The real question is: why not Bulgaria?
- Corporate tax in Bulgaria is only 10% and it is fixed.
- Dividend tax is only 5% (for individuals).
- Withholding tax in case of invoices to entities that are not residents of Bulgaria (valid in specific cases).
- VAT of 20% (apart from tourism)
- Tax treaties with many countries.
- Around 10 days for company registration.
- Low costs and taxes for employees
- A qualified, affordable and multilingual workforce.
- Bulgarian LEV currency (LEV) – fixed exchange rate to EUR. To join the euro zone in 2024!
- Perfect location (SE Europe).
Stability and freedom benefits:
- An EU Country since 2007.
- Free access to the European markets.
- Economic freedom.
- Positive economic trends.
Often touted as the ‘Silicon Valley of Europe’ as a European Union member, Bulgaria has become attractive for both global businesses alongside those in the small business space looking to tap into the benefits that come from being an official member of the EU - whether economic, political, legal, labor, or environmental, while taking advantage of the competitive elements Bulgaria has over other member states.
There are no taxes for import and export within the EU.
One of the benefits of EU membership includes free access to European markets. This is important if you are looking to start your operations in Bulgaria, as you will also benefit from free markets like any other company in Europe.
The qualified and affordable workforce.
Bulgaria is, in fact, a significant cost saver. With access to young and talented employees. The wages are affordable and you will be able to offer more competitive prices compared to other European countries. It is also possible to transfer skilled employees from other EU countries - yet another advantage of the free EU market.
Long Standing economic growth.
The economic growth of the country on the one hand, and the willingness of the government to promote the entry of foreign investors into Bulgaria on the other, make it attractive to any company looking to do business in Europe, allowing you to develop and penetrate the international business arena and widen your geographical footprint.
General information about Bulgaria and its economic development
Bulgaria borders Greece, Turkey, Romania, Serbia and North Macedonia. The population of the country is about 7 million and it has been a member of the European Union since 2007. The local currency is called “lev” (translated as a lion) (BGN) and is fixed to the Euro currency at a fixed rate of 1.95583 levs for a euro.
There is an influx of high-quality professionals who come to work in Bulgaria and businesses from all over the world choose the country to set up their companies.
Bulgaria is also a convenient platform for international activities. Providing a major corridor of access to Europe, with many opportunities for investment and cooperation in various business fields.
The tахеѕ іn Вulgаrіа аrе аmоng thе lоwеѕt іn thе ЕU which mаkеѕ іt оnе оf thе mоѕt favored соuntrіеѕ for business. With an excellent reputation for its low, 10% flat rate on corporate and personal income.
While dividend tax is only 5%. The government offers even more tax reliefs, especially in areas of high unemployment rates and more. This policy creates a significant focal point of attraction for foreign businesses wishing to maximize profits and grow, and they respectively do so by setting up a company in Bulgaria.
Setting up a business in Bulgaria
The Bulgarian government offers affordable setup fees and social security contributions. The value-added tax (VAT) rate at 0% within the EU is another good advantage of setting up a company in Bulgaria, (while the standard VAT rate is 20%).
But with so much to consider, from the type of registration – whether it’s a Limited Liability Company, Limited Partnership or your choice of legal entity, to participating as a foreign investor, or even choosing the right accounting service – where are you meant to start?
Luckily, S.R. Management is able to provide you with everything you need to make setting up a company quick and easy.
You’ll have direct access to a personal business representative who speaks your language, backed by a team of professional tax and formation experts, familiar with all the intricacies of the local bureaucracy.
Our team of professionals are on hand to help you:
- Prepare all the necessary documents and present them to you during the registration procedure.
- Register your company in the Bulgarian commercial register.
- Assist you to open a necessary bank account.
- Administer the process of receiving Tax ID and VAT Identification number from the National Revenue Agency.
While our accountancy department is on hand to help you manage your financing and the preparation of all the needed reports so that you can concentrate exclusively on your business.
Getting started in Bulgaria
We will be happy to share more about the business opportunities that Bulgaria can offer you and help you choose the most suitable company formation for your business.