Can a foreigner set up a company in Bulgaria?

Companies and taxes · Last reviewed: 2026-08-23

Where EU and non-EU founders actually differ

For incorporation itself the difference is smaller than people assume: both can own and manage. The difference appears around the company. An EU national relies on the Union's freedom of establishment and registers to live and work without a separate permit. For a third-country national, living in Bulgaria is a distinct legal question governed by the Foreigners Act. The company is open to both; residence is not.

A second difference surfaces in specific classes of property, notably agricultural land, where membership and reciprocity rules apply. If your plan involves acquiring land through the company, ask about that separately and in advance — the ease of incorporation is misleading here.

The document chain is the real work

1. 1

   Evidence identity

   An individual founder is identified by passport. If the founder is a foreign company, a current registry document evidencing its existence and who may represent it is required.
2. 2

   Obtain the apostille or consular certification

   Official documents drawn up abroad pass through an apostille or the equivalent certification route. The apostille is issued in the country of origin, not in Bulgaria.
3. 3

   Commission a sworn translation

   Documents are translated into Bulgarian through the recognised procedure. Name spellings must match the passport letter for letter.
4. 4

   Grant a power of attorney if needed

   If someone else will run the procedure, the power of attorney must be broad and explicit: which acts, before which authorities, before which banks. A narrow instrument is a very common cause of delay.

Tax: the company's residence and the owner's are separate

This is the most frequent confusion. A company registered in Bulgaria is a Bulgarian taxpayer and pays corporate income tax at 10 per cent under Article 20 of the Corporate Income Tax Act, while distributed dividends carry a 5 per cent withholding under Article 194. Both rates were read on 23 August 2026. The owner's own position is a different question. According to the National Revenue Agency, an individual present in Bulgaria for more than 183 days in any twelve-month period is a resident individual; the days of entry and exit both count, and stays solely for education or medical treatment are excluded. A permanent address and the centre of vital interests are separate tests in their own right.

In practice this means incorporating in Bulgaria does not make you a Bulgarian tax resident by itself. A founder who continues to live elsewhere may well remain resident there, and the applicable double taxation treaty decides which income is taxed where. Answering that question before incorporation costs a fraction of what it costs to repair afterwards.

Where practice gets sticky

Frequently asked questions

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