--- title: "Relocating to Bulgaria and Starting a Company" url: https://consultax-varna.com/2026/09/01/relocating-to-bulgaria-and-starting-a-company/ language: en dateModified: 2026-10-23 --- # Relocating to Bulgaria and Starting a Company 01 Sept 2026· Updated 23 Oct 2026 By [ConsulTax](https://consultax-varna.com/about-us/) More and more entrepreneurs from Germany, Austria and beyond are moving their lives to Bulgaria — and founding their companies here. The reasons are concrete: the lowest tax rates in the European Union, a company formation finished in days rather than weeks, the euro as the national currency since 1 January 2026, and living costs well below Western European levels. This guide walks the entire road — from the decision through residence to the day-to-day accounting — the way it works legally and cleanly: as a genuine relocation. ## Why Bulgaria: the taxes in numbers Bulgaria taxes simply and flatly — no progressive brackets, no special tariffs: - **Corporate tax: 10%** on company profit — one of the lowest rates in the EU. - **Withholding tax on dividends: 5%** when the company distributes profit to you. - **Personal income tax: a flat 10%** on personal income, such as your manager’s salary. - **VAT: 20%** standard rate (9% reduced for certain categories); registration only becomes mandatory once taxable turnover reaches EUR 51,130 within a calendar year. A worked example: on EUR 100,000 of profit, your Bulgarian company pays EUR 10,000 in corporate tax. Distribute the remaining EUR 90,000 as a dividend and another EUR 4,500 is withheld. Total burden: **14.5%**. For comparison, the combined German burden of corporate tax, trade tax and capital gains tax typically lands well above 40%. ## The principle: the move is part of the plan One point before everything else, because it decides everything else: **these tax rates are for people who actually live in Bulgaria and run their business from here.** Staying in Germany and merely registering a Bulgarian company achieves nothing — under German tax law, a company effectively managed from Germany remains taxable there, and the double-taxation treaty between Germany and Bulgaria addresses exactly these cases. The serious route is therefore the complete one: you move your center of life to Bulgaria, register your residence here, run your firm from here, and in time become a Bulgarian tax resident. That is not a loophole — it is the EU’s freedom of establishment, used as intended — and it is the only version that survives a tax audit. Before leaving, also talk to a tax adviser in your home country, particularly about topics like Germany’s exit taxation on existing shareholdings. ## Step 1: Register your residence As an EU citizen you need neither a visa nor a work permit. For a stay beyond three months, you apply for a registration certificate at the migration office of your place of residence; with it you receive your Bulgarian personal number, which you will need for tax and insurance purposes. Non-EU nationals go through additional steps for residence permits — company formation itself is equally open to them. In practice this means: a rental contract or property purchase as a provable address, the registration, and everything else builds on that. ## Step 2: Form the company — usually an EOOD By far the most popular legal form for solo founders is the **EOOD**, Bulgaria’s single-member limited liability company: - **Minimum capital: 1 euro.** - Liability limited to the company’s assets — your personal wealth stays protected. - Formation runs through notary certification and entry in the Commercial Register; with complete documents, registration typically takes a few days to about a week. - You will need a registered office in Bulgaria, articles of association and a bank account for the capital deposit. The steps, every fee and a realistic timeline are in **[Company Formation in Bulgaria 2026: Steps, Cost, Timeline](https://consultax-varna.com/2025/02/11/guide-to-registering-a-bulgarian-eood-company/)**, and the full document list is in **[documents required for company registration](https://consultax-varna.com/2025/02/15/company-registration-bulgaria-documents/)**. ## Step 3: Taxes and social security in daily life After formation, routine takes over — and it is manageable when set up correctly from the start: - **Corporate tax:** annual return and payment by 30 June of the following year; above a turnover threshold, advance instalments during the year. - **VAT:** once registered, monthly returns by the 14th of the following month — Bulgaria has no quarterly VAT returns. - **Salaries:** payroll tax (a flat 10%) and social security contributions are remitted monthly by the 25th of the following month. - **Social security for yourself:** as a managing owner you generally self-insure; contributions are calculated on a chosen base between the statutory minimum and maximum. This covers health and pension insurance in the Bulgarian system. What companies in Bulgaria pay in detail is summarised in **[Taxes in Bulgaria 2026](https://consultax-varna.com/2025/02/07/tax-obligations-for-companies-in-bulgaria/)**. ## Step 4: Settling in — bank, euro, everyday life Since 1 January 2026 the euro is Bulgaria’s currency — currency risk and conversion between your old life and your new one are gone entirely. You open a business account with a Bulgarian bank as part of the formation; many banks offer English-language online banking. Varna and Sofia have growing international communities, and English takes you far in daily life — but for authorities, contracts and accounting you need reliable partners on the ground. ## How we help Consultax has guided founders from abroad for years — from the first consultation through EOOD formation to ongoing accounting, payroll and annual closings, in German and English. What that covers in detail is on **[German-Speaking Accountant in Bulgaria](https://consultax-varna.com/german-speaking-accountant-bulgaria/)**. If you are planning the move to Bulgaria, **[talk to us](https://consultax-varna.com/contacts/)** — we will tell you honestly what the relocation achieves in tax terms, what it requires, and what the timeline looks like. ## How we can help - [Company registration](https://consultax-varna.com/company-registration/) - [Consulting Services](https://consultax-varna.com/consulting-services/)