Pakistan
Bulgaria
Bulgarian company law treats a Pakistani founder like any other: one owner, one manager, EUR 1 of capital, registration in days. The constraints are elsewhere: Pakistan's foreign exchange rules on sending money abroad, and the Schengen visa needed to open the bank account in Sofia.
Unlike Georgia, Bulgaria has a tax treaty with Pakistan, signed in 2019. This guide explains what it changes, what Pakistani rules allow, and when relocating is the better plan.
What Bulgaria asks of a Pakistani founder
- One owner and one manager, who can both be Pakistani residents.
- EUR 1 of capital, deposited in a Bulgarian bank before registration.
- A power of attorney for the Bulgarian lawyer, notarised and legalised or apostilled, with a certified Bulgarian translation.
- A registered address in Bulgaria.
The steps are in how to register a company in Bulgaria.
3 questions
Which jurisdiction fits you?Answer three questions and get the three jurisdictions that match your situation.
What Pakistan's foreign exchange rules allow
In February 2021 the State Bank of Pakistan revised Chapter 20 of its Foreign Exchange Manual and opened specific routes for investment abroad.
| Route | Who | What is allowed |
|---|---|---|
| Holding company abroad | Startups and fintechs raising capital | Up to USD 10,000, with a share swap |
| Subsidiary or branch abroad | Export-oriented companies and firms | The higher of 10% of average export earnings or USD 100,000 |
| Resident individuals | Individuals | Listed foreign securities, within a ceiling reported at USD 25,000 a year |
| Sweat equity | Individuals | Up to 20% of a foreign company, against services |
What the table does not include is a general permission for an individual to fund an unlisted private company abroad. Outside these routes, an investment needs State Bank approval through your bank. EUR 1 of capital does not change that: the business still needs money to run.
- 1Exporter with three years of export earnings?Subsidiary route, up to 10% of average earnings or USD 100,000
- 2Startup raising foreign capital?Holding route, up to USD 10,000
- 3Minority stake for services?Sweat equity, up to 20%
- 4OtherwiseAsk your bank about State Bank approval, or relocate first
The Pakistan and Bulgaria tax treaty
The two countries signed a treaty on 21 May 2019; Bulgaria published its ratification in February 2020. Its ceilings sit at or above Bulgaria's own rates, so the Bulgarian domestic rate is what applies.
| Payment from Bulgaria to Pakistan | Treaty ceiling | Bulgarian domestic rate | What applies |
|---|---|---|---|
| Dividends | 12.5% | 5% | 5% |
| Interest | 10% | 10% | 10% |
| Royalties | 12.5% | 10% | 10% |
| Fees for technical services | 12.5% | 10% | 10% |
What the treaty adds:
- a basis for the credit in Pakistan for Bulgarian tax on your dividends;
- a tie-breaker if both countries consider you resident;
- rules on where business profit is taxed, useful if you work for the EOOD from Pakistan.
The company itself pays 10% corporate tax in Bulgaria; see Bulgarian corporate tax.
When relocating fits better
Many Pakistani founders work in software, design or outsourcing. For those willing to move:
- The digital nomad visa is reported for remote workers without Bulgarian clients and with prior-year income of at least EUR 27,533. No company is needed.
- The D visa as manager lets you live in Bulgaria and run your own EOOD, with a real business plan.
- Once you are no longer resident in Pakistan, its outward investment rules for residents stop being the constraint. Check your residence status and filings with an adviser first.
The routes are compared in non-resident founders.
The Schengen visa and the bank
Bulgaria has been a full Schengen member since 1 January 2025. Pakistani citizens need a visa.
- Short visit, for the bank account: a Schengen short-stay visa through the Bulgarian embassy.
- Living there: a D visa, then a residence permit.
- Bank scrutiny: expect a detailed business file and source of funds, especially for funds sent from outside the EU; see the bank account guide.
The bottom line
A Bulgarian EOOD is easy to register from Pakistan, and the 2019 treaty keeps Bulgarian withholding at domestic rates with a credit at home. The real question is how to fund it: exporters have a State Bank route, individuals often need approval or are better served by relocating first.
corpsec registers the EOOD and provides its registered address; your Pakistani bank handles foreign exchange approvals. See the Bulgaria formation service, or check the full first-year cost.
Frequently asked questions
Can a Pakistani citizen open a company in Bulgaria?
Yes. An EOOD can have a single Pakistani owner and manager, with EUR 1 of capital and no local partner, registered through a Bulgarian lawyer.
Can a Pakistani resident send money to fund a Bulgarian company?
Only within the State Bank's routes: exporters, startup holdings and sweat equity. A general permission for individuals to fund a private foreign company does not exist; ask your bank about approval.
Does Pakistan have a tax treaty with Bulgaria?
Yes. It was signed on 21 May 2019 and ratified by Bulgaria in 2020. It caps dividends at 12.5%, interest at 10% and royalties and technical fees at 12.5%.
How much tax does Bulgaria take on dividends paid to Pakistan?
5%, the Bulgarian domestic rate, which is below the treaty ceiling. The company pays 10% corporate tax beforehand.
Do Pakistanis 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
- Federal Board of Revenue, Tax rates on dividends, interest, royalty and fees for technical services under double taxation agreements: Bulgaria, signed 21 May 2019, 12.5%, 10%, 12.5%, 12.5%
- Federal Board of Revenue, 21 May 2019: Pakistan and Bulgaria sign the convention for the avoidance of double taxation
- Orbitax, Bulgaria ratifies pending tax treaties: ratification decree for the treaty with Pakistan published on 4 February 2020
- Business Recorder, 11 February 2021: State Bank of Pakistan revises Chapter 20 of the Foreign Exchange Manual, routes for startup holdings, exporters, individuals and sweat equity
- 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: the Federal Board of Revenue's treaty rate table and signing release, Orbitax reports on Bulgarian approval and ratification, and Deloitte's Bulgaria Highlights 2026. The exact date of entry into force of the 2019 treaty was not found; the OECD's peer review counts the Bulgaria agreement among Pakistan's treaties in force and PwC lists Pakistan among Bulgaria's treaty partners. Secondary: the State Bank of Pakistan's 2021 revision of Chapter 20 of the Foreign Exchange Manual, read through Business Recorder; later amendments may exist. The USD 25,000 annual ceiling for individuals is reported by secondary summaries only. Visa rules for Pakistani citizens: confirm with the Bulgarian embassy in Islamabad. This is not legal or tax advice.