Why Bulgaria

Bulgaria offers some of the lowest corporate tax rates in the EU along with a strategic location, a skilled workforce, and straightforward access to European markets. It’s an ideal destination for entrepreneurs and investors looking to grow their business in Europe without the high overhead costs.

What We Do

We guide foreign investors through every step of company formation in Bulgaria. From preparing documentation and handling registration procedures to obtaining permits and managing legalizations, our team takes care of everything — so you can focus on running your business, not navigating bureaucracy.

Our services include:

•  Company registration — new formations or ready-made companies
•  Full documentation handling — all paperwork prepared and submitted on your behalf
•  Accounting services — professional bookkeeping and financial reporting
•  Legal consultations — expert advice tailored to your business needs
•  Flexible packages — choose individual services or save more with our all-inclusive bundles

A Team You Can Trust

Our dedicated team of professionals brings years of hands-on experience in Bulgarian business law, accounting, and corporate services. We’ve helped clients from across the globe successfully launch and grow their businesses in Bulgaria — and we’re ready to do the same for you.
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With just one click, you can take the first step toward building your business in Bulgaria. Contact us now and let’s turn your vision into reality.

Corporate flat tax rate of just 10%

Why Bulgaria? A Smart Choice for Foreign Investors

Bulgaria stands out as one of Europe’s most attractive business destinations, offering a combination of low taxes, financial stability, and a highly skilled workforce — all within the European Union.

• One of the Lowest Corporate Tax Rates in the EU
  The Bulgarian tax system is designed to be investor-friendly. The flat corporate income tax rate is 10%, among the lowest in the European Union, while the withholding tax on dividends is only 5%.
• Extensive Double Taxation Network
  Bulgaria has Double Taxation Treaties with over 71 countries worldwide, helping businesses avoid double taxation and optimize their international tax planning.
• Fully Aligned with EU Legislation
  Bulgarian commercial and tax legislation is largely harmonized with EU law, providing a familiar and reliable legal framework for European and international companies.
• Stable and Modern Banking Environment
  Bulgaria’s banking sector is well-capitalized and includes subsidiaries of major European banking groups. As of now, the official currency of Bulgaria is the euro (EUR), further enhancing financial transparency, simplifying cross-border transactions, and supporting seamless e-banking operations.
• Competitive Labor Market with Skilled Workforce
  Bulgaria offers some of the most competitive labor costs in the EU while maintaining a highly educated, multilingual workforce. Salaries are typically agreed on a gross monthly basis, providing clarity and predictability for employers.
• Low Operating and Living Costs
  The country maintains relatively low inflation, affordable office and residential rents, and attractive real estate prices, ensuring excellent overall value for businesses establishing local operations.

Simple Company Formation
Setting up a company in Bulgaria is straightforward. All Bulgarian companies are subject to a flat 10% corporate tax rate. Requirements include a registered local tax address and local accounting services — both of which New Business Solutions can fully arrange on your behalf.

Tax on dividends just 5%

Dividend Tax in Bulgaria — One of the Lowest Rates in the EU

Bulgaria offers one of the most competitive dividend tax regimes in the European Union, making it a top destination for foreign investors and business owners looking to maximize their returns and retain more of what they earn.

What Is the Dividend Withholding Tax in Bulgaria?

When a company distributes profits to its shareholders, the dividend payment is subject to a withholding tax. In Bulgaria, this rate is just 5% — significantly lower than the EU average, which typically ranges between 15% and 30% depending on the country.

How Does Bulgaria Compare to Other EU Countries?

The contrast between Bulgaria and other EU member states is striking and speaks for itself. While Germany applies a dividend withholding tax of 25%, France reaches as high as 30%, and Sweden follows with the same 30% rate, Bulgaria stands firm at just 5%. Spain taxes dividends at between 19% and 28% depending on the amount, Italy applies 26%, Austria 27.5%, and even the Netherlands — long considered a favorable jurisdiction — charges 15%. Romania, one of Bulgaria’s closest regional competitors, recently increased its dividend tax to 8%, making Bulgaria’s rate even more attractive by comparison.
This is not a marginal difference. For business owners and investors who regularly distribute profits, the gap between Bulgaria’s 5% and the rates applied across most of Western Europe represents a decisive financial advantage — one that compounds significantly as your business grows and profits increase.

