Company Setup & Structuring

Bulgarian Company Setup Overview

DriehuisGroup supports entrepreneurs, investors and companies that need a Bulgarian company structure put in place properly from the beginning. For serious clients, incorporation is not just a registration exercise. It is a decision about ownership, tax position, trading readiness, banking, accounting, VAT exposure and how the business will operate across borders.

On this page
Company types
VAT rules
EU trading benefits
Tax rates
Tax example

Company Types We Commonly Set Up

Non-active EOOD

A non-active EOOD can be an excellent low-cost EU holding vehicle when the goal is to own assets cleanly inside a Bulgarian limited company before wider operations begin. This can be appropriate for holding cars, boats, aircraft, real estate, intellectual property, royalty-generating assets, licences and other investment assets where ownership, control and future use need to be structured properly.

It is especially useful for clients who want the legal entity established first, while commercial activity, invoicing, staffing or broader trading are introduced later. In the right case, this gives the founder a practical European holding structure without forcing the company into full operating mode immediately.

Active EOOD

Best for a sole owner who intends to begin trading, invoicing, contracting or building local operations immediately. This is the stronger route when the company is being formed for real business activity from the outset rather than simply being held in reserve.

OOD

The Bulgarian multi-owner limited liability company. This is the right structure when there are two or more shareholders, when ownership percentages need to be allocated properly, or when a project, family office or investment structure requires multiple parties in the company from day one.

VAT-registered company

Appropriate when the business expects to cross the registration threshold, trade across EU borders, recover input VAT on eligible costs, or present itself to suppliers and customers as a fully operational VAT-registered entity from an early stage.

VAT Rules and Registration

Mandatory VAT registration threshold
According to the Bulgarian National Revenue Agency, mandatory VAT registration applies once taxable turnover reaches EUR 51,130 or more over a period not longer than the last 12 consecutive months. Following Bulgaria’s adoption of the euro on 1 January 2026, the NRA now refers to the domestic threshold in euro terms for locally established taxable persons.

Voluntary VAT registration
A company can also register earlier when that makes commercial sense. This is often useful for businesses that plan to trade across the EU, work with VAT-registered counterparties, or recover input VAT on eligible business expenses.

Why VAT Registration Helps With EU Trade

When a Bulgarian VAT-registered company buys goods for business purposes from another EU Member State, the supplier generally does not charge its local VAT if the transaction qualifies as a cross-border B2B supply and the Bulgarian buyer provides a valid EU VAT number. The Bulgarian company then accounts for the acquisition under Bulgarian VAT rules. In practice, this helps serious businesses reduce foreign VAT friction and operate more cleanly with suppliers across the EU.

Tax Rates in Bulgaria

Corporate income tax: 10%
Standard VAT rate: 20%
Dividend tax: 5%

Simple Tax Example

If a Bulgarian company has EUR 100,000 of taxable profit, corporate tax at 10% would be EUR 10,000. That leaves EUR 90,000 after corporate tax. If the full amount is then distributed as dividends, dividend tax at 5% would be EUR 4,500, leaving EUR 85,500 net to the owner.

This is a simplified example and does not include salary, social security, treaty relief, accounting adjustments, deductible expense issues or sector-specific tax treatment. For serious cases, the correct structure should be assessed before incorporation rather than after the company is already operating.

What We Handle

EOOD and OOD company incorporation
Founder and ownership structuring
Registered address and corporate documentation
Accounting and bookkeeping setup
VAT registration planning and filing support
Banking introductions and opening support
Operational launch coordination

Open your Bulgarian limited online

Professional Scope

DriehuisGroup coordinates commercial, operational, and administrative execution. Legal, tax, accounting, immigration, customs, and regulated advisory work is handled by appropriately qualified professionals where required.