Why is Bulgaria considered a springboard beyond the EU?
Because the EU single market and non-EU markets border each other directly here: the Turkish border is a good hour's drive from Burgas…Read the answer →Investing →
Taxes and company
The flat rate, social contributions, setting up an OOD, bookkeeping and what leaving Germany triggers.
Taxes and company
The flat rate, social contributions, setting up an OOD, bookkeeping and what leaving Germany triggers.
#Steuern #FlatTax #OOD #Firmengründung #Wegzugsteuer
How good is the infrastructure — airport, motorway, proximity to Turkey?
Burgas international airport (with a fully renewed runway in 2025/26) sits at the centre of the area — each location page shows the…Read the answer →Investing →
Is Bulgaria worthwhile for pensioners with a small pension or a tight budget?
No — and we say this very plainly. Bulgaria is not a welfare state like Germany, Austria, Switzerland, Scandinavia or the Benelux…Read the answer →Investing →
Can I rely on a Bulgarian tax adviser?
Not without checking — and this is one of the most important sentences on this site. In Bulgaria, tax adviser is not a protected title…Read the answer →
Which legal form do investors use — and what is an “OOD i Ko KD”?
A Bulgarian limited partnership (KD) under the Commercial Act combines at least one partner with unlimited liability and at least one…Read the answer →Investing →
How does Bulgaria's dividend tax compare with Germany and Austria?
Bulgaria levies a final withholding tax of just 5% on dividends — under Art. 38 of the Personal Income Tax Act for individuals and Art…Read the answer →Investing →
Is there a trade tax (Gewerbesteuer) in Bulgaria?
No. Municipal taxes are listed exhaustively in the Local Taxes and Fees Act (ZMDT) — property tax, vehicle tax, tourist tax and the tax…Read the answer →Investing →
How does Bulgaria's 10% flat income tax work?
Since 1 January 2008 Bulgaria has applied a single 10% rate to the annual taxable income of individuals — with no progressive brackets…Read the answer →Investing →
What is the corporate tax rate — and when are advance payments due?
Corporate income tax is 10% (Art. 20 of the Corporate Income Tax Act) and applies to Bulgarian legal entities and to foreign companies…Read the answer →Investing →
What role does corruption play — and what does that mean for buyers and investors?
Corruption is a real topic of public debate in Bulgaria: in Transparency International's Corruption Perceptions Index the country…Read the answer →Investing →
If I become tax resident in Bulgaria — does that free me from my home country's rules?
No — and this is a common, costly misunderstanding. Tax residence in Bulgaria (usually through your centre of life or a stay of more…Read the answer →Investing →
Is Bulgaria suitable for employees and freelancers?
It depends heavily on where your income comes from. In local employment, wages are among the lowest in the EU: in the first quarter of…Read the answer →Investing →
What is the tax burden on company profits in Bulgaria?
Profits are taxed at 10 percent corporate tax, distributions at a further 5 percent. Together that is 14.5 percent — provided the…Read the answer →
Is a Bulgarian company worth it if I stay resident in Germany?
Considerably less than many expect. If the shareholder remains resident in Germany, all the usual European locations land between…Read the answer →
Taxes: Bulgaria compared with Malta, Cyprus or Hungary
It depends on the question, and the honest answer is: not ahead everywhere. Retain profits in the company and Hungary is cheaper at 9…Read the answer →
What does running a Bulgarian company cost?
Less effort than in most comparable countries, and that is the real point. Small companies face no audit requirement, no municipal…Read the answer →
What is the burden in Germany for comparison?
On 100,000 euros of profit distributed to an individual, the total burden in Germany is 48.57 percent. Of that, 30.14 percent arises at…Read the answer →Investing →
Why are Malta's 5 percent not what they look like?
Because you do not get them straight away. The Maltese company pays 35 percent first. Only afterwards does the shareholder reclaim 30…Read the answer →Investing →
What about Georgia? Taxes are low there too.
Georgia is a strong location and the figures hold up: on 100,000 euros of profit, 78,250 euros remain after tax and running costs. The…Read the answer →Investing →
Do I have to give up my home in Germany when I move to Bulgaria?
For tax purposes yes, if German tax liability is to end. Under section 8 of the German Fiscal Code a person has a residence where they…Read the answer →Taxes →
Is forming a company in Bulgaria enough to save tax?
No. Section 10 of the German Fiscal Code provides that management lies at the centre of senior business direction, that is where the…Read the answer →Company formation →
What is German exit taxation and who does it affect?
