Bulgaria is one of the countries in EU which is popular with liberal tax policy and still lower taxes.
If you are thinking about starting business in Bulgaria, the following information is important:
- Bulgarian national currency is BGN(lev), fixed exchange currency – 1EUR = 1,95583 BGN
- Exchange of goods and services within EU countries are taxed once – i.e. no double taxation if you are in EU
- The minimum capital for registration of company is 1 EUR.
- The process of registration of company is no longer than 10 days.
- Corporate income tax is fixed and equal to 10%.
- Value added tax is equal to 20%.
- Dividend tax is equal to 5%.
- The manager of the company should be an individual (local or foreign). The owner of the capital could be individual (local or foreign) or legal person (i.e. company).
To start business in Bulgaria you need:
- Unique name of the company– we are going to support you with check upon request.
- Real current address of the company on the territory of Bulgaria- we can provide you with address in the center of Sofia.
- Bank account in Bulgaria– we can assist in creating your bank accounts even if you are not in Bulgaria.
- Accountant or accounting company for the taxation– we can recommend and provide accounting service upon request.
- If the manager of the company is foreign individual, it is obligatory to have issued personal account of foreigner- we can support upon request.
- In case of revenue flow by cash– it is obligatory to have cash register in the legal vendors.
- To have company seal– we can support upon request.
|Taxes||Rates, costs||Short description|
|Corporate income tax||10%||For legal entities|
|Dividend tax||5%||Not applicable when dividends are distributed in favour of legal entity resident of another European Union Member State|
|Personal income tax||10%||The rate is charged on gross salary minus social contributions payable by the employee|
|Social security contributions for the employee||12,9%||Min chargeable amount is 620 BGN and maximum is 3 000 BGN.|
|Social security contributions for the employer||17,8 – 18.5%||The rate may vary depending on the employer’s type of business. Min chargeable amount is 620 BGN and max is 3 000 BGN|
Different company forms:
|EOOD||Sole-shareholder Limited Liability Company|
|OOD||Limited Liability Company|
|ET||Personal Unlimited Liability Company|
|EAD||Sole-owner Joint-stock Company|
|KD||Commendam, Limited Partnership, Responsibility is according to Agreement|
|KDA||Partnership Limited by Shares|
If you have questions or would like to help you open your company in Bulgaria, you can contact us for advice or for an entire service.
|Tel: (359) 888 833 408|