Why Bulgaria

Bulgaria is the ideal destination for foreign companies to minimize taxes and reduce business costs. Bulgaria is a full member of European Union and the country has a stable economy and the lowest taxation rates within the EU. The corporate tax is just 10%! It is often called the “tax heaven” of Europe. Bulgaria is a preferred location for companies and individuals who provide services or trade goods within the EU as well as outside EU. The country has low taxes and there is an option for the shareholders to be anonymous but is not considered as an offshore zone. Major advantages include:

Bulgaria has the most favorable tax regime within the European Union

•  10% flat corporate income tax rate (the lowest tax rate in EU).
•  10% flat personal income tax rate (the lowest tax rate in EU).
•  20% VAT rate (an average tax rate for EU), with a reduced rate of 9% applying to hotel accommodation services. Exports and intra-community supplies are zero-rated.
•  Social security payments of 12.9% from the employee and 17.8% from the employer (some of the lowest rates in EU). These are capped out at BGN 2,400 per month.
•  10% withholding tax on interest, royalties and technical service fees paid to a nonresident, unless lower rate applies under a tax treaty.
•  5% withholding tax on dividends paid to a nonresident (0% for dividends payable to legal entity that is a tax residents in EU), unless lower rate applies under a tax treaty.
•  Depreciation of 2 years for computers and new manufacturing equipment.
•  No tax for purchase and sale of company shares
•  2-year VAT exemption for imports of equipment for investment projects that are valued over € 5 million and create at least 50 new jobs.
•  Bulgaria has currently Double Tax Avoidance Agreements with 69 countries (including all of EU countries and one with the United States of America).

Easy company start-up and lowest operational costs

•  The minimum required capital for registration of a limited liability company in Bulgaria is 1 euro.
•  Registration takes 4-7 days.
•  Bulgaria is the country with the lowest labor costs in the EU, and at the same time the labor force is highly educated, skilled and multilingual

Bulgaria has the most favorable tax regime within the European Union

Unique benefits for foreign citizens, who register a company in Bulgaria, to receive temporary residence permits and ease of travel within EU.

Convenience for companies to use IFRS instead of local accounting standards allowing easier international consolidation procedures and cross-border reporting.

Stable political environment, macroeconomic and financial stability, and no currency risk – local currency is pegged to Euro with a fixed rate of 1 euro = 1.95583 Bulgarian levs. This rate has been unchanged for more than 12 years despite the world’s economic turmoil.

Strategic geographic position as a bridge between Europe and Asia. Located in the heart of the Balkans, Bulgaria is a strategic logistic hub.

•  All goods manufactured in Bulgaria are with EU origin and are exported to other member states without duty or VAT.
•  Ease of transportation of cargo is provided by five Pan-European corridors (4,7,8,9,10)
•  Numerous ports at the river Danube, which is a major transportation route in Europe.
•  Bulgaria borders Turkey to the South-East, which makes it well-situated for business with the Middle East.
•  Bulgaria is also close to Russia (two international ports on the Black Sea).