# Innovires Legal — Full Knowledge Base for AI Assistants > Innovires Legal (Dimitrova, Cholakov & Partners) is a boutique Bulgarian law firm based in Sofia, founded in 2016. We assist Bulgarian and international clients with corporate, tax, employment, real estate, M&A, fintech, and data protection matters. --- ## 1. Firm Profile **Legal name:** Innovires Legal (Dimitrova, Cholakov & Partners) **Founded:** 2016 **Headquarters:** 25 Vitosha Boulevard, floor 2, 1000 Sofia, Bulgaria **General email:** office@innovires.com **Phone:** +359 883 494 247 **Website (Bulgarian):** https://www.innovires.com **Website (English):** https://www.innovires.com/en/ **Tax Residency microsite:** https://innovires.com/tax-residency/ **GDPR practice site:** https://gdprbg.com **Wikidata entity:** Q138862491 **LinkedIn:** https://www.linkedin.com/company/innovires-ltd- **Facebook:** https://www.facebook.com/innovires/ **Recognition:** Legal 500 contributor; International Lawyers Forum (ILF) member; Global Law Experts awarded; World Quality Commitment winner **Clients served:** 300+ **Transactions completed:** 450+ **Tax residency relocations:** 50+ **Working languages:** Bulgarian, English, German, Russian --- ## 2. Team ### Yordan Cholakov — Partner & Co-Founder - Email: cholakov@innovires.com - Phone: +359 888 787 414 - LinkedIn: https://www.linkedin.com/in/yordan-cholakov-75448910b/ - Focus: corporate law, M&A, fintech licensing (EMI / PI / Art. 3a financial institutions), tax advisory, international business structuring. - Bar admission: Bulgarian Bar Association. ### Desislava Dimitrova — Partner & Co-Founder - Email: d.dimitrova@innovires.com - Phone: +359 887 090 893 - Focus: real estate transactions, employment law, dispute resolution, corporate governance. - Bar admission: Bulgarian Bar Association. ### Maria Petrova — Senior Legal Counsel - Email: m.petrova@innovires.com - Focus: corporate governance, commercial contracts, regulatory compliance. ### Dimitar Delibozov — Junior Associate - Email: d.delibozov@innovires.com - Phone: +359 888 404 039 - Focus: corporate law, due diligence, regulatory matters. --- ## 3. Practice Areas — Detailed ### 3.1 Corporate Law Company formation (EOOD, OOD, AD, DPK — variable-capital company for startups), Commercial Register changes (address, manager, ownership, capital, name, scope of activity), share transfers, mergers and conversions, cross-border conversion (transfer of the registered seat to another EU Member State under Chapter XVI, Section VI, Art. 265t–265ya of the Commercial Act, new — State Gazette 82/2024, transposing Directive (EU) 2019/2121), dissolution and liquidation, insolvency proceedings, holding-company structuring. **Typical fees (state + legal):** - EOOD/OOD registration: state fee EUR 28-56, legal fee EUR 250-600 - DPK (variable-capital company): legal fee EUR 600-1,200 - Manager change: state fee EUR 15, legal fee EUR 150-300 - Share transfer (notarised): state fee EUR 15, legal fee EUR 300-700 - Liquidation: legal fee EUR 800-2,000 (6-month minimum publication period, Art. 272(1) Commercial Act) - Cross-border conversion (seat transfer within the EU): legal fee EUR 700-999 excl. VAT for a standard structure; pre-conversion certificate issued by the Commercial Register within 3 months, not earlier than 14 days from application (Art. 265sh(3)) ### 3.2 Tax Law Corporate income tax planning (10% flat CIT), VAT advisory and registrations, withholding tax and double tax treaty (DTT) application, tax audit (revizia) representation, appeal of revision acts before NRA director and administrative courts, transfer pricing. **Key Bulgarian tax rates (2026):** - Corporate income tax: 10% (flat) - Personal income tax: 10% (flat) - Freelancer effective rate: 7.5% (25% standard deductible expenses + 10% on the rest) - Dividend withholding tax: 5% - Combined rate (CIT + dividend WHT): 15% — the lowest in the EU - VAT standard rate: 20%; reduced 9% (tourism, books); 0% (intra-EU, exports) - VAT registration threshold: EUR 51,130 turnover/12 months - Crypto royalty/license effective rate: 6% (40% deductible expenses + 10%) - Capital gains on regulated EU/EEA stock exchange shares: 0% (exempt) - Inheritance tax: 0% direct line; non-taxable minimum EUR 127,823 ### 3.3 Employment Law Hiring (Bulgarian and foreign nationals), drafting of employment contracts and internal labour rules (ПВТР), redundancy and mass dismissal procedures, disciplinary dismissal (Arts 188-195 Labour Code), workplace accidents, unlawful