European Union
Bulgaria may be a small country, but it offers big opportunities. It’s one of the most attractive business destinations within the European Union, with a stable economic environment, EU and Schengen membership, and a very competitive tax system. Add to that its strategic location between Europe and Asia, and you have a key hub for trade and logistics.
Schengen
Since the beginning of 2025, Bulgaria has become a full Schengen member, which means free travel across the bloc without border checks. That reduces bureaucracy and makes both business and tourism flows much smoother.
Eurozone
And from January 1, 2026, the euro will officially become the national currency, bringing even more financial stability and cutting transaction costs for cross-border trade.
Low Taxes – Bulgaria’s Biggest Advantage
One of the strongest arguments in favor of Bulgaria is its tax system. Corporate tax is only 10% – one of the lowest rates in Europe – allowing companies to reinvest more of their profits into growth.
Personal income tax is also a flat 10%. There are no progressive brackets, which makes planning simple and transparent. Dividends are taxed at just 5%, meaning company owners keep more of what they earn compared to many other countries.
VAT stands at 20%, with a reduced rate of 9% for some services. Registration becomes mandatory once your turnover exceeds 100,000 BGN, which gives start-ups some breathing room in their early days.
VAT and Cross-Border Trade
Bulgaria’s VAT regime is particularly attractive for businesses trading internationally. For exports outside the EU, VAT is zero-rated as long as customs documents are provided. For imports, VAT is usually charged at the border but can be reclaimed as tax credit.
Even better, Bulgaria allows a “postponed VAT payment” regime on imports: companies don’t need to pay VAT immediately at customs but can self-account for it and claim the deduction in their monthly VAT return. This is a huge relief for businesses handling high volumes or operating in global supply chains.
When it comes to intra-EU trade, supplies are also zero-rated, but strict conditions apply – such as valid VAT numbers, proof of transport, and correct VIES declarations. Mistakes in documentation can result in additional VAT charges. That’s why proper guidance is essential to avoid pitfalls and make the most of the 0% VAT rules.
Flexible Corporate Structures
Another exciting development is the introduction of companies with variable capital. This makes setting up a business even easier – there’s no need for a blocked bank account or minimum capital at registration. Capital can be increased or reduced as the business grows, making this model very attractive for foreign investors who want flexibility and a fast start.
How We Can Help
Starting a business in a foreign country can feel overwhelming. That’s where we step in. Our team of experienced lawyers and accountants has walked this road many times and knows every detail of the local system.
We assist with company formation, prepare the documents, and handle the registration process. We advise on the best legal structure – whether that’s an LLC, joint-stock company, or variable capital entity.
We also take care of ongoing accounting and compliance: bookkeeping, tax returns, deadlines, and reporting – so your business stays in line with local laws.
Our services go beyond routine accounting. We provide tax planning, cost optimization, and advice on using available legal incentives. We also handle complex issues like VAT in EU trade, exports, transfer pricing, and representation during audits by the tax authorities.
Why Bulgaria, and Why Us?
Bulgaria offers stability, low taxes, and access to European markets. But just as important is having a reliable partner who understands the business landscape. That’s where we come in – combining legal and financial expertise to give you confidence and peace of mind.
We work transparently and professionally. We speak the language of business. And we bring together legal and accounting knowledge to help foreign companies succeed.
With us, you’ll know your company is compliant, protected, and moving in the right direction.
Bulgaria has some of the lowest taxes in Europe, making it an excellent choice for investors. To fully benefit from these advantages, you need a trusted local partner. We’re ready to be that partner and help you start, grow, and succeed in Bulgaria – smoothly, legally, and profitably.
