Accountancy Services in Bulgaria (2026)
→NB! The choice of your company structure afflicts the type of accountancy services you will need.
Bulgaria just adopted the euro. As of January 1, 2026, the Bulgarian lev is gone. Every financial statement, invoice, payroll record, and tax filing now happens in euros. For foreign companies operating in Bulgaria, this isn’t just a currency swap. It’s a complete accounting reset.
Quick answer: Foreign companies in Bulgaria need local accounting expertise more than ever. The 2026 euro transition, new SAF-T reporting requirements, and Bulgaria’s unique tax filing rules create complexity that generic accounting software can’t handle. Professional accountancy services in Sofia bridge the gap between your business operations and Bulgarian regulatory compliance.
Last reviewed: January 2026. Information reflects current Bulgarian tax law and euro adoption rules.
Why Bulgaria Attracts Foreign Companies
The math is simple. Bulgaria offers a flat 10% corporate tax rate, the lowest in the European Union alongside Cyprus. Manufacturing companies in high-unemployment areas pay 0%. Dividend tax sits at just 5% for domestic distributions.
These numbers explain why Sofia has become a hub for international business. Over 650 companies now run BPO, IT outsourcing, and R n D operations from the Bulgarian capital. But low taxes come with Bulgarian paperwork. And Bulgarian paperwork requires Bulgarian expertise.
The 2026 Accounting Overhaul
Three major changes hit Bulgarian accounting in 2026. Each one affects how foreign companies manage their finances here.
Euro Adoption
The conversion happened at the fixed rate of 1 EUR = 1.95583 BGN. All bank accounts converted automatically. No fees, no IBAN changes. But the administrative work? That falls on businesses.
Here’s what changed on January 1:
- All invoices must now be issued in euros
- Tax returns filed after January 1 use euro values
- Payroll, compensations, and social benefits switched to euro
- Share capital must be re-expressed in euros (deadline: December 31, 2026)
- Financial statements need euro-converted comparative data going forward
Historical records stay in lev. You don’t retroactively convert old documents. But anything new? Euros only.
SAF-T Reporting Requirements
Standard Audit File for Tax (SAF-T) reporting becomes mandatory in 2026. Large enterprises with annual revenue exceeding BGN 300 million or tax liabilities above BGN 3.5 million must comply first. By 2030, nearly all Bulgarian businesses will need to submit SAF-T reports.
Foreign companies with permanent establishments in Bulgaria aren’t exempt. If your Bulgarian operations hit the thresholds, you file.
New Transfer Pricing Rules
A new Transfer Pricing Ordinance replaced Bulgaria’s previous framework on January 1, 2026. The rules now align with OECD guidelines. For multinational companies with Bulgarian subsidiaries, this means updated documentation requirements and stricter scrutiny of intercompany transactions.
What Foreign Companies Actually Need
Running a company in Bulgaria from abroad sounds straightforward until you encounter the National Revenue Agency (NRA), the National Statistical Institute (NSI), and the National Social Security Institute (NSSI). Each has its own reporting requirements, deadlines, and preferred formats.
Monthly Bookkeeping and Tax Calculations
Bulgarian tax law requires ongoing compliance, not just annual filings. Monthly bookkeeping tracks revenue, expenses, and tax obligations in real time. This prevents year-end surprises and keeps your company audit-ready.
VAT Management
Foreign companies performing taxable supplies in Bulgaria need VAT registration regardless of turnover. The 2026 threshold is EUR 51,130 for domestic businesses, but foreign entities face immediate registration requirements in many cases. VAT returns, VIES declarations, and Intrastat reporting demand consistent attention.
Payroll and Labor Compliance
Hiring in Bulgaria means Bulgarian employment contracts, registered with the authorities within specific timeframes. Payroll processing includes social security contributions, health insurance, and proper documentation. Get it wrong, and you face fines.
Annual Financial Statements
Large companies follow International Financial Reporting Standards (IFRS). Small and medium enterprises can choose between IFRS and Bulgarian National Financial Reporting Standards. Either way, the annual financial statement goes to the Commercial Registry. Corporate tax returns are due between March 1 and June 30.
Electronic Filing Requirements
Bulgaria requires electronic submission for most tax filings. This means obtaining a Qualified Electronic Signature (QES) from a certified Bulgarian provider. Without one, you can’t file.
The Case for Local Expertise
Generic accounting software knows nothing about Bulgarian pension fund contributions. Your headquarters finance team probably can’t read NRA correspondence in Bulgarian. And the euro transition rules? They’re specific to this country, this year.
Local accountants in Sofia understand the quirks. They know which NSI forms apply to your company structure. They track regulatory changes before those changes become problems. They communicate with Bulgarian authorities in Bulgarian, on Bulgarian terms.
This isn’t about distrust of internal teams. It’s about specialization. Your business exists to do whatever your business does. Bulgarian compliance exists to satisfy Bulgarian regulators. Outsourcing the second lets you focus on the first.
Companies Without 2025 Activity
Foreign-owned Bulgarian entities that had no activity during 2025 face simplified requirements. No annual financial statement filing. No corporate tax return. But you still need to formally notify the NSI of your inactive status.
Miss that notification? The simplified treatment disappears. Professional accountants track these deadlines so dormant subsidiaries stay compliant without unnecessary paperwork.
How to Choose Accountancy Services in Sofia
- Check language capabilities: Your accountant should communicate fluently in your language and Bulgarian. Miscommunication costs money.
- Verify regulatory knowledge: Ask about the 2026 changes. If they can’t explain euro transition implications clearly, look elsewhere.
- Confirm government coordination experience: NRA, NSI, NSSI, Commercial Registry. Your accountant should work with all of them routinely.
- Understand the service scope: Some firms handle bookkeeping only. Others provide full compliance support including payroll, tax filings, and annual statements. Know what you’re getting.
- Ask about reporting formats: If your headquarters needs management reports in specific formats, confirm the accountant can deliver.
Frequently Asked Questions
Do foreign companies pay the same tax rate as Bulgarian companies?
Yes. Foreign companies with a permanent establishment in Bulgaria pay the same 10% corporate income tax. Non-residents without a PE are taxed only on Bulgarian-source income, typically through withholding tax mechanisms.
What happens to old invoices after the euro switch?
Invoices issued before January 1, 2026 remain in Bulgarian lev. You don’t convert historical documents. Only invoices issued from January 1 onward must be in euros.
Is a physical office required for a Bulgarian company?
Bulgarian companies need a registered address. This can be a virtual office rather than physical premises. Many foreign-owned companies use virtual office services to maintain compliance without leasing dedicated space.
How long does corporate tax filing take?
The filing window runs from March 1 to June 30 following the tax year. Electronic submission requires a Qualified Electronic Signature. Professional accountants handle the QES requirements and file on your behalf.
Final Thoughts
Bulgaria’s tax advantages are real. The 10% corporate rate beats most European alternatives. But those advantages only work if you stay compliant. The 2026 euro transition adds new complexity to an already unfamiliar system.
Professional accountancy services in Sofia turn regulatory burden into handled business. You focus on operations. They focus on keeping Bulgarian authorities satisfied. That’s the trade-off that makes Bulgarian expansion work.