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As accountants, we hear this weekly: can a non-EU citizen own a Bulgarian company outright? The short answer is yes. The useful answer is how to structure it so banks, tax authorities, and partners say “yes” as well. Below is a step-by-step breakdown you can actually use.
Can Non-EU Citizens Own 100% of a Bulgarian Company? | 2025 Guide
Non-EU citizens can own 100% of a Bulgarian limited company (EOOD for a sole owner or OOD with partners). No local partner is required. Directors can also be non-EU citizens. Sector-specific licenses may apply only for regulated activities (e.g., finance, healthcare, security).
Company Formation: What You Need
- Capital: minimum 2 BGN.
- Registered office address in Bulgaria.
- Company name check and drafting of Articles of Association.
- Manager appointment (can be the foreign owner).
- Ultimate Beneficial Owner (UBO) declaration and initial filings at the Commercial Register.
- Documents from abroad must be notarised and, where applicable, apostilled/legalised and translated into Bulgarian by a sworn translator.
- Power of Attorney allows remote incorporation if you cannot travel.
Registration at the Commercial Register is typically completed within a few business days after submission, assuming the file is complete and translations are in order.
The Real Bottleneck: Banking
Incorporation is easy. Opening a corporate bank account can be hard without a local footprint. Bulgarian banks follow strict EU AML and compliance rules and will assess:
- Sanctions/PEP checks and source of funds.
- Real economic presence in Bulgaria or the EU (clients, suppliers, staff, office, website).
- Business model and risk profile (industry, countries, volumes, payment flows).
Expect in-person KYC, detailed questionnaires, and possible follow-ups. A declination usually reflects missing proof of activity—fixable with better documentation.
What to Prepare Before You Approach a Bank
- Business plan with products/services, target markets, and expected payment flows.
- Commercial evidence: draft/actual contracts, pro-forma invoices, letters of intent, supplier quotes.
- Substance: office lease or virtual office agreement, Bulgarian phone number, website, and local accounting engagement letter.
- KYC pack for owners/directors: passports, proof of address, CV/LinkedIn profile, tax numbers, recent bank statements.
- Source of funds: documents showing how initial capital and operating funds are derived.
Practical Table: Formation vs. Banking
| Area | What is Required | Common Pitfalls |
|---|---|---|
| Formation | 2 BGN capital, address, Articles, manager, UBO filing, translations/apostille where needed | Missing translations; incomplete UBO data; no PoA for remote setup |
| Bank Account | KYC, source of funds, contracts, substance, risk assessment | No proof of activity; high-risk geographies; unclear payment flows |
Alternatives and Interim Solutions
While working toward a local bank account, many non-EU owners start with an EU-licensed fintech that issues IBANs and supports card acquiring. This is not always a permanent solution, but it can bridge the first months. Always confirm your counterparties and marketplaces accept your chosen provider.
Taxes and Ongoing Compliance at a Glance
- Corporate income tax: 10%.
- Personal income tax: flat 10% (relevant for Bulgarian tax residents).
- Dividends: typically 5% Bulgarian withholding tax to foreign individuals (treaties may change this).
- VAT: standard 20%; register if you exceed the Bulgarian threshold for taxable supplies or if rules require earlier registration (e.g., certain cross-border activities).
- Accounting: monthly bookkeeping; annual financial statements and corporate tax return; keep statutory registers current (UBO, management, address).
- Employment: hiring triggers payroll, social security, and HR compliance.
Ownership vs. Immigration
Owning a company does not grant a right to live or work in Bulgaria. Residence and work permits are separate processes. Plan immigration and tax residency early to avoid gaps.
Real-World Scenarios
- E-commerce startup (EOOD): single owner outside the EU. Registers the company remotely with a notarised PoA, signs an accounting contract, secures supplier terms, and uses an EU fintech while building proof for a local bank.
- IT consultancy (OOD): two owners, one non-EU. The Bulgarian client contract and an office lease help the bank approve a standard corporate account.
- Trading company (EOOD): non-EU owner with suppliers in the EU. Detailed logistics map and insurance policies address bank risk concerns during onboarding.
Non-EU citizens can own 100% of a Bulgarian company. Registration is fast and inexpensive. Success with banking depends on documentation and substance. With a clear file and the right sequencing, approval rates improve dramatically.
Launch your 100%-owned Bulgarian company with confidence. We align formation, banking onboarding, and VAT/OSS so you can invoice EU clients from day one. Get a practical plan with documents, timelines, and steps that banks understand. Contact us today!
This information is provided for general guidance only and does not constitute tax, accounting, or legal advice. Each situation requires individual review.