The Real Business Advantage — Keep More of Your Profits

For business owners, the dividend tax rate directly impacts how much money you actually take home after your company has already paid corporate tax. In Bulgaria, the combined tax burden is exceptionally low. With a flat 10% corporate tax on company profits and just 5% dividend tax on distributed profits, the overall effective tax rate remains among the lowest available within a fully EU-compliant framework.

Who Does It Apply To?

The 5% withholding tax on dividends applies to both resident and non-resident individuals receiving dividends from Bulgarian companies. For dividends distributed to legal entities registered within the EU or the European Economic Area (EEA), the rate may be reduced to 0% under specific conditions outlined in Bulgarian tax law and the EU Parent-Subsidiary Directive.

Double Taxation Protection

Bulgaria has signed Double Taxation Treaties with over 71 countries worldwide. This means that in most cases, investors can avoid being taxed twice on the same dividend income — once in Bulgaria and again in their country of residence. Depending on the applicable treaty, the withholding tax rate on dividends may be further reduced even below 5%, making Bulgaria an even more efficient base for international investors.

Bulgaria as a Holding Company Jurisdiction

Bulgaria is increasingly recognized as one of the most attractive holding company jurisdictions within the EU. Dividends received by a Bulgarian holding company from EU subsidiaries are generally exempt from corporate tax under the EU Parent-Subsidiary Directive, making Bulgaria an ideal hub for international business groups looking to consolidate profits efficiently and legally — without routing through more expensive or complex jurisdictions like Luxembourg or the Netherlands.
Combined with low operational costs, a stable and well-developed banking system, the Euro as the official national currency, and full EU membership, Bulgaria offers a rare combination of tax efficiency and business credibility that few jurisdictions within Europe can match.

Why More Businesses Are Choosing Bulgaria

Beyond the numbers, Bulgaria offers a broader set of advantages that make it a genuinely superior choice for company structuring and profit distribution. Full EU membership means your company operates under recognized European legal frameworks, giving clients and partners confidence. The flat 10% corporate tax is simple and predictable — with no complex progressive brackets. The 5% dividend tax ensures shareholders are rewarded efficiently. The cost of running a business, from salaries to office space, remains the lowest in the EU. And with the Euro as the official national currency, there is no exchange rate risk for businesses operating across Europe.
For entrepreneurs, investors, and international business groups alike, Bulgaria represents the optimal balance between tax efficiency, legal stability, and operational affordability — all within the security of the European Union.

Plan Your Dividend Strategy with Confidence

Understanding how dividend taxation works in Bulgaria can unlock significant financial advantages for your business. At New Business Solutions, our team of tax and legal professionals is ready to help you structure your company and dividend policy in the most tax-efficient and fully compliant way possible.
Contact us today for a free consultation and find out how Bulgaria’s favorable tax environment can work for your business — and your bottom line.

Bulgaria avoids double taxation

Double Taxation Avoidance in Bulgaria

Bulgaria offers an efficient and internationally recognized framework for the avoidance of double taxation, making it an attractive jurisdiction for cross-border business, holding structures, and international investors.

Extensive Treaty Network

Bulgaria has concluded Double Taxation Treaties (DTTs) with more than 70 countries worldwide. These agreements are designed to ensure that income is not taxed twice in two different jurisdictions and to provide clarity and certainty for international business operations.

The treaty network covers most major economies in:

• The European Union
• The United Kingdom
• The United States
• Switzerland
• The Middle East
• Asia and other key global markets

Key Benefits for International Businesses

Reduced Withholding Taxes

Under many treaties, withholding taxes on dividends, interest, and royalties can be reduced or eliminated, significantly improving the tax efficiency of cross-border payments.

Prevention of Double Taxation

Income earned abroad by Bulgarian companies—or Bulgarian-source income earned by foreign investors—can benefit from tax credits or exemptions under applicable treaties.

Improved Cash Flow

Lower withholding rates and tax credits help businesses retain more profits and improve overall cash flow.

