Sofia
common.homecommon.jurisdictionsBulgaria
Bulgaria
BG
Sofia

Bulgaria

Bulgaria is an EU member state offering the lowest corporate income tax rate in the European Union, a stable currency peg, and a strong base for regional shared-service operations. The country combines a competitive cost base with an educated, multilingual workforce.

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jurisdiction.corporateIncomeTax

10%

jurisdiction.valueAddedTax

20% (9% reduced)

jurisdiction.keyFeatures

  • Flat 10% corporate income tax rate — lowest in the EU
  • Flat 10% personal income tax rate
  • Participation exemption for qualifying EU/EEA dividends
  • Tax incentives in designated regions with high unemployment
  • Loss carry-forward for 5 years

jurisdiction.treatyNetwork Bulgaria has an extensive double tax treaty network covering more than 70 countries, including all major EU economies, the United States, and key Asian markets.

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jurisdiction.employment

Bulgarian labor law is harmonized with EU standards and offers one of the most competitive cost bases in the EU, with a strong pool of multilingual professionals in IT, finance, and shared services.

jurisdiction.socialContributions Total employer social and health contributions approximately 18.92-19.62% of gross salary; employee contributions around 13.78%, capped at the monthly maximum insurable income.

jurisdiction.keyRequirements

  • Written employment contracts mandatory and registered with NRA
  • National minimum wage set annually by government
  • Standard working week of 40 hours
  • Minimum 20 working days annual leave
  • Notice and severance defined by Labor Code

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jurisdiction.companyFormation

jurisdiction.entityTypes

  • OOD/EOOD (Limited Liability Company)
  • AD (Joint Stock Company)
  • Branch Office
  • Representative Office

jurisdiction.typicalTimeline

1-2 weeks

jurisdiction.capitalRequirements

OOD/EOOD: BGN 2 minimum share capital; AD: BGN 50,000 minimum share capital.

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jurisdiction.regulatoryEnvironment

jurisdiction.keyRegulators

  • NRA (National Revenue Agency)
  • Commercial Register
  • FSC (Financial Supervision Commission)
  • BNB (Bulgarian National Bank)

jurisdiction.complianceNotes

  • Full EU regulatory compliance
  • SAF-T reporting being phased in for taxpayers
  • Transfer pricing documentation required
  • GDPR and EU directive compliance

jurisdiction.localExpertise

jurisdiction.ourPresenceIn Bulgaria

We support clients in Bulgaria through our regional network and trusted local partners, delivering coordinated tax, accounting, and advisory services aligned with our core jurisdictions.

jurisdiction.otherJurisdictions

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jurisdiction.ctaTitlePrefix Bulgaria jurisdiction.ctaTitleSuffix

jurisdiction.ctaDescPrefix Bulgaria.

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