Bulgaria

Advantages of the company in Bulgaria

Even if it is a foreign company, it is still a member of the European Union.

• Corporate tax in Bulgaria 10 %
• VAT in Bulgaria is 20 %

The company has certain aspects of an offshore company. It is possible to establish a company remotely without the need to travel to Bulgaria.

Disadvantages of a company in Bulgaria

• The register of companies is publicly accessible in Bulgaria
• Necessary bookkeeping

One of the great advantages of doing business in this country is undoubtedly the problem-free company registration for VAT and the avoidance of double taxation, with a total of 68 countries. The standard VAT rates in Bulgaria are 20 %, but it is possible to take advantage of its reduction to 9 %. One of the other advantages of deciding to do business in Bulgaria is the administratively easy process of establishing a company. We will only need a few pieces of information to start the process of establishing your future company.

The most common types of companies in Bulgaria are OOD (limited liability company) and AD (joint stock company). However, the body of the company can also be a non-resident citizen or a non-resident legal entity. Min. share capital is 2 BNG.

The educational level of the population is high. Most people speak English. The main advantages of doing business in Bulgaria lie in the tax system: taxes are among the lowest in the EU.

• Profit tax is only 10 %
• Tax on dividends for non-residents is 5 %
• Interest tax can reach 10 %

If you decide to create a Bulgarian company, you need to think about the right form. Whichever type of company is chosen, it must be registered in the Commercial Register of the District Court. After establishment, the company must be registered with the local tax office as well as with the National Statistical Institute.

Bulgaria as a new IT powerhouse

Bulgaria has one of the most productive economies in Southeast Europe, which is why many foreign investors have decided to open companies here. Bulgaria has some of the most experienced professionals in the IT industry, which is why the industry has been growing so much over the last few years, transforming the country into an international IT hub. Another important and prosperous sector is the tourism industry, which attracts more and more foreign visitors and investors every year.

It is important to note that Bulgarian corporate laws do not discriminate against foreign companies. Accordingly, a foreigner who registers a company on this market has the same privileges and is subject to the same social conditions as resident companies. In addition, foreign companies in Bulgaria are subject to the same regime and taxation as businesses owned by Bulgarian citizens.

In addition to favorable company laws, regulations, company registration costs and minimum share capital, Bulgaria also has a simplified company registration process for foreign businesses. Imagine being able to register a company from another country on this market without having to come to Bulgaria. This can be done through a power of attorney.

INVESTMENT IN REAL ESTATE IN BULGARIA

Bulgaria has favorable regulations regarding the ownership of real estate and the operation of companies. Foreigners as individuals face legal restrictions on buying land and real estate in this market. However, these restrictions do not apply to foreign companies. Conversely, foreign companies can buy and own land in Bulgaria without any legal restrictions. As for the operation of the company, the company is not subject to any costs after registration (apart from the registered office and accounting records) if it is not in operation. Likewise, a company operating in Bulgaria is not limited in the way it uses its profits. Once the company has paid 10% corporate income tax and 5% dividend tax, the rest of the profits can be legally transferred back to the home country without restriction.

Along with interesting investment opportunities, Bulgaria offers a relatively functional legal system, which is gradually harmonizing with the law of the European Union. As real estate can only be acquired by local persons – legal and natural – currently the only possibility to acquire real estate in Bulgaria is the establishment of a Bulgarian trading company (e.g. OOD) With regard to the taxation of resident companies in the area of income tax, Bulgaria is one of the most interesting jurisdictions in European Union.

You are just one step away from establishing a company in Bulgaria.

Ke stažení

Back to the previous page

Latest blog posts

• Where are the best tax solutions in EU?
• 5 tips on how to overcome a business crisis
• How to smoothly transfer your company to your offspring and enjoy a peaceful retirement

Contact us