Greater Legal Certainty

Treaties provide clear allocation of taxing rights between countries, reducing the risk of disputes and unexpected tax exposure.

Support for Holding and Investment Structures

Bulgaria’s treaty network, combined with its low corporate (10%) and dividend (5%) tax rates, makes the country particularly suitable for:

• EU and international holding companies
• Investment vehicles
• Trading companies
• IP and royalty structures

EU Directive Advantages

As an EU Member State, Bulgaria applies key European tax directives, including:

• Parent–Subsidiary Directive
• Interest and Royalties Directive

These rules may allow 0% withholding tax on qualifying intra-EU payments when the relevant conditions are met, further enhancing tax efficiency within the European Union.

How the Double Tax Relief Works

Depending on the applicable treaty, relief from double taxation is typically provided through:

• Tax credit method – foreign tax paid is credited against Bulgarian tax
• Exemption method – certain foreign-source income may be exempt in Bulgaria
• Reduced treaty withholding rates – applied at source

Proper structuring and documentation are essential to access treaty benefits.
Compliance and Substance
To benefit from Bulgaria’s double tax treaty network, companies must generally ensure:
• Valid tax residency
• Proper corporate substance where required
• Accurate documentation (including tax residency certificates)
• Correct withholding tax procedures
Professional tax and accounting support is strongly recommended to ensure full compliance and optimal structuring.
Why Choose Bulgaria
With its broad treaty network, low flat tax regime, EU-aligned legislation, and official euro currency (EUR), Bulgaria stands out as a strategic jurisdiction for international tax planning and cross-border business operations.
Need assistance with treaty structuring or company setup in Bulgaria?
Our team provides end-to-end support to help you maximize treaty benefits while staying fully compliant.

The country offers highly qualified, multilingual employees

Access Europe’s Most Talented and Cost-Effective Workforce — Right Here in Bulgaria

Bulgaria stands out as one of the most compelling destinations in the European Union for businesses seeking highly qualified, multilingual talent at genuinely competitive costs. With a strong tradition of technical and academic education, Bulgaria produces a steady stream of skilled professionals across IT, engineering, finance, law, accounting, multilingual customer support, and many other sectors — all at labor costs that remain the lowest in the EU.

A Workforce Built for International Business

Bulgarian professionals are widely recognized across Europe for their strong work ethic, adaptability, and multilingual capabilities. English is spoken to a high standard across the business community, with German, French, Spanish, Russian, and other languages also widely represented — making Bulgaria an ideal base for companies serving international markets or managing cross-border operations.

Hiring EU Citizens in Bulgaria — A Straightforward Process

One of the practical advantages of Bulgaria’s EU membership is the freedom of movement it provides. Citizens of any EU or EEA member state have the right to live and work in Bulgaria without the need for work permits or visas. The administrative process for employing EU nationals is streamlined and straightforward, requiring standard employment documentation and registration with the relevant Bulgarian authorities.

Upon taking up residence in Bulgaria, EU citizens are issued a Temporary EU Residence Card — an official document confirming their right to reside and work in the country. This card serves as the primary identification document for EU nationals living in Bulgaria and is required for opening bank accounts, signing employment contracts, and accessing public services. The process of obtaining this card is simple and fast, typically completed within a few weeks.

At New Business Solutions, we assist both employers and employees in preparing and managing all necessary documentation for EU citizens — from employment contracts and registration procedures to obtaining the Temporary EU Residence Card — ensuring full legal compliance and a smooth, hassle-free process from day one.

Hiring Non-EU Nationals — Visa D, Work Permits, and Beyond

For businesses wishing to bring talent from outside the European Union, Bulgaria offers a clearly defined and well-regulated procedure for obtaining the necessary documentation. The process typically begins with the Long-Stay Visa — Type D (Visa D), which is the entry visa required for non-EU nationals intending to reside and work in Bulgaria for an extended period. Visa D is issued by Bulgarian diplomatic missions abroad and is a prerequisite for obtaining a residence and work permit once the employee arrives in the country.

