Български
English
Bulgaria is an attractive destination for business of foreign investors and international companies. The advantages of registering company in Bulgaria are as following:
• Low risk related to business environment
Bulgaria is a member of the European Union from the beginning of 2007 and also member of NATO from 2004.
• Tax advantages
Bulgaria has adopted one of the most favorable tax systems for the local and foreign companies in the entire European Union. The local tax laws are continuously being harmonized with the EU principles and norms. The Corporation/Profits Tax rate of 10% (ten percent) is the lowest within the entire European Union.
• Financial stability and Stability of the Banking system
The country has adopted Currency Board supported by the International Monetary Fund and the local currency is fixed to the EURO. The Banking sector is very stable with high capitalization of the Banking institutions. The level of Bank reserves as required by law are also considerable.
• Low cost of doing business
Bulgarian Labor force is highly qualified and could be hired at extremely competitive price levels. Selling and rental prices of Real Estate property are also very attractive.
• Avoidance of double taxation
Bulgaria has concluded treaties for double tax avoidance with more than 50 countries all over the world.
• Business administration
Registration of company in Bulgaria takes several days and VAT registration up to 10 days. The minimum requested capital is 1 Euro (One Euro)
• Excellent geographical location and access to foreign markets
Bulgaria is situated in the center of the Balkan Peninsula on the main corridor between Europe and Asia. The country has easy access to trade markets in Europe and Russia as well as to such ones in the Middle East.
Low taxes and not very strict regulators – with such characteristics Bulgaria looks like almost complete offshore zone. The missing components are the possibility of easy hiding of ownership and maintenance of Bank secrecy. Although the biggest business incentives are the low tax rates which makes the country attractive and not secretive destination. What does this mean in practice?
Example 1. Company registration and business activity in the country-taxation
Corporation Tax/Profits tax 10%, Dividends Tax 5%, Value Added Tax 20%. Labor Costs are the lowest in the EU. Relatively low levels of compulsory social security installments. Dividends Tax is due within 5 years of profit declaration. For example, if you have profit before tax of 10,000 Euro, the profit tax is 10% so you reach the after tax profit of 9,000 Euro. If you decide to distribute dividend, the tax is 5% or 450 Euro payable within a time span of another 5 years.
Example 2. Company registration in Bulgaria and business activity in the EU or third countries-taxation
If you are owner of entity registered in Bulgaria operating in the EU or third country, regardless the type of business, the taxations is as following: Corporation Tax/Profits tax 10%,Dividends Tax 5% and Value added Tax 0% (zero percent). Labor Costs are the Lowest in EU and low levels of compulsory social security installments of employees assigned on business trips abroad. This is possible after formal permission from the Bulgarian Tax authorities allowing your staff to perform business activity abroad and being employees of a company taxed in Bulgaria.
If you have decided to register a company in Bulgaria we will be happy to offer our expert assistance by providing to you comprehensive accounting, tax, payroll, audit and legal services as well as services related to overall business administration like: company set up and registration; legal representation, selection and implementation of information system, bank payments; assistance in negotiations with customers, suppliers, banks, service companies etc.