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.
We cover the details — process, documents, bank account — in two dedicated articles: the Guide to Registering a Bulgarian EOOD Company and the overview of documents required for company registration.
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 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. If you are planning the move to Bulgaria, talk to us — we will tell you honestly what the relocation achieves in tax terms, what it requires, and what the timeline looks like.