Following entry on a Visa D, the employee must obtain a Work Permit issued by the Bulgarian Employment Agency, which formally authorizes the individual to take up employment with a specific employer in Bulgaria. In parallel, a Residence Permit — either temporary or permanent depending on the circumstances — must be obtained from the Migration Directorate of the Bulgarian Ministry of Interior. For most non-EU employees, the initial permit is granted as a Temporary Residence and Work Permit, which is typically issued for a period of one year and renewable thereafter.

For highly skilled non-EU professionals, Bulgaria also provides access to the EU Blue Card — a residence and work permit specifically designed to attract highly qualified workers from outside the EU. The Blue Card offers additional benefits including accelerated processing, greater mobility across EU member states, and a clear pathway toward long-term residence.

It is important to note that the Work Permit must be obtained before the employee begins work, and the employer carries legal responsibility for initiating and completing the permit process in compliance with Bulgarian labor and immigration law. Failure to follow the correct procedures can result in significant administrative penalties.

We Handle the Entire Process for You

Navigating Visa D applications, work permit procedures, residence registrations, and Temporary EU Residence Cards can be time-consuming and complex — particularly for businesses managing these processes for the first time or for multiple employees simultaneously. At New Business Solutions, our experienced team manages every aspect of the employment documentation and immigration process on your behalf.

From preparing and submitting Visa D supporting documentation and work permit applications to coordinating with Bulgarian authorities and ensuring all deadlines and legal requirements are met, we provide end-to-end support for both EU and non-EU hires. Our goal is simple — to make building your team in Bulgaria as smooth and efficient as possible, so you can focus on growing your business.

The Bottom Line

Bulgaria gives your business access to a talented, educated, and cost-competitive workforce within a fully EU-compliant legal framework. Whether you are hiring locally, relocating EU professionals with a Temporary EU Residence Card, or bringing in specialists from outside Europe through the Visa D and work permit process, New Business Solutions is your trusted partner for every step of the employment and documentation journey.

Contact us today and let us help you build the team your business deserves — without the paperwork headache.

One of the most stable bank systems

Stable and Business-Friendly Banking in Bulgaria

Bulgaria offers a secure and well-regulated banking environment, supported by strong supervision and the presence of major European banking groups. The sector is well-capitalized, stable, and fully aligned with EU financial regulations, providing businesses with confidence and reliability.

With the euro (EUR) as the official currency, companies benefit from seamless cross-border transactions, reduced currency risk, and simplified financial operations within the European market.

Opening and managing corporate and personal bank accounts in Bulgaria is straightforward and efficient. Banks provide:

• Modern online and e-banking platforms
• Multi-currency accounts
• International transfers (SEPA & SWIFT)
• Competitive banking fees
• Dedicated corporate relationship managers

We Help You Open Your Bank Account — Personal and Corporate

For foreign nationals and international investors, navigating the bank account opening process in a new country can be challenging. At New Business Solutions, we provide full assistance with both corporate and personal bank account opening in Bulgaria. Our team guides clients through the entire process — from selecting the most suitable bank for their specific needs to preparing and completing all required documentation.

We provide dedicated support with KYC (Know Your Customer) requirements, which are mandatory for all new banking clients in Bulgaria. KYC procedures involve verifying the identity of the account holder, confirming the source of funds, and providing documentation about the nature of the business. For foreign clients unfamiliar with Bulgarian banking requirements, these procedures can be complex and time-consuming. Our team ensures that all KYC documentation is correctly prepared and presented, significantly reducing the risk of delays or rejections and making the entire process smooth and straightforward.

Whether you need a corporate account for your newly registered Bulgarian company or a personal account as a foreign resident, we are here to make it happen efficiently and without unnecessary complications.The combination of financial stability, digital accessibility, and EU compliance makes Bulgaria an excellent jurisdiction for both local operations and international business structures.

A Sector Built on Solid Foundations

The Bulgarian banking system operates under the supervision of the Bulgarian National Bank (BNB) and is fully aligned with European Central Bank regulations and EU banking directives. With consistently high capital adequacy ratios and a strong track record of stability even during periods of global financial turbulence, Bulgarian banks inspire confidence among both local and international business clients. All major European banking groups are represented in Bulgaria, including UniCredit, Société Générale, OTP, and others — bringing internationally recognized standards of service and financial products tailored to business needs.

