What Does It Really Cost to Run a Company in Bulgaria?

One of the most common questions we receive from foreigners considering Bulgaria as a business base is: “What are the ongoing costs?” While the initial registration is affordable, understanding the full annual cost picture is essential for proper budgeting. Here is a realistic breakdown based on current rates in the Troyan area and the broader Lovech region.

Accounting Fees

Every Bulgarian company is legally required to maintain proper accounting records. Unless you are a qualified Bulgarian accountant yourself, you will need to hire one.

Typical monthly accounting fees:

• Dormant company (zero activity): 50-100 BGN/month
• Small company (few transactions): 150-250 BGN/month
• Medium activity company: 250-400 BGN/month
• Active trading company: 400-800+ BGN/month

Annual accounting cost range: 600-9,600 BGN

Fees in the Lovech region tend to be lower than in Sofia. Many accountants offer reduced rates for companies with minimal activity.

Social Security Contributions

If you are a manager or self-insured person in your company, you must pay monthly social security contributions. These are calculated on your chosen insurable income, which must be at least the minimum for your sector.

2025 approximate rates on minimum insurable income:

• Health insurance: 8% (split between employer and employee)
• Pension fund: 19.8% (split)
• General illness and maternity: 3.5%
• Unemployment: 1%
• Work accident fund: 0.4-1.1%

Total contributions for a self-insured manager: Approximately 800-1,200 BGN/month on average insurable income, combining both employer and employee portions.

Annual social security cost: 9,600-14,400 BGN (varies based on chosen insurable income level)

Corporate Tax

Bulgaria has a flat corporate tax rate of 10% on profit. This is one of the lowest in the EU.

• Tax is payable annually by June 30 of the following year
• Companies with turnover exceeding 300,000 BGN must make quarterly advance payments
• No minimum tax amount if the company has no profit

Dividend Tax

When you withdraw profits from your company as dividends, an additional 5% dividend tax applies. This makes the effective combined tax rate approximately 14.5% on distributed profits.

Government Fees and Filings

Several mandatory filings carry associated costs:

• Publication of annual financial statements in the Trade Register: 40 BGN (electronic filing)
• Annual activity report to the National Statistics Institute: Free but mandatory
• Changes to company registration (if needed): 15-40 BGN per filing electronically
• Chamber of Commerce membership (optional): 100-300 BGN/year

VAT-Related Costs

If your company is VAT-registered, additional costs apply:

• Monthly VAT returns: Included in accounting fees but may increase them
• VAT software/compliance: Usually covered by your accountant
• Late filing penalties: 500 BGN minimum for missing a VAT return deadline

Bank Account Fees

Bulgarian business bank accounts carry monthly maintenance fees:

• Monthly account fee: 5-25 BGN
• Online banking: 3-10 BGN/month
• Transaction fees: 0.50-3 BGN per transfer
• Annual card fee: 20-50 BGN

Annual banking cost: 150-500 BGN

Insurance

Depending on your business type, you may need:

• Professional liability insurance: 200-1,000 BGN/year
• Property insurance (if you own office space): 100-500 BGN/year
• Employee liability insurance: Varies

Office or Registered Address Costs

You must maintain a valid registered address:

• Virtual office/registered address service: 50-150 BGN/month
• Shared office space in Troyan: 150-400 BGN/month
• Rented office: 200-800 BGN/month in the Lovech region

Annual address cost: 600-9,600 BGN

Total Annual Cost Summary

Here is a realistic cost summary for different scenarios:

Dormant Company (Zero Activity)

Expense	Annual Cost (BGN)
Accounting	600-1,200
Social security (if no manager salary)	0
Bank account	150-300
Registered address	600-1,800
Government filings	40
Total	1,390-3,340

Active Small Company

Expense	Annual Cost (BGN)
Accounting	1,800-3,000
Social security (manager)	9,600-14,400
Bank account	200-400
Registered address/office	1,200-4,800
Government filings	40-100
Corporate tax	10% of profit
Total (before tax)	12,840-22,700

Tips for Reducing Costs

• Choose an accountant in the Lovech region rather than Sofia for lower fees
• Use electronic filing for Trade Register submissions (cheaper than paper)
• Combine roles where possible (owner-manager) to minimize social security
• Consider dormancy if you need to pause operations temporarily

Get a Personalized Cost Estimate

Every business situation is different. At our law office in Troyan, we help foreigners understand the true cost of operating in Bulgaria and find ways to structure their businesses efficiently.

Contact Attorney Biser Dimov for a detailed cost analysis tailored to your business plans.