Major Advantages Of Setting Up A Company In Bulgaria

5 reasons to register a company in Bulgaria

During the last several years more and more entrepreneurs decide to invest and register a company in Bulgaria. A lot have started to refer to the capital city of the country — Sofia, as the Silicon Valley of Europe since many of the starting companies are developing software products or software as a service. If you wonder what drives so many foreigners in Bulgaria, here are the top 5 reasons:

1. Low taxes

Taxes in Bulgaria are really low. Corporate income tax is fixed at a flat rate of 10% per year which makes it one of the lowest in Europe while the capital gains tax is only 5%. This means that in overall you pay less than 15% tax on your company income on an annual basis.

Furthermore, VAT in Bulgaria is fixed at 20% for all goods and services except for tourism where the tax rate is only 8%.

Actually, the tax regime in Bulgaria for businesses is the most favorable in the whole European union.

2. Easy access to the European market

Bulgarian is a member of the EU since 2007 for the last almost 10 years has been enjoying the benefits of the free European market. This means that there are neither taxes on imports and exports to and from member countries of the EU, nor custom duties for shipment of goods in the union.

3. The labor market

If your business operates in the IT area you will easily find many talented employees with relatively low salaries compared to most other countries in the EU. Access to the EU free market also allows for easy transfer of labor force from one member country to another.

4. It is easy

You can register a limited liability company (Ltd. or LLC) in Bulgaria in less than a week and you don’t even need to be present in the country at the moment of registration. Company registration in Bulgaria is concluded almost entirely online and you must only visit a bank and a notary.

5. It is cheap

The whole registration process will cost you less than 150 euros from start to finish. The minimum capital required by law for the founding of a limited liability company is only 1 euro. Bank taxes and accounting services are also relatively cheap and you can easily hire an accountant for less that 40 euros per month.