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Table of Contents:
1. Top 5 Disadvantages of Moving to Bulgaria
2. The right way to do it
3. Company Formation in Bulgaria
The 5 biggest disadvantages of moving to Bulgaria.
20 March 2025 7793 101. Lowest salary level in the EU
So, for those who are not yet retired and/or whose self-employment is not yet on solid footing, Bulgaria presents a certain level of risk. Wages are sometimes so low that they barely cover basic living expenses. If you don’t own property in Bulgaria and have to pay rent, the net salary is often hardly enough to make ends meet. There are, of course, exceptions to this rule, but unemployment benefits and other social welfare programs are almost nonexistent, meaning there is little financial support in case of job loss.
On the other hand, self-employed individuals and entrepreneurs benefit from one of the lowest tax burdens in the entire European Union. There is a 10% corporate tax on company profits and a 5% dividend tax on profit distributions.
But here comes the big advantage of GO EU!
We specialize in both Romania and Bulgaria and have permanent employees on-site in these countries. This means we operate with our own team and an extensive network in Bucharest as well as in Ruse, Bulgaria (just a 1.5-hour drive from Bucharest Airport). We also have our own in-house tax advisors, and our business is family-run. Their sons are part of our accounting team.
Thanks to this expertise, we have created a setup that allows us to handle corporate tax matters efficiently with the tax authorities. For newly established companies in Bulgaria, we are able to secure a corporate tax rate of 7.5% instead of 10%.. And this is completely legal and accessible to almost everyone through GO EU!
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(NEW: Support with official procedures for emigration)
2. Population decline
As a foreigner, one thing quickly becomes clear: for many young Bulgarians, working abroad is the ultimate goal. Almost everyone eagerly talks about relatives or friends who have found a good job in Western Europe.
Like many former Eastern Bloc countries, Bulgaria still struggles with the long-term effects of the Soviet planned economy. However, the biggest issue is demographics: with a median age of 45, the economy lacks dynamism.
As is common in emerging economies, there is a significant gap between the wealthier urban population and the poorer rural citizens. Young Bulgarians are leaving in droves for economically more attractive countries, causing the population to shrink year after year.
3. Language barrier
For many, their time in Bulgaria is marked by a language barrier, which affects not only professional life and networking but also everyday situations. While some younger Bulgarians speak good English, they represent only a small fraction of the population. This becomes especially challenging when dealing with government offices, as officials typically do not speak English, making a translator essential for communication.
4. Corruption
In Bulgaria, there is a striking contrast between the perceived level of corruption in the country and the very low rate of investigations and convictions for corruption offenses involving high-ranking government officials. The European Union, of which Bulgaria has been a member since 2007, has repeatedly criticized the country for its inadequate efforts to combat corruption and organized crime.
5. Health system
Bulgaria’s healthcare system is managed by the Ministry of Health and funded through a public health insurance system. The quality of medical facilities in urban centers is generally low, and in rural areas, access to healthcare is often even worse. In public hospitals, few staff members speak English, so having a sufficient level of Bulgarian language skills is highly recommended.
I hope you enjoyed this article! If you’re interested in starting a business in Bulgaria or saving on taxes, we would be happy to hear from you. Feel free to get in touch with us!
Update 2025: 10 Minutes initial consultation 100% free.
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Call us: +49 (0)89 90 42 23 60
(NEW: Support with official procedures for emigration)
Starting a company in Bulgaria
1. 7.5% instead of 10% tax - only with GO EU!
Bulgaria has a very simple tax system: a flat 10% tax for everyone! This means a tax burden of 10% on profits. However, expenses not incurred in Bulgaria cannot be deducted or used to reduce taxable income. As a result, the system almost resembles a 10% turnover tax.
The unique selling point of GO EU!
We specialize in both Romania and Bulgaria and have permanent employees on-site in these countries. This means we operate with our own team and an extensive network in Bucharest as well as in Ruse, Bulgaria (just a 1.5-hour drive from Bucharest Airport). We also have our own in-house tax advisors, and our business is family-run. Their sons are part of our accounting team.
Based on this expertise, we have developed a system that allows us to legally secure a corporate tax rate for newly established companies in Bulgaria, in full compliance with the tax authorities. 7.5% instead of 10% And this is completely legal through GO EU and accessible to almost everyone!
2. Opening bank accounts will be made much easier from 2024
Bulgaria has consistently ranked last within the EU. For years, opening a bank account as a foreigner or for non-residents was nearly impossible. However, this situation has improved significantly. For some time now, it has also been possible to open an account with direct banks such as Revolut, among others.
However, the process remains very time-consuming and is often handled incorrectly by many Bulgarian tax advisors - leading to failed bank account openings. At GO EU, we can almost guarantee a bank account opening for business founders and provide full support throughout the entire process.
Update 2025: 10 Minutes initial consultation 100% free.
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Roman Steger
Published on 20 June, 2024 / Answer
I would like to emigrate and start a company. Can I set up the company in advance so that everything is ready to go when I travel to Romania?
Wolfgang
Published on 20 June, 2024 / Answer
Everything can be done remotely without having to travel. I did it on-site and regretted it...lol.
Jens Lopez
Published on 21 June, 2024 / Answer
I plan to continue living in Austria and, if at all, move to Bulgaria only after a few years. Can I manage the company from home according to the Double Taxation Agreement?
Thomas Hofmann
Published on 21 June, 2024 / Answer
Starting a company within the EU is a common process that takes place daily—including cases where the founder’s main residence and place of living are not in the country of incorporation but rather in their home country. The incorporation itself is not an issue. Regarding tax recognition by the home country’s tax authorities, it is important to note that everything is based on the Double Taxation Agreement. As long as its guidelines are followed, recognition is ensured. This approach is implemented by hundreds of thousands of businesses and is a completely standard procedure, not a legal gray area.
Larissa
Published on 22 June, 2024 / Answer
I'm interested in a consultation. Can I just call?
Thomas Hofmann
Published on 22 June, 2024 / Answer
We can be reached by phone every weekday during regular office hours. We're always happy to hear from you directly. An initial consultation, including a free consultation, is always free of charge.
Distel
Published on 23 June, 2024 / Answer
Apart from direct banks like Wise or Revolut, where can you get a local bank account as a "foreigner"?
Donald T.
Published on 14 September, 2024 / Answer
Direct banks are much better, the local Bulgarian banks...
Donald T.
Published on 09 January, 2025 / Answer
Cool article!
Reiner
Published on 09 March, 2025 / Answer
Bulgaria might be cheap, but the bureaucracy is slow and a lot of places still feel pretty run-down.
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