The Euro Advantage

With the Euro as Bulgaria’s official national currency, businesses benefit from the complete elimination of exchange rate risk when transacting across the eurozone. Payments to suppliers, receipts from clients, and dividend distributions across EU borders are all conducted in Euro — simplifying accounting and bringing Bulgaria fully in line with the financial infrastructure of Western Europe.

Your Business Deserves a Strong Banking Partner

A stable, modern, and accessible banking system is a fundamental pillar of successful business operations in Bulgaria. Combined with the Euro as the national currency, EU regulatory oversight, and one of the most competitive cost environments in Europe, Bulgaria’s banking infrastructure gives your business everything it needs to operate with confidence.

Why Work With Us — Your Trusted Partner for Business in Bulgaria

Building a successful business in a new country requires more than just a good idea — it requires the right partner on the ground. At New Business Solutions, we bring together deep local expertise, international perspective, and a full suite of professional services designed to make your journey into the Bulgarian market as smooth, efficient, and rewarding as possible.

We Handle Everything — So You Can Focus on What Matters

From the moment you decide to establish your presence in Bulgaria, we take the administrative burden entirely off your shoulders. Company registration, legal documentation, government procedures, banking support, KYC assistance, work permit applications — our experienced team manages every step of the process professionally and efficiently, so your time and energy remain focused where they belong: on growing your business.

Accounting and Compliance You Can Rely On

We provide comprehensive accounting and bookkeeping services fully compliant with Bulgarian and EU regulations. Our team stays ahead of legislative changes, monitors your compliance obligations, and keeps your finances organized and transparent at all times — giving you the confidence that your business is always on solid legal and financial ground.

A Partner Invested in Your Long-Term Success

We are not simply a service provider — we are a long-term partner genuinely committed to your success. Whatever stage your business is at, we are here with the right expertise, the right support, and the right solutions.

EU law implemented

EU Law in Bulgaria — Legal Certainty and Full Regulatory Alignment for Your Business

Bulgaria’s full membership in the European Union means that EU law is directly implemented across the Bulgarian legal system, providing foreign investors and international businesses with a familiar, transparent, and internationally recognized regulatory framework from day one.

A Legal System You Can Trust

Since joining the EU in 2007, Bulgaria has systematically transposed European legislation into its national legal framework. Company law, contract law, consumer protection, data privacy under GDPR, employment regulations, intellectual property rights, financial services regulation, and competition law all operate in full alignment with EU standards. For foreign investors, this means there is no need to navigate an unfamiliar or unpredictable legal environment — the rules governing your business in Bulgaria are fundamentally the same rules that apply across the European Union.

What This Means in Practice for Your Business

Operating under EU-aligned law delivers concrete, everyday advantages. Contracts are enforceable under frameworks consistent with European standards, making cross-border commercial relationships straightforward and legally secure. Intellectual property registered in Bulgaria benefits from EU-wide protection. Data handling and privacy obligations follow GDPR, which is already familiar to most international businesses. Employment contracts, dispute resolution, and corporate governance all follow EU-derived principles — reducing legal risk and compliance complexity significantly.
For businesses coming from outside the EU, establishing a company in Bulgaria effectively means establishing a presence within the full EU legal framework — gaining access to the Single Market, EU regulatory passporting in certain sectors, and the legal credibility that comes with operating in a fully regulated European jurisdiction.

Legal Security That Supports Long-Term Investment

One of the key concerns for any foreign investor entering a new market is legal predictability. Bulgaria’s alignment with EU law provides precisely that. Regulatory changes must comply with European directives, judicial processes follow EU principles, and investors benefit from the same fundamental rights and protections available across all EU member states. This creates a stable and secure foundation for long-term business planning and investment.

We Help You Navigate the Legal Landscape

Understanding how EU law applies within the specific context of Bulgarian business regulation requires local expertise. At New Business Solutions, our legal team provides professional guidance on all aspects of Bulgarian and EU business law — from company formation and contract drafting to regulatory compliance and dispute resolution.

Contact us today and let us ensure your business in Bulgaria is built on a solid, fully compliant legal foundation.

