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EuropeEastern EuropeBG

Bulgaria

AI Agent Legal Status: partial · Autonomy: low

partialAI Regulated
5Score /10

Legal Framework

Bulgaria is subject to the EU AI Act and GDPR. The country has a growing IT sector with competitive talent costs. No specific national AI legislation beyond EU frameworks.

Key Laws & Regulations

  • EU AI Act
  • GDPR (Personal Data Protection Act)
  • Commerce Act

Business Formation

EOOD/OOD (Еднолично дружество с ограничена отговорност) is the standard entity with BGN 2 (approximately EUR 1) minimum capital. Very accessible formation.

Tax Implications

Flat corporate tax rate of 10%, among the lowest in the EU. Flat 10% personal income tax as well. Very competitive overall tax environment.

Opportunities

EU's lowest operational costs combined with 10% flat tax create an extremely cost-competitive base for AI development. Growing Sofia tech ecosystem with strong engineering graduates.

Highlights

10% flat corporate tax rate is very competitive. Essentially no minimum capital for company formation. Lowest operational costs in the EU.

Risks & Challenges

EU AI Act compliance required. Less developed business infrastructure and institutional framework. Corruption perceptions and rule of law challenges.