Bulgaria presents a compelling environment for entrepreneurs looking to launch innovative cryptocurrency projects with flexibility, low barriers to entry, and access to the broader European market. While the country does not yet have a standalone legal framework specifically tailored for digital assets, it operates under EU-wide regulations and maintains a business-friendly climate that supports technological innovation.
As a member of the European Union, Bulgaria aligns with key directives such as the Anti-Money Laundering Directive (AMLD) and is preparing for the implementation of comprehensive EU crypto regulations like MiCA. This positions Bulgaria as an accessible jurisdiction for startups aiming to build compliant, scalable blockchain ventures before full harmonization across Europe.
Key Benefits of Launching a Crypto Business in Bulgaria
Operating in Bulgaria offers several strategic advantages for crypto entrepreneurs:
- Fast company registration and licensing – The entire process can be completed remotely in as little as one month.
- Low capital requirements – Starting at just €1, making it one of the most affordable EU jurisdictions.
- No mandatory local office or staff – Fully remote operations are permitted.
- Minimal regulatory fees – No steep application or annual supervision costs.
- EU market access – A Bulgarian license facilitates expansion into other EU member states.
- Favorable tax regime – Corporate income tax is capped at 10%, with VAT exemptions on crypto transactions.
- Openness to innovation – Though no official regulatory sandbox exists, authorities support tech experimentation within existing frameworks.
👉 Discover how to launch your compliant crypto venture in Bulgaria today.
Regulatory Framework: Current Laws and Compliance
While Bulgaria lacks dedicated crypto legislation, several national and EU-derived laws govern digital asset activities.
The Anti-Money Laundering Measures Act (MAMLA)
The primary law regulating crypto businesses in Bulgaria is the Anti-Money Laundering Measures Act (MAMLA), which implements the EU’s 5th Anti-Money Laundering Directive (5AMLD). MAMLA formally defines virtual currency as:
“A digital representation of value not issued or guaranteed by a central bank or public authority, not necessarily linked to a legal tender, lacking legal status as currency, but accepted by individuals or legal entities as a means of exchange and capable of being transferred, stored, and traded electronically.”
Under MAMLA, crypto service providers must:
- Conduct Know Your Customer (KYC) and Customer Due Diligence (CDD) procedures.
- Identify ultimate beneficial owners (UBOs) and maintain transparent ownership structures.
- Report suspicious transactions to the Financial Intelligence Unit (FIU) at the National Security Agency.
- Apply enhanced due diligence for transactions exceeding BGN 30,000 (~€15,000).
Entities offering the following services must register with the National Revenue Agency (NRA):
- Exchanging crypto for fiat or other cryptocurrencies
- Safeguarding private keys on behalf of clients
- Storing and transferring digital assets
Consumer Protection Rules
Although crypto assets are not classified as financial instruments under the Financial Instruments Markets Act (MFIA), consumer protection laws apply when services are offered to individuals for non-investment purposes.
Key obligations include:
- Providing clear, accurate pre-contractual information
- Avoiding unfair contract terms or misleading marketing
- Allowing consumers a 14-day right to withdraw without penalty
- Notifying users of any changes to terms at least seven days in advance
- Enabling dispute resolution through the Bulgarian Consumer Protection Commission
Data Privacy and Advertising Standards
Crypto companies must comply with both the Bulgarian Personal Data Protection Act (PDPA) and the GDPR, ensuring secure handling of user data. Special rules apply when processing data of minors under 14.
Advertising must be truthful and non-deceptive. Comparative ads that harm competitors or distort market fairness are prohibited under the Competition Protection Act.
How to Obtain a Crypto License in Bulgaria
There is no specific "crypto license" per se, but registration with the National Revenue Agency (NRA) is mandatory under MAMLA.
Step-by-Step Process
- Register a Bulgarian company – Typically as a Limited Liability Company (EOOD), requiring only €1 in share capital.
- Prepare detailed service descriptions – Including website functionality, software architecture, and target markets.
- Develop internal AML/CFT policies – Aligned with EU directives.
- Launch a compliant platform – With KYC/AML integration and security protocols.
- Pay a BGN 50 (~€25) registration fee.
- Submit an electronic application signed with a qualified electronic signature.
Once approved, the business is listed in the NRA’s public registry and receives an electronic certificate within approximately one month—significantly faster than many other EU countries.
Any changes to business details (e.g., address, website, ownership) must be reported promptly to maintain compliance.
Company Formation and Operational Requirements
Bulgarian corporate law allows foreign entrepreneurs to establish a presence without residency requirements. A local registered office is needed, but virtual offices are acceptable.
Required documents include:
- Certificate of company name reservation
- Notarized copies of directors’ and shareholders’ IDs
- Articles of association
- Bank confirmation of initial capital deposit
The total cost for registration is around €80–€100, including state fees and administrative support.
👉 Learn how to set up your EU-compliant crypto business efficiently.
Taxation for Crypto Businesses
Bulgaria offers one of Europe’s most competitive tax environments:
- Corporate income tax: Flat rate of 10% on global profits
- Dividend withholding tax: Only 5%
- VAT: Exempt on crypto-to-crypto and crypto-to-fiat exchanges (per EU Court of Justice ruling)
- Social contributions: Employer pays 13.72% (pension) + 4.8% (health); employee pays 10.58% + 3.2%
- Double taxation treaties: In place with ~70 countries
Companies exceeding BGN 50,000 (~€25,600) in turnover over 12 months must register for VAT.
Annual audits are optional unless two of the following thresholds are exceeded:
- Total assets > €1 million
- Annual revenue > €2 million
- Average staff > 50 employees
Upcoming EU Regulations: MiCA and DLT Pilot
Bulgaria will soon adopt two major EU frameworks:
Markets in Crypto-Assets Regulation (MiCA)
Expected to take full effect in 2025, MiCA will introduce harmonized rules across the EU for:
- Issuers of utility tokens and stablecoins
- Crypto Asset Service Providers (CASPs)
- Environmental disclosures
- Investor protection and market integrity
This will replace fragmented national approaches with a unified licensing regime.
DLT Market Infrastructure Pilot (DLT Pilot)
Launched in March 2023, this temporary framework allows regulated entities to test blockchain-based trading and settlement systems under MiFID II rules. It acts as a regulatory sandbox for innovative market infrastructures.
Frequently Asked Questions (FAQ)
Q: Does Bulgaria require a physical office for crypto companies?
A: No. A registered virtual office suffices. There is no requirement for a physical presence or local employees.
Q: Is there an annual fee for maintaining a crypto registration?
A: No. Bulgaria does not impose ongoing regulatory fees or supervision costs on registered crypto businesses.
Q: Can non-EU citizens start a crypto company in Bulgaria?
A: Yes. Foreign individuals and entities can fully own and operate Bulgarian crypto firms remotely.
Q: Are crypto profits taxed in Bulgaria?
A: Yes, but only at a flat 10% corporate tax rate on net profits. Capital gains from trading are also taxed at favorable rates.
Q: How long does it take to get registered?
A: Typically 3–6 weeks from company formation to NRA approval.
Q: Is audit mandatory?
A: Only if your company exceeds two of these: €1M assets, €2M revenue, or 50 employees annually.
👉 Get started with your compliant European crypto business now.
Final Thoughts
Bulgaria remains an attractive gateway for launching crypto ventures in Europe. With minimal setup costs, rapid registration, favorable taxation, and alignment with upcoming EU regulations like MiCA, it offers startups a strategic advantage.
As regulatory clarity increases across the continent, establishing early compliance foundations in a flexible jurisdiction like Bulgaria can position your project for long-term success in the global digital economy.