Bangladesh
Bulgaria
A Bulgarian EOOD gives a Bangladeshi founder an EU company with EUR 1 of capital and 10% corporate tax. For a long time the obstacle was on the Bangladeshi side: sending money abroad to own a company was closed to most residents.
That changed in two steps: rules for exporters in 2022, and in March 2025 a general permission for startups and individuals, up to USD 10,000. This guide explains both, what tax applies without a treaty, and the visa needed for the bank.
What Bulgaria asks
- One owner and one manager, both of whom can live in Bangladesh.
- EUR 1 of capital, deposited in a Bulgarian bank before registration.
- A power of attorney for the Bulgarian lawyer, notarised and legalised, with a certified Bulgarian translation.
- A registered address in Bulgaria.
The steps are in how to register a company in Bulgaria.
3 questions
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What Bangladesh allows
| Route | Who | Ceiling | Main conditions |
|---|---|---|---|
| Startup route, FEID Circular 02 of 27 March 2025 | Individual Bangladeshi nationals, and resident enterprises under ten years old | USD 10,000 | A Bangladesh-based startup; own funds; annual reports and audited accounts through your bank; unused funds brought back |
| Overseas Equity Investment Rules 2022 | Exporters with an export retention quota account | The lower of 20% of five-year average export earnings or 25% of net worth | Audited accounts, credit standing, feasibility study, Bangladesh Bank committee approval |
| Anything else | Any resident | None published | Ask your authorised dealer bank about approval |
- 1Is it a startup run from Bangladesh?Startup route: up to USD 10,000, through your dealer bank
- 2Is the investor an exporter with an ERQ account?2022 rules: committee approval, within the earnings or net worth ceiling
- 3Neither?Ask your dealer bank about prior approval
- 4Living and earning abroad already?Your new country's rules apply
USD 10,000 is enough for the company itself. It covers the EUR 1 of capital and the setup costs described in the cost guide. Running the business beyond that needs revenue earned through the EOOD or another approved route.
The exporter's case: an EU sales company
For a Bangladeshi exporter, a Bulgarian EOOD can serve as an EU entity: a contracting party for European buyers, an EU VAT number and an EU bank account. Points to plan:
- Real activity in Bulgaria if the entity is to be more than a mailbox, for tax and for the bank.
- Transfer pricing between the Bangladeshi parent and the EOOD at arm's length.
- The Bangladesh Bank committee file: feasibility study, link to the export business.
No tax treaty with Bulgaria
Bangladesh is not on Bulgaria's treaty list, so Bulgarian domestic rates apply in full.
| From Bulgaria to Bangladesh | Bulgarian tax |
|---|---|
| Company profit | 10% corporate tax |
| Dividends | 5% withholding |
| Interest and royalties | 10% withholding |
| Technical and consulting services | 10% withholding |
Without a treaty, three things are missing:
- no cap on Bulgarian withholding below the domestic rates;
- no treaty credit in Bangladesh, only whatever unilateral relief Bangladeshi law gives;
- no tie-breaker if both countries consider a person or the company resident.
Any credit in Bangladesh for Bulgarian tax is unilateral; check with your adviser. The Bulgarian side is in the corporate tax guide.
The Schengen visa and the bank
Bulgaria has been a full Schengen member since 1 January 2025. Bangladeshi citizens need a visa.
- For the bank visit: a Schengen short-stay visa through the Bulgarian embassy or its visa centre.
- For the bank itself: proof of the source of funds, which the Bangladesh Bank route documents for you; see the bank account guide.
- To live in Bulgaria: a D visa as manager; see non-resident founders.
The bottom line
Since March 2025 a Bangladeshi startup founder can send up to USD 10,000 to set up a company abroad, enough for a Bulgarian EOOD. Exporters have a larger route under the 2022 rules. Without a treaty, Bulgaria's 5% on dividends and 10% on services apply in full, and the bank visit needs a Schengen visa.
corpsec registers the EOOD and provides its registered address; your authorised dealer bank handles the Bangladesh Bank reporting. See the Bulgaria formation service, or check the full first-year cost.
Frequently asked questions
Can a Bangladeshi citizen open a company in Bulgaria?
Yes. An EOOD can have a single Bangladeshi owner and manager, with EUR 1 of capital, registered through a Bulgarian lawyer.
Can a Bangladeshi resident send money to set up a company abroad?
Since Bangladesh Bank's FEID Circular 02 of 27 March 2025, individuals and young resident enterprises may remit up to USD 10,000 to set up a legal entity abroad for a Bangladesh-based startup, through an authorised dealer bank.
Can a Bangladeshi exporter open a subsidiary in the EU?
Yes, under the 2022 Overseas Equity Investment Rules, within the lower of 20% of average export earnings or 25% of net worth, with Bangladesh Bank committee approval.
Does Bangladesh have a tax treaty with Bulgaria?
No. Bulgarian domestic rates apply: 10% corporate tax, 5% on dividends and 10% on interest, royalties and technical services.
Do Bangladeshis need a visa for Bulgaria?
Yes. Bulgaria is a full Schengen member, so a Schengen visa is needed for short visits and a D visa to live there.
Sources
- OGR Legal, Bangladesh Bank FEID Circular No. 02 of 27 March 2025: general permission for resident enterprises under ten years old and individual Bangladeshi nationals to remit up to USD 10,000 to set up a legal entity abroad for a Bangladesh-based startup
- OGR Legal, Capital Account Transaction (Overseas Equity Investment) Rules 2022: ceiling at the lower of 20% of average export earnings over five years or 25% of net worth, committee chaired by the Governor of Bangladesh Bank
- Prothom Alo: Bangladesh allows local firms to make overseas equity investment, eligibility tied to exporters' retention quota accounts
- PwC Worldwide Tax Summaries, Bulgaria, Foreign tax relief and tax treaties (reviewed 2 August 2026): Bangladesh is not among Bulgaria's treaty partners
- Deloitte, Bulgaria Highlights 2026: Bulgarian withholding of 5% on dividends and 10% on interest, royalties and technical services paid to non-residents
Read on 26 October 2026: OGR Legal's summaries of Bangladesh Bank's FEID Circular No. 02 of 2025 and of the 2022 Overseas Equity Investment Rules, Prothom Alo, PwC's treaty list and Deloitte's Bulgaria Highlights 2026. The circular and the gazetted rules themselves were not opened; conditions reported for the 2022 draft, such as a share of Bangladeshi staff, are not stated as rules. Whether Bangladesh credits Bulgarian tax without a treaty is a question for your adviser. Visa rules for Bangladeshi citizens: confirm with the Bulgarian embassy or its visa centre. This is not legal or tax advice.