The first 3 months in Bulgaria: what to get right early

The first three months decide how smooth the next three years will be. Most problems we see later, from blocked bank accounts to penalties from the tax office, start with something small that was skipped at the beginning. Here is what to get right early.

1. Choose the structure before you register

Most foreign owners start with an EOOD (single-owner limited company) or an OOD (more than one owner). Before registering, think about who will own the shares, who will be the manager, and how you plan to take money out of the company: salary, dividends or both. Changing this later is possible, but costs time and money.

2. Plan the bank account early

Opening a business bank account is often the slowest step. Banks must know who owns and controls the company and where the money comes from, so have your documents ready: passports, proof of address and a short description of the business. Some banks ask for a visit in person.

3. Decide on VAT on purpose

You do not always need to register for VAT from day one, but in some cases you must, for example when you receive services from suppliers in other EU countries. Registering when you do not need to adds monthly reporting; not registering when you must leads to penalties. See our article on VAT registration in Bulgaria.

4. Hire the right way

Every employment contract has to be registered with the National Revenue Agency before the person starts work. Salaries, social security and health insurance are reported and paid monthly. Getting this wrong is one of the most common sources of fines for new companies.

5. Keep the books from the first invoice

Accounting is not something to sort out at the end of the year. Keep every invoice and contract from day one, issue your own invoices correctly and keep personal and company money separate. It makes the annual accounts simple and protects you if the tax office asks questions.

6. Know the yearly calendar

• Monthly: VAT returns (if registered), payroll and social security.
• By 30 June: the annual corporate income tax return for the previous year and the payment of any remaining tax.
• By 30 June: filing the annual financial statements with the Commercial Register.
• When something changes: updating beneficial ownership and company details.

The short version

Choose the structure with your plans in mind, start the bank process early, make a deliberate VAT decision, register contracts before people start, and keep clean books from the first invoice. That is most of what separates a smooth start from a stressful one.

This article is general information based on the rules in force in October 2026. It is not tax or legal advice for your specific situation.