Bulgaria is a very beautiful country with hospitable people, but there are even stronger arguments why you should consider starting a company here:
1. The tax system. The tax rate is 10%, the lowest among all EU Member States.
2. The qualified and cheap working force. The absolute minimum of the salary is around 255 euro per month, four times lower than that in Greece.
3. The cheap cost of living. Bulgaria is the cheapest country in the European Union in terms of food, clothing and real estate.
4. The short distance between Bulgaria and Greece. Bulgaria is the only member of the EU that has borders with Greece and Turkey which turns the country into an entrance to the EU.
Thanks to the tax reform of 2007, the state strives to promote entrepreneurship and a transparent and well-working tax system in line with the EU regulations. With this reform, the progressive tax system is replaced with flat tax 10% which applies to the taxation of the companies.
Personal tax: 10% (flat tax)
Corporate income tax: 10% (flat rate)
5% tax on dividents
Value Added Tax (VAT) 20% and 0 for export and intra-EU acquisition of goods
Obligatory register under the VAT taxation law only in the following cases:
– Turnover over 50 000 lv. (€ 25,000)
– Intra-EU acquisition of goods over 20 000 lv. (€ 10,000)
– Long-distance sale over 70 000 lv. (€ 35,000)
There are excise duties on alcohol, tobacco products, luxury automobiles, electricity and petrol.
Municipal councils, in the framework of law, decide on the exact amount of the local taxes:
– Municipal tax on the immovable property from 0.5% to 2%
– Local tax for transfer of property from 1,3% to 2,6%
Bulgaria has signed Double Tax Conventions (DTCs) of avoidance of double taxation. Greece and Bulgaria have signed convention for the avoidance of the double taxation in relation to income tax and capital tax. (Act 2255/1994, Official Gazette 195/18.11.1994).
Low tax rates
Cost of living