Client review: "How a Bulgarian Accountant saved me over 50,000€"

Why I Looked at Bulgaria in the First Place

My business was international. My clients were global. My laptop was my office. Yet my tax bill looked like I was running a factory. I wasn’t angry about paying taxes, what hurt was the feeling that I was paying too much because nobody had designed a structure that matched how I actually worked.

When I began searching for options inside Europe, Bulgaria kept appearing in the same conversations again and again: 10% corporate tax, 10% flat personal tax, and 5% dividend tax. Low, simple, predictable. The kind of numbers that make an entrepreneur stop scrolling.

But here’s what I didn’t understand yet: Bulgaria doesn’t automatically save you money. Bulgaria is a framework. Whether you actually benefit depends on the person guiding you.

My First Costly Assumption: “Any Bulgarian Accountant Will Do”

At the beginning, I told myself: “Accounting is accounting. Surely any local accountant can handle this.” That assumption almost became the most expensive mistake of my year.

I spoke to a list of founding agencies: some cheap, some expensive, some surprisingly confident for me who I didn’t ask a single question about where I live, where my clients are, or how money actually flows in my business.

“If Bulgaria is low tax, why do I feel like no accountant really knows much about the Bulgarian tax system?”

Many “accounting services in Bulgaria” are perfectly fine for local shops and Bulgarian SMEs. But the moment you bring in cross-border clients, remote work, multiple currencies, and tax residency questions. Most providers either freeze, guess, or oversimplify.

Where Bad Accounting Services in Bulgaria Can Go Wrong

This is the part I wish someone had told me earlier. The risk isn’t just “paying a bit more tax.” The real risk is paying more tax and creating compliance problems you don’t see until it’s too late.

Warning: If you choose an accountant only because they are cheap, you may pay for it later in penalties, double taxation, lost deductions, or rejected filings.

Red Flag #1: “Bulgaria is already cheap, no planning needed.”

Low headline tax rates don’t guarantee low total tax. Structure matters. Timing matters. Documentation matters.

Red Flag #2: Mixing salary and dividends without a strategy

My tax accountant suggested paying myself a high salary “to keep it simple.” That’s how people accidentally turn a low-tax setup into a high-tax one. The right approach depends on your personal situation and your overall plan.

Red Flag #3: Confusion about non-resident vs resident planning

I was told: “If you’re not a Bulgarian resident, you can’t really optimize.” That was simply not true. Later, I learned that taxes can be reduced to 10% in total without being a resident when done correctly.

Meeting “The One” Bulgarian Accountant

The new Bulgarian Accountant seemed to understand me and asked the right questions:

• Where are you currently a tax resident?
• Where do you spend most of the time each year?
• Where are your clients located?
• Do you want flexibility, or are you open to residency?
• What does “success” look like for you this year and five years from now?

For the first time, I felt like someone was looking at the full picture not just the paperwork. Not “How do we file?” but “How do we design this to be safe, efficient, and sustainable?”

“I don’t want the cheapest accountant. I want the accountant who protects me from expensive mistakes.”

How I reached 10% total tax without Bulgarian residency

This was the breakthrough. I did not become a Bulgarian resident first. I wanted to keep flexibility, travel, and see where it goes.

How I reached 7.5% total tax with a Bulgarian residence permit

Later, once the company was stable and I saw the process was legitimate and manageable, we explored the second path: a Bulgarian residence permit and a deeper optimization strategy.

“This wasn’t a loophole. This was a plan with rules, documentation, and a clear logic behind every step.”

The mistakes I avoided (That Cost Others Thousands)

The biggest value wasn’t only the lower tax rate. It was what could have gone wrong. Here are the mistakes the accountant helped me avoid that are common with low-cost or inexperienced providers.

1) Risk of a "paper company" (lacking substance)

Bad service providers often approach company formation as a mere formality. However, one accountant emphasized the importance of creating a cohesive story: a business needs a clear purpose, accurate documentation, and well-maintained records.

2) Mistakes in VAT handling

For businesses engaging with the EU market, VAT errors can quickly become costly. We implemented streamlined processes, precise invoicing, and adherence to proper timelines to ensure there are no unexpected surprises down the line.

3) Expense chaos

Advice like "just classify everything as a business expense" can lead to substantial problems. We prioritized legitimate expenses backed by solid documentation to ensure everything is manageable and defensible.

4) Residency contradictions

Entrepreneurs frequently encounter tax residency conflicts without realizing it. We designed a strategy that acknowledges both non-resident and residency permit pathways, keeping the structure aligned with legal and practical realities.

Who This Tax Planning in Bulgaria Is Best For

Based on my experience, Bulgaria can be an excellent option if you are:

• A remote consultant or agency owner
• An online service business with international clients
• A digital entrepreneur who wants EU stability with low taxes
• Someone who wants a legitimate plan, non-resident or resident

But if you take one thing from my story, let it be this: Bulgaria isn’t the “magic” part. The accountant is.

Next Steps: If You’re Considering Bulgaria

If you’re researching accounting services in Bulgaria and want to avoid the painful learning curve I went through, Here’s what I’d recommend:

1. Decide your goal: 10% total tax without residency, or 7.5% with residency permit.
2. Get a proper review: You need an accountant who asks about your life, not just your invoices.
3. Build a plan: Structure, documentation, and compliance first optimization second.
4. Execute with consistency: Tax planning only works if your records match reality.

FAQ: Accounting Services Bulgaria & Tax Planning

Can I reduce taxes to 10% total in Bulgaria without being a resident?

Yes, when properly structured and documented. The key is planning for total tax, not only corporate tax, and avoiding mistakes that create additional tax exposure elsewhere.

Is ~7.5% total tax possible with a Bulgarian residence permit?

In many cases, yes, depending on your income mix and compliance. It requires clear planning, documentation, and aligning the structure with your real-life presence and residency conditions.

What’s the biggest risk with cheap accounting services in Bulgaria?

The risk is not “slightly worse bookkeeping.” The risk is wrong filings, weak documentation, VAT mistakes, tax residency contradictions, and planning blind spots that cost far more than the fee you saved.

Do I need to be physically in Bulgaria to open a company?

Often, company formation can be arranged remotely through proper documentation, but some practical steps (like banking) may require additional procedures depending on your case.