Doing business in Bulgaria

Doing business in Bulgaria is interesting because of the favourable business climate, low taxes, low costs of labour and production and affordable start-up costsBulgaria is one of the fastest growing economies of Europe

In 2011 and 2012 Bulgaria was the 4th fastest growing economy in Europe according to the statistics of the European Union.

 

Economic growth because of a favourable business climate

The Bulgarian economy grows so fast, because the country offers a unique combination of factors that contribute to businesses and the economy of the country.

Bulgaria has the lowest taxes and the most favourable tax regime of Europe

  • 10% corporation tax
  • 0% corporation tax in regions with high unemployment (conditions apply)
  • 10% personal income tax
  • 5% withholding tax on dividends
  • 0% withholding tax on dividends if distributed within the European Union under the parent/subsidiary directive
  • Exemptions on paying VAT on importing production means for certain production projects
  • Possibility for tax deduction on costs for research and development
  • Expedited amortization term of 2 years on computers and production equipment
  • No restrictions on the repatriation of capital

 

Bulgaria has well educated and qualified employees against the lowest labour costs of Europe

Bulgaria has a large pool of available well educated and qualified employees. This is one of the reasons why businesses choose Bulgaria for their activities either by employing Bulgarian workers or by using outsourcing services. By working with Bulgarian employees or by outsourcing of the production process large savings can be made on labour and production costs.

 

Starting a company in Bulgaria is affordable and accessible

The combination of low taxes and low labour and production costs makes Bulgaria a very interesting country for business, because it brings many benefits for businesses. Another advantage, that shouldn’t  be forgotten, about Bulgaria is the fact that starting a business in Bulgaria is affordable and accessible for anyone.

  • Bulgaria has the lowest prices for rening and buying real estate of Europe
  • Bulgaria offers the possibility to buy agricultural land against very favourable conditions
  • Bulgaria doesn’t make a difference between Bulgarian and foreign investors
  • Bulgaria offers interesting possibilities to finance a company
  • Bulgaria is a member of the European Union and the principles of the single market and freedom of movement of people, capital and means therefore applies
  • Registering a Bulgarian company is possible against very competitive prices
  • The minimum capital of a Bulgarian limited company (OOD) is only 2 lev, which is about 1 euro

 

Largest amount of investments and start-ups

Who read the text above won’t be wondering why Bulgaria is a succes story and why it’s so interesting to do business in Bulgaria. The fact that Bulgaria has the largest amount of investments and start-ups makes perfect sense when considering the huge amount of possibilities offered by Bulgaria.

 

Bulgaria has pro-business politics

From left-winged to right-winged, all parties in Bulgarian politics want to keep Bulgaria the most attractive country for doing business. In 2008 big tax reforms have taken place and also the business regime and companies act have been reformed. The government has the ambition to lower the taxes even further as long as this is responsible. Bulgaria has resisted against EU tax harmonisation.

 

Bulgaria: The ultimate combination of business benefits

Low taxes, favourable labour code, lowest costs of labour, affordable start-up costs, ideal location to serve the most important markets and high accessibility are the most important factors that contribute to Bulgaria becoming the EU’s number 1 jurisdiction for internationally orientated businesses. For sure Bulgaria is already way ahead of more well-know business jurisdictions like Cyprus, Malta and Ireland and more and more companies choose for doing business in Bulgaria.

 

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