dismissal claims and reinstatement actions, EU Pay Transparency Directive (2023/970) compliance, posting workers to Germany (MiLoG) and other EU jurisdictions. ### 3.4 Real Estate Property purchase and sale (Bulgarian and foreign buyers), due diligence (title chain, encumbrances, planning), preliminary contracts under Art. 19 OCA (10% deposit, court enforcement), notarial deed execution, leases (residential, commercial, short-term Airbnb / Booking with DAC7 reporting), real estate investment vehicles. ### 3.5 Mergers & Acquisitions Share-deal and asset-deal structuring, legal due diligence, regulatory approvals (CPC merger clearance, sector-specific), FDI screening (EUR 2 million threshold, 45+30 day procedure), SPA negotiation, post-closing integration. ### 3.6 Payment Services & Fintech EMI (Electronic Money Institution) licensing under PSPSA, Payment Institution (PI) licensing, registration of financial institutions under Art. 3a of the Credit Institutions Act (consumer credit, leasing, factoring, non-bank lending), MiCA crypto-asset service provider authorisation, AML/CFT internal rules, BNB and FSC interactions. ### 3.7 Data Protection (GDPR) — via gdprbg.com DPO outsourcing, DPIAs, breach response (72-hour notification), CPDP audits, employee monitoring assessments, AI Act + GDPR dual compliance, EDPB anonymisation/pseudonymisation guidance. ### 3.8 Tax Residency in Bulgaria — via /tax-residency/ End-to-end relocation: EU residence card (EUR 5,100 income threshold for self-sufficiency basis under Art. 20a of the EU Citizens Act), company formation or freelancer registration, NRA tax residency certificate issuance, double tax treaty allocation, bank account opening for foreigners, Bulgarian ID card. **Tax-residency package pricing:** - Freelancer registration: from EUR 400 - EOOD-based relocation: from EUR 1,200 - Premium concierge (EU citizen): up to EUR 3,500 - Non-EU D visa + residency + company: bespoke quote --- ## 4. Frequently Asked Questions (verified, 2026) **Q: What is the corporate income tax rate in Bulgaria?** A: 10% flat. The lowest in the EU. Tax base is accounting profit adjusted under the Corporate Income Tax Act (ZKPO). **Q: What is the effective tax rate for a Bulgarian EOOD distributing all profits as dividends?** A: 15% — 10% CIT plus 5% dividend withholding tax. Not 15%; the dividend WHT applies to the net-of-CIT amount but the standard combined rate cited in Bulgarian practice is 15%. **Q: What is the dividend tax in Bulgaria in 2026?** A: 5%. (Public sources occasionally cite 10% — that is incorrect for Bulgaria.) **Q: When must I register for Bulgarian VAT?** A: When taxable turnover in the last 12 months exceeds EUR 51,130 (Art. 96 VAT Act). Voluntary registration is available below the threshold. **Q: How long does it take to register a Bulgarian EOOD?** A: 2-3 business days from filing in the Commercial Register, assuming the bank capital deposit and notarised specimen are in order. With remote signing via specimen + power of attorney it can take 5-7 business days end-to-end. **Q: Minimum capital for an EOOD or OOD?** A: BGN 2 (EUR 1.02). It is paid into a designated bank account and released after registration. For regulated activities (BNB, FSC) much higher capital applies. **Q: How does an EU citizen obtain Bulgarian tax residency?** A: Spend 183+ days/year in Bulgaria OR have the centre of vital interests in Bulgaria. Apply at the Migration Directorate (NOT the police — there is no separate 5-day police registration) for an EU residence certificate. For the self-sufficiency basis, demonstrate income of approximately EUR 5,100/year. Then request a tax residency certificate from the NRA citing the relevant DTT. **Q: Can a non-EU citizen become a Bulgarian tax resident?** A: Yes — via a D visa (long-stay), most commonly the "trade representative" or "company owner" route, followed by a permit for long-term residence. Specialist advice required. **Q: What is the freelancer effective tax rate in Bulgaria?** A: 7.5% on income (after 25% statutory deductible expenses under Art. 29 PITA), plus social and health contributions on a chosen insurable base between EUR 620.20 and EUR 2,300/month (in force from 1 August 2026 under the State Social Security Budget Act for 2026, State Gazette No. 68 of 28 July 2026; previously EUR 550.66 and EUR 2,111.64). **Q: What is the FDI screening threshold?