Bulgarian EOOD for foreigners – taxes, VAT and rules in 2026
A Bulgarian EOOD is a limited company with a single owner. With 10% corporate tax and 5% tax on dividends it is one of the most tax-efficient companies in the EU – if it is run correctly. Here is what a foreign owner needs to know: taxes, how to take money out, social security, VAT and the yearly obligations.
In short. The EOOD pays 10% corporate income tax on its profit. When the profit is paid to you as a dividend, the company withholds 5%. Salaries and management fees are taxed at 10% plus social security. VAT registration is mandatory above €51,130 turnover per calendar year – and earlier for services from or to other EU countries. The company must file a corporate tax return by 30 June and publish its financial statements by 30 September every year.
What is an EOOD?
EOOD (ЕООД, ednolichno druzhestvo s ogranichena otgovornost) means a single-member limited liability company. It is owned by one person or company, which is liable only up to the capital – the minimum is €1. The company has one or more managers who represent it; the owner can be the manager. An EOOD with two or more owners becomes an OOD.
Anyone can own an EOOD, whatever their nationality and wherever they live. The company itself must have a registered address in Bulgaria. See how to register a company in Bulgaria.
Taxes of the company and the owner
| Tax | Rate | On what |
|---|---|---|
| Corporate income tax | 10% | The taxable profit of the year. Return and payment by 30 June of the following year. |
| Dividend tax | 5% | Dividends paid to individuals – Bulgarian or foreign. Withheld by the company. Dividends to companies from the EU/EEA are generally exempt. |
| Personal income tax | 10% | Salary or management fee, after social security contributions. |
| VAT | 20% / 9% / 0% | Once the company is VAT registered. 9% applies to hotel accommodation, books and some baby products; 0% to exports and intra-EU supplies. |
| Social security | 32.7% – 33.4% | On salaries: employee 13.78% + employer 18.52% and 0.4% – 1.1% for work accidents, on up to €2,300 a month. |
So on €100 of profit paid out as a dividend, the total tax is €14.50: €10 corporate tax and 5% of the remaining €90. Social security is not due on dividends.
How to take money out of the company
- Dividends – after the annual financial statements are adopted, from the profit shown in them. The company withholds 5% and pays it by the end of the month after the quarter of the decision. This is usually the cheapest way.
- Salary or management fee – an expense for the company, taxed at 10% income tax plus social security.
- Business expenses – the company can pay for what it needs for its business, with proper invoices.
Be careful with "loans" to the owner. Money taken from the company without a legal basis – for example a loan that is never repaid, or private expenses paid by the company – can be treated as a hidden distribution of profit, with additional tax and a fine. Ask us before you withdraw money.
Social security of the owner-manager
If you live and work in Bulgaria and manage your own EOOD, you usually pay Bulgarian social security as a self-insured person on a monthly base that you choose – from the minimum to the maximum insurable income:
- contributions of 27.8%, or 31.3% with sickness and maternity cover;
- minimum base €620.20 a month from 1 August 2026 (€550.66 before that) and maximum base €2,300;
- alternatively, a management contract with a monthly fee, taxed like a salary.
If you live in another EU country, the EU social security rules decide where you are insured – usually in the country where you live and work, shown with an A1 certificate. For non-EU countries it depends on the social security agreement with Bulgaria, if there is one. We check this with you at the start.
Where are you taxed personally?
You are usually a Bulgarian tax resident if you spend more than 183 days in Bulgaria in any 12 months, or if the centre of your vital interests is in Bulgaria. Bulgarian residents pay 10% income tax on their worldwide income, with credit for foreign tax under the double tax treaties.
If you live in another country, the dividends from your EOOD may also be taxed there – the 5% Bulgarian tax is usually credited. And a company that is effectively managed from another country can be claimed as a tax resident by that country too. These rules decide whether the 10% + 5% really works for you – ask before you move or start.
VAT – when the company must register
- Turnover above €51,130 in a calendar year – apply within 7 days. Below the threshold registration is voluntary.
- Services from abroad – for example Google or Facebook ads, software or hosting from EU companies – the company must register before the first such service (at least 7 days before), whatever its turnover. It then self-charges VAT on these services.
- Services to businesses in other EU countries – the same early registration; the invoices are without Bulgarian VAT (reverse charge) and are reported in the VIES return.
- Online sales of goods to consumers in other EU countries above €10,000 a year – VAT of the buyer's country, usually through the EU OSS scheme.
Late registration means VAT on past sales, interest and a fine from €255.65 to €2,556.46.
Yearly obligations of an EOOD
- monthly VAT return by the 14th (if VAT registered) and VIES return for EU transactions;
- monthly payroll and social security declarations by the 25th (if there are salaries);
- annual corporate income tax return by 30 June;
- annual financial statements published in the Commercial Register by 30 September – or, for a company with no activity, a declaration instead;
- tax on dividends by the end of the month after the quarter in which they were declared;
- keeping the data on the beneficial owners up to date in the Commercial Register.
The euro and other changes
Bulgaria uses the euro since 1 January 2026. The annual statements for 2026 are the first in euro, and companies must convert the capital in their founding documents into euro by 31 December 2028.
For 2027 the government has published drafts (not yet law, as of the last check): a higher VAT registration threshold (€60,000 for 2027 according to the latest announcement), tax losses carried forward for 10 years instead of 5, a fixed-asset threshold of €1,000, and mandatory e-invoices between businesses from 1 January 2028. We update this page when they are adopted.
Questions
Is a Bulgarian EOOD really taxed at only 10%?
The profit of the company is taxed at 10%. When you pay the profit out as a dividend, 5% more is withheld – about 14.5% in total. Salaries are taxed at 10% plus social security. Your country of residence may tax the dividends again, with credit for the Bulgarian tax.
Can I be the only owner and the manager?
Yes. Most EOODs are owned and managed by the same person.
Do I have to pay myself a salary?
No, but if you manage the company and live in Bulgaria, you are usually insured as a self-insured person on at least the minimum base. Many owners combine a small insured income with dividends.
Can I take money out before the end of the year?
Dividends of an EOOD are paid from the profit in the adopted annual financial statements. Money taken before that is treated as a loan or advance and can be considered a hidden profit distribution – ask us before you withdraw.
Does the company need an accountant?
In practice yes. The accounts and returns must follow the Bulgarian Accountancy Act and be filed in Bulgarian, and the annual statements are signed by the person who prepared them.
Sources: Corporate Income Tax Act, Personal Income Tax Act (incl. Article 4 on residence), VAT Act (incl. Articles 96 and 97a), Social Security Code, Accountancy Act (Article 38), Act on the Introduction of the Euro in Bulgaria (Article 32). General information as of the date of the last check – not tax or legal advice.
Running a Bulgarian EOOD?
We keep the accounts, file every return on time and explain everything in English – from Yambol or online.