Why Bulgaria? BECAUSE YOU SAVE A LOT OF MONEY!
Bulgaria has become a very popular destination for foreign investments in the past several years.
The key benefits of choosing Bulgaria for your business base are:
- Member country of the European Union.
- Member country of NATO.
- National currency fixed to Euro (BGN 2,00 = ~ EUR 1,00).
- Stable and strictly regulated financial system via International Currency Board.
- International Financial Reporting Standards apply.
- Stable and well regulated banking system.
- Lowest company establishment and maintenance costs in the European Union.
- Cheapest real estate purchase and maintenance costs.
- Highest real estate profit potential in the European Union and top rated world-wide.
- Bureaucratic loads are relatively low and virtually unnoticeable if handled professionally.
- Less government regulation into company and personal affairs.
- Bulgaria is a valid and acceptable tax location for the revenue agencies across Europe.
- Double tax agreements with all significant world economies.
- 10% flat Personal Income Tax.
- 10% one-off tax on income, royalties, capital gains and certain other income payable to non-resident individuals.
- 0% income tax on personal bank accounts interest across Europe.
- 0% income tax on 1 real estate property sold, provided it is held for 3 years.
- 0% income tax on 2 real estate properties sold, provided they are held for 5 years.
- 0% income tax on the sale revenue from inherited or gifted real estate properties.
- 10% flat Corporate Profit Tax.
- 10% withholding tax on profit, royalties, capital gains and certain other company income.
- 10% one-off tax on certain expenses deemed discretionary by the tax authorities.
- Low mandatory self insurance contributions (both medical and pension).
- 5% flat Corporate Dividends Tax.
- 20% Value Added Tax (VAT).
- Reduced rate of 7% for certain tourist services.
- 0% for exports and certain other activities.
- Refund of input VAT within three months (regular term).
- Other Tax, Duties and Fees.
- 0,01% – 0,25% annual real estate and property tax based upon government assessment value which is much lower than the actual market value of any given property.
- 0,01% – 3% transfer tax for real estate and vehicles.
- Tax deductibles on vehicles, travel, office and other corporate expenses.
- Excise duties on energy, fuel, alcohol and tobacco.
- Customs duties on imports of goods from outside the European Union.
Beside the key benefits for your business, Bulgaria also offers many other benefits:
- Bulgaria offers on average 300 sunny days per year and enjoys a mild climate for most of the year, with pleasantly hot summers on the coast and sun and snow in the mountains.
- Bulgaria has the lowest costs of living within the European Union. All of life’s essentials - and most of the extras - are cheap. Even if you plan to retire to Bulgaria and live off your foreign pension, you will be able to live very well.
- Most Bulgarians will go out of their way to help you and are famous for their hospitality.
- Bulgaria has long agricultural tradition and offers tasty and natural fruits and vegetables.
- A part of Bulgaria’s attraction is its status as a relatively unknown country, offering much to discover for those willing to spend the time: quaint rustic villages, elaborate churches and monasteries and spectacular natural scenery. In fact, Bulgaria offers a huge range of leisure and cultural activities.
- Bulgaria offers unlimited tourist attractions, beautiful nature and spectacular sightseeing both on mountains and
at the seaside.
TAX COMPARISON TABLES
Tax Comparison - European Union
- Bulgaria and Cyprus are the only European Union members with corporate tax of 10%.
- Bulgaria has more double taxation avoidance agreements than Cyprus.
- Bulgaria is less costly location for maintaining a structure than Cyprus.
- No requirement for a Bulgarian citizen to be part of the management structure.
- Bulgarian 10% corporate tax counts under most agreements as final corporate income tax if proper structuring is put in place.
Tax Comparison - Other Countries
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