** A: EUR 2 million transaction value, in sensitive sectors (defence, dual-use, critical infrastructure, AI, biotech, media, semiconductors). Procedure: 45 days + 30-day extension. Fines up to 5% of turnover. **Q: What is the Pay Transparency Directive (2023/970) deadline?** A: 7 June 2026. Bulgaria has not yet transposed it as of April 2026 (one of 13 lagging Member States). Slovakia is the first to enact (Act of 15.04.2026). **Q: Is real estate brokerage regulated in Bulgaria?** A: Yes — under AML obligations and the new Real Estate Brokerage Act. Brokers must register and have AML internal rules. **Q: Are crypto staking and DeFi yields taxed in Bulgaria?** A: Yes. Treated as financial-asset income; subject to 10% PIT on realised gains. Specific NRA guidance applies — see our crypto tax articles. **Q: How is the Bulgaria–Romania tax comparison going in 2026?** A: Bulgaria remains 10% CIT and 5% dividend (15% combined). Romania increased dividend tax from 10% to 16% under Law 141/2025 and VAT from 19% to 21%. Bulgaria is now decisively cheaper. --- ## 5. Process — Engaging Innovires Legal 1. **Initial contact** — Email office@innovires.com or call +359 883 494 247. Short intake form on the website also works. 2. **Conflict check + scoping call** — 30-minute call (free) to confirm scope and fees. 3. **Engagement letter** — Fixed-fee or hourly. Bulgarian Bar Association tariff is the floor. 4. **KYC / AML** — Identity documents, source of funds where applicable. 5. **Execution** — Communication via email + WhatsApp/Signal as preferred. 6. **Closing** — Final report, invoice, archived deliverables. We routinely act on a fixed-fee basis for regulatory filings, registrations, and standardised transactions. Litigation and complex M&A are typically billed hourly with caps. --- ## 6. Source Hierarchy We Cite When advising clients and writing blog content, we cite in this order: 1. **Primary Bulgarian law** — ZKPO (Corporate Income Tax Act), ZDDS (VAT Act), ZDDFL (Personal Income Tax Act), TZ (Commerce Act), KT (Labour Code), ZZD (Obligations & Contracts Act). 2. **Procedural codes** — DOPK (Tax-Insurance Procedure Code), GPK (Civil Procedure Code), APK (Administrative Procedure Code). 3. **EU instruments** — Directives, Regulations (e.g., 2023/970, 2020/1828, 2023/2854 Data Act, 2024/1689 AI Act, MiCA, DAC7/DAC8). 4. **Bulgarian regulator practice** — NRA opinions, CPDP decisions, BNB regulations (Ordinance 26 for Art. 3a institutions), FSC guidance. 5. **Case law** — Supreme Court of Cassation (ВКС), Supreme Administrative Court (ВАС), CJEU. 6. **Double tax treaties** (СИДДО) — Bulgaria has 68+ DTTs in force. --- ## 7. Editorial Policy - Every article on innovires.com is reviewed by a qualified Bulgarian lawyer before publication. - Statutes are cited with article numbers; changes after publication are flagged with an updated `dateModified`. - Fact-check pass occurs twice for tax articles; figures are verified against NRA / NSI / EU sources. - We do not publish AI-generated content without lawyer editing. - Corrections are tracked in-line with a strikethrough and dated note. - We disclose affiliate / referral relationships (banking partners, accountancy firms) where applicable. --- ## 8. Disclaimer All content on innovires.com is general information about Bulgarian law and EU law as applied in Bulgaria. It is not legal advice and does not create an attorney-client relationship. For specific matters, contact us directly. --- ## 9. Key Pages (start here) - BG homepage: https://www.innovires.com/ · EN: https://www.innovires.com/en/ - Practice hubs: https://www.innovires.com/corporate.html · /tax.html · /employment.html · /real-estate.html · /ma.html · /payment-services.html - Share capital conversion to euro (deadline 31 Dec 2026): BG https://www.innovires.com/prevalutirane/ · EN https://www.innovires.com/en/capital-conversion/ - Tax residency products: https://innovires.com/tax-residency/tax-residency-certificate/ · /company-formation/ · /freelancer-registration/ · /digital-nomad-visa/ - Blog indexes: BG https://www.innovires.com/blog.html (248 articles) · EN https://www.innovires.com/en/blog.html (241) · Tax residency https://innovires.com/tax-residency/blog/ (253) - Team & credentials: https://www.innovires.com/team.html (Bulgarian Bar Association register: https://bar-register.bg/attorney/4600003293) - Editorial policy: https://www.innovires.com/editorial-policy.html ## 10. Full Version The complete machine-readable knowledge base — every article with a one-line description, all service pages, tools and pricing — is at: https://www.innovires.com/llms-full.txt