Favourable tax laws
10% flat corporate tax rate. This is the lowest tax rate in EU.
10% flat personal income tax rate. This is the lowest tax rate in EU.
20% VAT. This is an average VAT rate in the EU.
Social security payments of 12.1% from the employee and 16.9% from the employer – some of the lowest rates in the EU.
5% withholding tax on dividends. The tax is due only if dividends are being distributed from the profit. The tax is 0% if the distribution of dividends is to an EU company.
Bulgaria has Double Taxation Relief agreements with all the EU countries and with 60 countries in total, including the US.
Possibility to apply IFRS instead of local accounting standards, if preferred. It is very convenient for companies engaged in consolidation, cross-border reporting and standardized reporting procedures.
Easy company start-up
The required capital for the registration of a limited liability company in Bulgaria is 1 euro.
There is a unified register of companies “The Trade Register” and the registration takes 3-7 days.
Free movement of people
Foreign citizens, who register a company in Bulgaria and give employment to at least 10 Bulgarian citizens, are entitled to receive temporary residence permits with which they can easily get visas for other countries from the EU from their Embassies in Bulgaria. After 5 years they can obtain a permanent residence permit which will enable them to travel in the EU without any visas.
Foreign citizens who invest in Bulgaria over 500 000 euro in Bulgarian state treasury bills or make a deposit in a Bulgarian bank for at least three years, or register a company in Bulgaria with 3 000 000 euro capital can apply for a permanent residence permit immediately.
Low labour costs
Bulgaria is the country with the lowest labour costs in the EU, while its labour force is highly educated and qualified with many foreign degrees and training certificates.
The biggest European banks are represented in Bulgaria. Perfect organization of E-banking.
Situated on the main road between Europe and Asia and in the center of the Balkan Peninsular Bulgaria is more than good business choice. There are 4 Pan-European transport corridors that cross the country and 3 of them make their connection in Sofia.
For more information contact us.