Bulgaria has long been considered one of the most affordable and convenient countries for starting a business in Europe. It is chosen not only by first-time entrepreneurs but also by international companies looking for a legal way to operate within the EU with minimal costs. Thanks to its favorable tax environment, stable economy, and simple administrative procedures, more and more foreign investors are considering the option to open your EU business in Bulgaria in order to gain access to the European market and the protection of EU legislation.
Economic Stability and Strategic Location
Bulgaria has been a member of the European Union since 2007, which automatically opens the doors to a vast internal market without trade barriers. The country occupies a strategic position between Europe and Asia, providing convenient access to key logistics routes and Black Sea ports. This is especially important for companies involved in manufacturing, trade, or transportation.
In addition, Bulgaria’s economy is characterized by stability and moderate GDP growth. The government actively supports small and medium-sized businesses by simplifying the tax system and reducing administrative barriers. Such policies make doing business not only profitable but also predictable—something that is particularly valuable for foreign investors.
Taxes That Truly Motivate
One of the key factors behind Bulgaria’s attractiveness is its low tax burden. It offers one of the most advantageous tax regimes in Europe.
Main advantages include:
- Corporate income tax — only 10% (a flat rate for all companies).
- Personal income tax — 10%, making salaries transparent and cost-efficient.
- VAT — 20%, while exports to other EU countries are VAT-exempt.
- Possibility of tax incentives for companies creating jobs or operating in priority sectors.
Under these conditions, entrepreneurs can retain more profit for growth rather than paying it in taxes. This is why Bulgaria is often referred to as a “risk-free European offshore.”
Ease of Company Registration and Business Operations
Bulgaria is one of the countries where a company can be opened quickly and with minimal costs. Citizenship or permanent residence is not required to register a legal entity.
The registration process includes several steps:
- Choosing a business form (most commonly OOD — equivalent to an LLC).
- Registering the company name and legal address.
- Opening a bank account.
- Paying the minimum share capital (from 2 BGN).
- Obtaining a tax number and registration in the Commercial Register.
The entire process usually takes from 3 to 5 business days, and even faster with the help of local consultants. In addition, many services, including accounting and legal support, are available in English, which significantly simplifies the process for foreign entrepreneurs.
Access to the EU Market and Financial Instruments
Registering a business in Bulgaria automatically grants the right to operate throughout the European Union. This means companies can freely sell goods and services, hire employees from other EU countries, and open branches without additional permits.
Moreover, Bulgarian companies can participate in European grants and entrepreneurship support programs. These include funds for innovation, energy efficiency, digitalization, and startups. For early-stage projects, this provides an excellent opportunity to grow with the support of the EU and international partners.
Skilled Workforce and Affordable Operating Costs
Bulgaria offers an attractive balance between workforce quality and labor costs. The local workforce is well educated, especially in IT, engineering, and finance. At the same time, salary levels remain significantly lower than in Western Europe, allowing businesses to reduce expenses without compromising work quality.
Additional advantages include:
- High level of technical education.
- Widespread English proficiency among young professionals and specialists.
- Flexible and business-friendly labor legislation.
- Well-developed infrastructure for remote work.
Thanks to these factors, Bulgaria is becoming a hub for IT companies, startups, and outsourcing-oriented businesses.
Bulgaria is rightfully considered one of the best countries for those looking to start a business in the European Union. The combination of low taxes, economic stability, transparent procedures, and full access to the EU market makes it an optimal choice for both startups and large companies.