Doing business in Bulgaria
Over the last several years, Bulgaria has become one of the most attractive destinations where you can form a company. Exceptionally low expenses of your business operations is only one of the numerous advantages for registering your company in Bulgaria.
A number of European businesses conduct their activities through Bulgarian companies. These are main reasons for this:
- Establishing a company in Bulgaria is associated with minimum formalities and can only be done in two business days. Since 2007, Bulgaria has been a full-fledged EU member and as a foreign national you are entitled to absolutely the same rights in Bulgaria as are Bulgarian citizens.
- The government of Bulgaria is strongly dependent on foreign investors and for this reason Bulgarian legislation in the area of company registration by foreign nationals and firms is exceptionally favourable.
- As a EU member state, Bulgaria makes use of the absence of borders, free movement of capitals, goods and services and all other advantages.
- Our legislation has been subjected to and harmonised with the legislation of the other EU member states. Therefore, performing your activity through a Bulgarian company you will take advantage of all benefits that you are currently enjoying – but you will save yourself expenses and will make your business a lot more competitive.
- The owner of the Bulgarian company could be you as a natural person, or your current foreign company.
- Corporate tax in Bulgaria is only 10%. It is the same as the income tax rate which is also 10% - the lowest in Europe. The reason for that is once more the ambition of Bulgarian government to attract foreign investors. Performing your activities through a Bulgarian company, you will be paying significantly smaller corporate tax compared to any other EU member state. This will have a strong positive effect on your competitiveness.
- Performing your activities through a Bulgarian company is absolutely the same as doing it through a company which has been registered in any other EU member state. Along with your registration, you will receive a European EU VAT tax number – to be able to do transactions with your EU and global contractors.
- The minimum required capital for registering a business entity in Bulgaria is only 1 EUR. The meaning of this is once again to stimulate foreign investors.
- After the registration of a business entity, you are accountable before creditors, contractors and the state within the size of the capital of your company. You can run an existing business or put into practice your new business idea easily, quickly and with no risk in Bulgaria.
- You will have the right to perform any activity permitted by the law with your new company. Globalisation, free market, modern technologies and the Internet are now making possible the migration of your business to the most advantageous location, concurrently preserving existing business relations and trade channels.
- The average monthly salary in Bulgaria is 350 EUR – the lowest in EU. Naturally, costs of life are twice as low compared to other EU countries. It is a fact that working in Bulgaria you have much lower costs compare to any other country.
- All low-cost airlines have regular flights to Bulgaria – a London-Sofia airplane ticket can be bought for as much as 20 EUR too.
- It is not only corporate tax which is low in Bulgaria. Generally, the entire taxation and social insurance rate is a lot lower. For example, the insurable earnings rate is only 420 BGN (215 EUR).
See also
Bulgarian Banks
Bank system in Bulgaria is exceptionally well developed. Leading banks are commonly branches of foreign banks, such as Unicredit Bulbank, Procredit Bank, Raiffeisenbank, etc.
Bulgarian Taxes
Corporate tax in Bulgaria is only 10% and it is the same as the income tax rate, which is also 10% - the lowest among the EU member states.
Bulgaria and EU
One of the greatest benefits of Bulgaria being a member of the European Union is access to the single market. As it contains over 500 million consumers, access to it offers invaluable opportunities for trade and investments.
Opening bank accounts in Bulgaria
It is easy to open an account at a commercial bank, specific requirements vary but usually a personal ID, and, for companies, a copy of the business register information are required.
Bulgaria and the Euro
Bulgaria joined the European Union as a full member without any protection clauses on 1 January 2007. The Eurozone currently consists of 18 EU Member States. However, the Euro is also used as an official or a de facto currency by a number of countries and regions outside the European Union.
Bulgarian Economic climate
The reasonable macroeconomic parameters of the country make Bulgaria an increasingly preferable investment destination.
Geographic position of Bulgaria
The excellent geographic location makes the country a suitable location for trade with countries from the EU, Africa, the Middle and Far East.
Bulgarian Foreign Affairs
Bulgaria maintains excellent diplomatic and trade relations with its neighbours, as well as with several countries in the Middle and Far East, Europe, North and South America.
Population and human research
The population of Bulgaria is 7.2 million. In order to respond to modern market demands, schools and universities are engaged in the training of highly qualified personnel.