Accounting Services in Bulgaria for International Companies
PAYROLL BG provides accounting services in Bulgaria for foreign-owned subsidiaries and for Bulgarian companies with similar reporting requirements. We maintain your books under Bulgarian law, file monthly VAT returns and annual financial statements, and prepare reporting packages for your group, in English and Bulgarian. Your accounts are handled by a dedicated accountant and reviewed by a registered auditor, with direct access to the firm’s partners whenever you need it.
Accounting in Bulgaria:
Statutory Requirements for Foreign-Owned Companies
Accounting in Bulgaria follows EU directives, yet several statutory requirements differ from those in many Western European jurisdictions. The requirements below have the greatest impact on foreign-owned companies. For a wider overview of taxes, VAT and reporting, see our guide to taxes, VAT and compliance in Bulgaria.
Calendar Financial Year Required for All Companies
Bulgarian companies close their financial and tax year on 31 December, with no alternative year-end permitted. Subsidiaries of groups with a different year-end, such as 28 February or 31 March, need an additional closing at the group’s year-end date and a separate reporting package, which we prepare to the group’s reporting timetable.
Monthly VAT Returns, Regardless of Turnover
The VAT period in Bulgaria is always one calendar month, with no quarterly or annual filing option, regardless of turnover. All VAT-registered companies file a monthly VAT return by the 14th of the following month, together with purchase and sales ledgers listing each invoice separately, including for months with no transactions. Small subsidiaries therefore report as often as large enterprises.
Foreign companies without a Bulgarian entity can also obtain a Bulgarian VAT number through our VAT registration service.
No Binding Tax Rulings from NRA
Bulgaria offers neither binding advance tax rulings nor advance pricing agreements (APAs), and opinions of the National Revenue Agency (NRA) are not binding. If written NRA guidance later proves incorrect, interest and penalties do not apply, but the tax remains payable. Supporting documentation is therefore the principal safeguard in a tax audit.
Withholding Tax on Management Fees
Unlike many Western European countries, Bulgaria levies a 10% withholding tax on fees for the management or control of a Bulgarian company paid to a foreign company. Consulting fees are taxed in the same way. The Bulgarian company must withhold the tax, whether or not the service provider is a related party.
А double tax treaty may reduce or eliminate the tax, but only if the foreign company provides a certificate of tax residence issued by the tax authorities of its home country and a declaration that it is the beneficial owner of the income. The Bulgarian company then files a return with the NRA by 31 March of the following year. For payments exceeding approximately EUR 255,600 per year to a single recipient, the NRA must first confirm that the conditions for applying the treaty are met.
Reporting Loans and Foreign Accounts to the BNB
Loans with foreign parties, including the parent company, must be declared to the Bulgarian National Bank (BNB) within 15 working days of signing if they amount to EUR 25,000 or more per agreement.
Any account opened abroad, whether with a bank, a payment institution or under a group cash pooling arrangement, must be declared within the same period, regardless of its balance. Loans and accounts are then reported periodically until they are closed. Trade payables and receivables with foreign parties are reported quarterly once their total reaches EUR 100,000. This reporting is statistical and separate from tax returns.
Accounting Services in Bulgaria:
What We Handle for You
We work in your group’s ERP or in our own accounting software. We align your reporting in systems such as SAP, Microsoft Dynamics NAV / Business Central and Xero with Bulgarian requirements, automate routine processes and keep your digital archive compliant.
Statutory Accounting & Tax Compliance
Our accounting services in Bulgaria cover posting of source documents, reconciliation of balances, receivables and payables, and monthly or quarterly closing with bilingual summaries.
We prepare and submit all statutory monthly and quarterly filings, including VAT returns, VIES and withholding tax returns, and, where applicable, Intrastat declarations and reports to the National Statistical Institute and the BNB.
Year-End Close under Bulgarian NAS and IFRS
We prepare annual financial statements under Bulgarian National Accounting Standards (NAS) or IFRS as adopted by the EU, with a NAS-to-IFRS reconciliation covering leases, revenue and employee benefits for subsidiaries that report to their group under IFRS.
Where we also run payroll, we calculate leave and retirement benefit accruals directly from payroll data. We file the corporate income tax return and arrange the filing of the financial statements with the Commercial Register within the statutory deadlines.
Financial & Management Reporting
We prepare optional monthly or quarterly management packs with tailored analytics, KPIs and cost insights to support decisions and financial control.
Group Reporting and Consolidation
We prepare consolidated financial statements for Bulgarian parent companies and their subsidiaries. For international groups, we prepare consolidation packages in line with the group’s reporting timetable and accounting policies.
