Investing in Bulgaria: How It Works
What draws investors
- Low costs: labour costs are low by EU standards.
- Low, flat taxes: 10% on company profits and personal income; groups covered by the EU minimum tax pay 15%.
- Equal treatment: foreign companies generally receive the same treatment as Bulgarian ones.
- Incentives for certified investment projects under the Investment Promotion Act.
- The euro, adopted on 1 January 2026, and full membership of the EU single market.
Source: U.S. Department of State: 2025 Investment Climate Statement, Bulgaria1
Restrictions on foreign investors
There are generally no legal limits on foreign ownership or control of companies. The exceptions apply mainly to investors from outside the EU:1
- Agricultural land: non-EU citizens can buy it only after five years of residence in Bulgaria, or through a Bulgarian company they own.
- Real estate: a non-EU citizen who wants to buy land does so through a Bulgarian company.
- Regulated sectors: some limits apply in legal services, air, sea and rail transport, the electricity market, mining and financial services.
Source: U.S. Department of State: 2025 Investment Climate Statement, Bulgaria1
Screening of non-EU investments
The National Assembly added a screening mechanism to the Investment Promotion Act on 22 February 2024, in line with the EU Investment Screening Regulation. Since 22 July 2025 every covered investment needs clearance before it goes ahead.3,2
| Question | Answer |
|---|---|
| Who must file | Investors from outside the EU, and EU companies controlled from outside the EU |
| What is covered | Investments that may affect security or public order, such as critical infrastructure, dual-use goods, energy, critical raw materials, cybersecurity and the media |
| Thresholds | At least 10% of a company’s capital, or an investment above €2 million; any 10% stake in a high-tech company; a new investment above €2 million |
| No threshold | Investors backed by a non-EU government (except low-risk countries), and investors from Russia or Belarus |
| Low-risk countries | United States, United Kingdom, Canada, Australia, New Zealand, Japan, South Korea, UAE, Saudi Arabia, Switzerland and the EEA |
| Where to file | InvestBulgaria Agency; the decision is made by an interagency Screening Council |
| How long | 45 days, extendable once by 30 days; no decision in time means approval |
Source: White & Case: Foreign direct investment reviews 2026, Bulgaria; U.S. Department of State: 2025 Investment Climate Statement, Bulgaria2,1
The first steps
- Choose a structure: most investors set up a limited liability company (EOOD or OOD); a branch or representative office suits other cases. See the company forms.
- Check screening: if the investor is from outside the EU and the sector is sensitive, file before signing.
- Register the company with the Commercial Register; it can be done remotely through a lawyer.
- Open a bank account and register for VAT if needed.
- Apply for incentives before the investment starts, if the project may qualify for a certificate.
Source: Chambers and Partners: Corporate Governance 2026, Bulgaria; White & Case: Foreign direct investment reviews 2026, Bulgaria; Ministry of Economy, Investments and Industry: Investment promotion measures4,2,5
What investors find hard
Foreign investors cite inconsistent regulatory and judicial enforcement, difficulty obtaining permits, frequent changes to laws, a slow court system and labour shortages. A good local lawyer and accountant from the start save time later.1
Bulgaria and the United States have had a bilateral investment treaty in force since 1994 and an income tax treaty since 2009. Bulgaria has about 70 tax treaties in all.1,6
Frequently Asked Questions
What taxes apply to companies and individuals in Bulgaria?
Bulgaria taxes company profits and personal income at a flat 10%; groups covered by the EU minimum tax pay 15%.
Can foreign investors own businesses in Bulgaria?
Foreign investors generally face no legal limits on company ownership or control in Bulgaria and receive the same treatment as Bulgarian companies. Non-EU citizens face exceptions: agricultural land requires five years’ residence or purchase through a Bulgarian company they own, other land must be bought through a Bulgarian company, and some regulated sectors have limits.
Which non-EU investments require screening in Bulgaria?
Since 22 July 2025, covered investments by non-EU investors and EU companies controlled from outside the EU require clearance before proceeding. Screening thresholds include at least 10% of a company’s capital, an investment above €2 million, any 10% stake in a high-tech company, or a new investment above €2 million. Investors backed by a non-EU government, except those from low-risk countries, and investors from Russia or Belarus have no threshold.
How long does investment screening take in Bulgaria?
A Bulgarian investment screening review takes 45 days and can be extended once by 30 days. If the Screening Council does not issue a decision within that period, the investment is approved.
What is the minimum capital for a limited liability company in Bulgaria?
The minimum capital required to establish a Bulgarian limited liability company, known as an EOOD or OOD, is €1 in Bulgaria.
Sources
- U.S. Department of State: 2025 Investment Climate Statement, Bulgaria
- White & Case: Foreign direct investment reviews 2026, Bulgaria
- UNCTAD Investment Policy Monitor: Bulgaria establishes FDI screening
- Chambers and Partners: Corporate Governance 2026, Bulgaria
- Ministry of Economy, Investments and Industry: Investment promotion measures
- Deloitte: International Tax, Bulgaria Highlights 2026 (PDF)
Figures checked 13 October 2026. Prepared by InvestBulgaria for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