Tax recidence in Bulgaria

Tax Residency in Bulgaria — A Smart Choice for Individuals and Entrepreneurs

Bulgaria offers one of the most attractive personal tax residency frameworks in the European Union — combining exceptionally low tax rates, a straightforward residency process, and a high quality of life at a fraction of the cost of Western Europe. For entrepreneurs, freelancers, and investors looking to optimize their personal tax position within a fully EU-compliant environment, Bulgarian tax residency is an option that deserves serious consideration.

The Key Tax Advantages

Bulgaria applies a flat 10% personal income tax rate on all taxable income — one of the lowest in the EU and dramatically lower than the progressive rates applied across most of Western Europe, where personal income tax can reach 45% to 55% for higher earners. Bulgaria also does not levy wealth tax, inheritance tax between close family members is minimal, and Bulgarian company shareholders benefit from a 5% dividend withholding tax — creating an exceptionally efficient overall personal and corporate tax position.

Conditions for Obtaining Bulgarian Tax Residency

Under Bulgarian tax law, an individual qualifies as a tax resident if they meet one or more of the following conditions: they maintain a permanent registered address in Bulgaria, they spend more than 183 days per year in the country, or their center of vital interests — primary personal, family, and economic ties — is located in Bulgaria.

For most individuals, the most practical route is establishing a registered address in Bulgaria combined with genuine economic ties such as operating a Bulgarian company or maintaining a Bulgarian bank account. It is important to note that becoming a Bulgarian tax resident typically requires formally ceasing tax residency in the previous country of residence, in accordance with the applicable Double Taxation Treaty. Professional legal advice is essential to ensure a clean and fully compliant transition.

Quality of Life — The Hidden Advantage

Beyond the tax benefits, Bulgaria offers a genuinely high quality of life at remarkably low cost. Sofia is a modern, well-connected European capital with excellent infrastructure, international schools, and a vibrant business community. The cost of living — from accommodation and dining to healthcare and services — is among the lowest in the EU, making Bulgaria an attractive base not just financially, but personally.

We Handle the Entire Process for You

At New Business Solutions, we provide full support for individuals seeking Bulgarian tax residency — from initial consultation and permanent address registration to obtaining your Bulgarian personal identification number, coordinating your exit from your current tax residency, and assisting with any related company formation or banking requirements.

Contact us today for a confidential consultation and take the first step toward a more tax-efficient life — in the heart of the European Union.

Bulgaria and the Euro

Financial Stability at the Heart of Europe

Bulgaria’s adoption of the Euro as its official national currency marks a defining milestone in the country’s economic development and European integration. For foreign investors and internationally active businesses, this is not simply a symbolic change — it is a fundamental practical advantage that directly impacts how you operate, plan, and grow your business in Bulgaria.

No More Exchange Rate Risk

For businesses transacting across the eurozone — whether paying suppliers, receiving client payments, distributing dividends, or managing intercompany transfers — the Euro eliminates currency conversion costs and exchange rate volatility entirely. What was previously a background financial risk is now simply gone, replaced by the certainty and simplicity of operating in Europe’s most widely used currency.

Deeper Integration with European Markets

Operating in Euro places Bulgarian businesses on equal footing with their counterparts across the eurozone. Cross-border transactions are faster, cheaper, and administratively simpler. Banking relationships with European institutions are more straightforward, access to European capital markets is enhanced, and the overall credibility of Bulgarian companies in the eyes of international partners, clients, and investors is significantly strengthened.

A Foundation of Economic Confidence

Euro adoption signals a mature, stable, and internationally trusted economic environment. Combined with Bulgaria’s flat 10% corporate tax, 5% dividend withholding tax, one of the lowest cost bases in the EU, and a well-regulated banking system supervised by the Bulgarian National Bank and aligned with ECB standards, the country now offers a compelling and complete package for serious international investors.

Ready to Do Business in Bulgaria?

At New Business Solutions, we help foreign investors and entrepreneurs take full advantage of everything Bulgaria has to offer — from company formation and banking to tax planning and legal compliance.

Contact us today and let us help you build your business in one of Europe’s most dynamic and investor-friendly environments.