensed in those countries are responsible. All information without guarantee. Status: July 2026. For an individual assessment: contact@goglobal.associates.
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