Anyone holding at least 1 per cent of a corporation falls under section 17(1) sentence 1 of the Income Tax Act. When unlimited tax…Read the answer →Taxes →
Is it really 10 per cent on everything in Bulgaria?
No, and that shorthand misleads. Personal income tax is a flat 10 per cent and corporate income tax likewise 10 per cent under Art. 20…Read the answer →Taxes →
What is the centre of vital interests and how is it established?
It decides matters where both states wish to tax under their domestic law. The double taxation treaty between Germany and Bulgaria then…Read the answer →Taxes →
What is an EOOD and how does it differ from an OOD?
Both correspond to a German GmbH. An OOD has several shareholders, an EOOD exactly one; the E denotes the single-member form. Both are…Read the answer →Company formation →
How are pensions taxed if I move to Bulgaria?
That depends on the type of pension and on which state the double taxation treaty between Germany and Bulgaria assigns the taxing right…Read the answer →Taxes →
What is left of 100,000 euros of profit in Germany and in Bulgaria?
On full distribution to an individual, the total burden is 48.57 per cent in Germany and 14.5 per cent in Bulgaria. That leaves 51,434…Read the answer →Taxes →
Does a holiday home in Germany count as a residence?
It depends on whether you can dispose of it. Section 8 of the Fiscal Code asks whether a person occupies a dwelling in circumstances…Read the answer →Taxes →
I let my flat in Germany. Do I still have to pay tax on it there?
Yes, in principle. Anyone with neither a residence nor a habitual abode in Germany is subject to limited income tax liability under…Read the answer →Taxes →
I only want to spend the winters in Bulgaria and keep my flat. Does that change anything for tax?
No. As long as the flat in Germany remains available, residence continues under section 8 of the Fiscal Code, and with it unlimited tax…Read the answer →Taxes →
Can I keep my German GmbH and still live in Bulgaria?
It is possible, but these are two questions, not one. First the shares: with a holding of at least 1 per cent under section 17(1)…Read the answer →Company formation →
I still have clients in Germany. Can I move anyway?
Having clients in Germany does no harm as long as the work does not take place there. What decides is where the work is performed and…Read the answer →Company formation →
From what turnover do I need VAT registration in Bulgaria?
The obligation arises once taxable turnover within the country exceeds the national threshold of 51,130 euros. For the Union-wide small…Read the answer →Company formation →
How long does registration in the Bulgarian commercial register take?
Shorter than most people expect. Under Art. 19(2) of the Commercial Register Act, the registrar decides on applications for entry…Read the answer →Company formation →
What does the managing director of an EOOD pay in social insurance?
The managing sole shareholder registers as a self-insured person and chooses a monthly insurance income between a minimum and a…Read the answer →Company formation →
Who owes the VAT when my Bulgarian company invoices a German client?
The German client, provided he is a business. For a service supplied to a business the place of supply is where the recipient runs his…Read the answer →
From when do I need a Bulgarian VAT identification number?
There are two triggers, and the second is usually missed. Registration under the Bulgarian VAT Act becomes compulsory once domestic…Read the answer →
Does my Bulgarian company need an EORI number?
Only if goods cross the external border of the Union. The EORI number identifies the economic operator to customs; whoever is…Read the answer →
What is the tax number of a Bulgarian company?
It is the EIK, the unified identification code from the commercial register. Bulgaria keeps no second tax number alongside it; the…Read the answer →
What does a haulier need in order to operate out of Bulgaria?
Authorisation to pursue the occupation of road transport operator, and on top of that the Community licence. Four requirements must be…Read the answer →
Do the lorries of a Bulgarian haulier have to return to Bulgaria every eight weeks?
No, not any more. The Court of Justice of the European Union annulled that obligation on 4 October 2024, joined cases C-541/20 to…Read the answer →
When is the Bulgarian income tax return due?
The annual tax return for individuals must be filed with the National Revenue Agency (NAP) by 30 April of the following year (Art. 50…Read the answer →Taxes →
How much will wages rise around Burgas in 2027?
Employers in Bulgaria expect salaries to rise by 5 per cent in 2027. According to the TRS Bulgaria 2026 remuneration survey by Marsh…Read the answer →Company formation →
Will Bulgaria's main taxes change in 2027?
According to the head of government on 14 October 2026, the main taxes on income and profit and VAT stay unchanged in the 2027 budget…Read the answer →Taxes →
This information is for general orientation only and does not replace legal, tax, banking, construction, notarial or compliance advice.