Statutory Accounting Oversight
For subsidiaries of international groups that use global ERP systems, we act as your local chief accountant, reviewing transactions for Bulgarian compliance and preparing and submitting all statutory filings.
How We Price Accounting Services
Each monthly fee is fixed in advance and depends on your VAT status, the volume of invoices and bank transactions, the type of activity, inventory records, the systems and reports you use, and your assets and financing. To prepare your proposal, we send a short questionnaire or arrange a meeting. The fee is tied to the agreed volumes, and everything it covers is listed in an annex to the service agreement, so there are no hidden fees.
Why International Companies Trust PAYROLL BG
PAYROLL BG is a business services provider specializing in company formation, employer registration, payroll, accounting, VAT registration, and tax compliance. We support international companies throughout their entire business lifecycle in Bulgaria.
Audit-Ready Accounting
Your accounting records are kept ready for inspection by the National Revenue Agency (NRA) at any point, while remaining aligned with the accounting policies of your parent company.
Our registered auditor, Asen Dimitrov (Reg. 0849), brings audit-level precision to day-to-day bookkeeping. If the NRA opens a tax audit, we represent you throughout the procedure as part of our tax and VAT compliance services.
Your Accountant in Bulgaria
Your dedicated accountant works with you in English or Bulgarian, remotely or in person at our office in central Sofia, with video calls whenever you prefer.
Day-to-day work follows a fixed monthly routine. Documents are exchanged through a client portal on Microsoft SharePoint and are due by the 5th of the following month. Invoices are posted using OCR recognition, bank transactions are posted through automated import, and you receive automatic reminders ahead of the deadline.
Each month you receive a report of the returns filed; reports in your group’s format are prepared on request. We reply to every enquiry within 24 hours.
Accounting Transition Without Disruption
Changing accountants does not have to interrupt your reporting. In most cases we take over within two to three weeks of the initial review.
Before we take over, we review your accounting policies, chart of accounts and how your accounts are structured, and share practical recommendations where adjustments are needed.
We start with ongoing reporting, including monthly VAT returns, quarterly reports and statistical filings, so no deadline is missed. In parallel, your previous accountant completes the closing for their period and provides the trial balance, usually within the following month, and we post the balances as opening balances.
At your request, we can coordinate the transfer of balances directly with your previous provider.
Accounting for Foreign Companies with a Bulgarian VAT Number
Foreign companies can register for VAT in Bulgaria without establishing a local legal entity. Once registered, they submit monthly VAT returns with purchase and sales ledgers by the 14th of the following month, including for periods with no activity, and VIES declarations where applicable.
PAYROLL BG manages these filings and maintains the supporting accounting records.
VAT registration does not, by itself, create a permanent establishment, but the scope of activities in Bulgaria may. We assess this before registration; see our VAT registration and tax compliance services.
Frequently Asked Questions: Accounting in Bulgaria
01. How much does an accountant cost in Bulgaria?
02. Which accounting standards apply in Bulgaria?
03. What does the Bulgarian Accountancy Act require from foreign-owned companies?
04. Is there an official chart of accounts in Bulgaria?
05. Do we need a local accountant in Bulgaria if our group keeps the books in SAP?
06. How often does a Bulgarian company file VAT returns?
07. What are the main tax and reporting obligations of a Bulgarian company?
Quarterly: withholding tax declarations (Art. 55 of the Personal Income Tax Act and Art. 201 of the Corporate Income Tax Act), for example on dividends paid to individuals, filed by the end of the month following the quarter. Companies with net revenue above BGN 300,000 (approx. EUR 153,400) make advance corporate tax payments, and some companies also report to the National Statistical Institute and the Bulgarian National Bank.
Annually: the corporate tax return by 30 June and publication of the financial statements in the Commercial Register by 30 September.
08. How are dividends taxed in Bulgaria?
• Bulgarian individuals: 5% final tax, withheld by the company on payment.
• Foreign individuals: 5%, or a lower rate under the applicable double tax treaty.
• Bulgarian companies: no withholding tax.
• Companies resident in the EU or EEA: 0%, provided the conditions of the Corporate Income Tax Act are met.
Dividends can be distributed only from current or retained profit, as shown in the adopted annual financial statements, and tax withheld is declared quarterly.
09. Does a Bulgarian subsidiary need a statutory audit?
10. When does SAF-T reporting apply to a Bulgarian company?
11. How hard is it to switch accountants in Bulgaria?
12. How long must accounting and payroll records be kept in Bulgaria?
Keep Your Books in Perfect Order
Let us handle the complexity of Bulgarian accounting while you focus on growth. Our experienced team ensures every number adds up accurately, efficiently, and on time. Contact us for a fixed-fee proposal based on your business structure.
