Bulgaria offers one of the lowest tax rates in the European Union, a strategic location and full EU membership. Since 1 January 2026, the country is also part of the eurozone. Success here, however, depends on knowing the legal framework. Here are the key laws every foreign entrepreneur in Bulgaria should know, and why.

• Commerce Act: Defines the types of companies, such as the limited liability company (Ltd) and the joint-stock company, as well as the rights and obligations of managers and partners. This is the starting point for every business.
• Commercial Register and Register of Non-Profit Legal Entities Act: Regulates the registration of companies and every change in their circumstances. An unregistered change has no legal effect.
• Obligations and Contracts Act: Governs contracts, liabilities, penalties and limitation periods. Every agreement you sign falls under its rules.

• Corporate Income Tax Act: Sets a flat corporate tax rate of 10% and a 5% tax on dividends, among the lowest in the EU.
• Value Added Tax Act: Regulates VAT registration, invoicing and intra-community supplies, with a standard rate of 20%. Mistakes in this area are the most costly.
• Personal Income Tax Act: Introduces a flat 10% tax on the income of individuals, including salaries and management fees.
• Accountancy Act: Requires proper bookkeeping and an annual financial report, submitted and published in the Commercial Register.
• Local Taxes and Fees Act: Covers property tax, waste collection fee and vehicle tax.
• Tax and Social Security Procedure Code: Regulates tax audits, inspections and appeals. Knowing your rights protects you from unjust assessments.

• Labour Code: Governs employment contracts, working hours, leave and dismissal. Bulgarian labour law offers strong protection to employees.
• Social Security Code: Sets the mandatory social and health insurance contributions.
• Health and Safety at Work Act: Defines the obligations of every employer towards the safety of the staff.

• Foreigners in the Republic of Bulgaria Act: Regulates residence and work permits for non-EU citizens.
• Investment Promotion Act: Provides incentives for investors, including faster administrative services.
• Measures Against Money Laundering Act: Obliges banks and accountants to identify their clients and ultimate beneficial owners. Requests for documents are a legal requirement, not distrust.
• Limitation of Cash Payments Act: Payments above a statutory threshold must be made only through a bank account.
• Currency Act: Requires reporting of certain cross-border payments and loans to the Bulgarian National Bank.
• Act on the Introduction of the Euro in the Republic of Bulgaria: Regulates the transition from the Bulgarian lev to the euro.

• Personal Data Protection Act: Applies together with the GDPR to all personal data of clients and employees.
• Consumer Protection Act: Protects the rights of consumers, including complaints and returns.