Bulgaria EOOD (Single-Member LLC)
Bulgaria
Bulgaria's EOOD (Eднолично Дружество с Ограничена Отговорност, single-member LLC) and OOD (multi-member LLC) are private limited company structures with EU's lowest corporate tax rate at 10% flat. Minimum share capital is just BGN 2 (~EUR 1), making Bulgaria one of the cheapest EU jurisdictions to incorporate. The 5% dividend withholding tax (reducible by treaty) brings combined effective tax to ~14.5%. Bulgaria's full EU + Schengen membership (Schengen full integration from January 2024) provides freedom of movement for owners and employees. The country has been a popular jurisdiction for digital-nomad entrepreneurs since 2010s, and increasingly so following the 2024 Schengen full accession. Banking is more accessible than many traditional offshore jurisdictions but still requires in-person opening at most local banks (UniCredit Bulbank, DSK Bank, Raiffeisenbank).
Formation Details
- Setup Time
- 4 days
- Setup Cost
- $700
- Annual Cost
- $1,200
- Corporate Tax
- 10% flat (one of EU's lowest)
- VAT Threshold
- $56,000
- Nominee Directors
- Allowed
- Public Register
- Yes
- Residency Required
- No Bulgarian-resident director required. Beneficial owner residency not required.
- Banking Difficulty
- Moderate
Economic Substance Requirements
- Physical Office
- Not required
- Local Director
- Not required
- Minimum Staff
- —
- Annual Local Spend
- —
BGN 2 (~EUR 1) minimum share capital. No mandatory Bulgarian-resident director. Bulgarian registered address required (can be registered agent). Notarised foundation documents in Bulgarian, with translation services adding to setup cost. Beneficial-ownership register filing (UBO) mandatory.
Annual Maintenance Breakdown
Typical recurring costs after formation. Most jurisdictions have additional variable costs (accounting fees, professional tax prep, statutory audits) not shown here.
| Item | Annual Cost (USD) | Notes |
|---|---|---|
| Trade Register annual filings | $80 | BGN 130 (~EUR 65)/yr for annual financial-statement filing. |
| Registered office service | $250 | EUR 200-400/yr from local providers. |
| Accountant + tax filings | $800 | EUR 800-1,500/yr depending on complexity. Bulgarian-language statutory accounts required. |
| Annual UBO declaration | $50 | Beneficial-ownership register update if any changes. |
Banking Pairing Recommendations
Providers commonly used with this entity type for business banking.
US Person Considerations
Bulgarian EOOD owned by US persons is CFC; Form 5471 required. The US-Bulgaria tax treaty provides 5%/10% dividend withholding rates and reduced rates on interest/royalties. Bulgaria's 10% corporate tax + 5% dividend withholding = effective ~15% all-in tax — favourable for active business but US CFC rules can pull income up to higher US rates.
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