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Company formation Bulgaria
Bulgaria is a full member of the European Union (EU) and participates in the free movement of goods, the free movement of persons, services and the free movement of capital and payments.
Bulgaria has a very low tax rate compared to other EU countries. This is 10% on corporate profits and a uniform tax rate of 10% on the income of private individuals.
The biggest advantages of Bulgaria are
- - Stable currency
- - Sound public finances
- - 10% flat tax (10% tax charge regardless of the profit level)
- - Low labor costs
- - Geographical proximity
- - 0% customs duty within the European Union
- - 0% duty on trade with Turkey
- - 0% Customs Duty on Trade Some tax reliefs are available for certain industries (0% corporate tax), especially in regions with a high unemployment rate with Turkey
Contact us now!
To avoid mistakes as you set up your new company, it is essential to seek advice. We would be happy to provide you with the best advice on how to set up your company abroad. We are offering you a short, intial, free and non-binding consultation via email. It will go a long to way to help you setup your company the right way.
Tatjana Lintner
Key account manager at W-V Law Firm LLP
Tatjana Lintner
Key account manager bei W-V Law Firm LLP
Production sites are the most lucrative
Particularly suitable are investments in production facilities, since energy and labor costs as well as construction real estate are low compared to other EU countries. The infrastructure has been greatly improved in recent years by EU funding. This ensures a good connection to Europe and other countries.
The choice of location Bulgaria is particularly suitable for small and medium-sized enterprises to exploit outsourcing potential. The outsourcing of business processes is in vogue and Bulgaria occupies the 2nd place in Europe in terms of outsourcing, according to the Bulgarian Vice Minister of Economic Affairs. The possibilities are versatile no matter if it concerns services or the manufacturing industry.
European Union promotes outsourcing activities
Outsourcing business processes is not only interesting because of lower costs, but also because the European Union is promoting outsourcing activities in Bulgaria. Funding opportunities include investments in e.g. Plant buildings, plants or in machines. According to case-by-case decisions, it is possible to have these investments promoted up to 50%.
Lower labor costs
Labor costs always play a crucial role in the choice of a company. Although Bulgaria has a mandatory minimum wage, it is the lowest compared to the European Union as a whole.
The average minimum wage in Bulgaria is € 1.87 per hour or € 130.00 per month.
(As of January 2022, source: Eurostat)
The biggest mistakes when starting a company abroad
Not all topics related to founding a company abroad are always free of prejudices and false information that have prevailed over the years. We give you an overview of the most important questions about founding a company abroad.
Founding a company abroad as a citizen of another country is legal?
Founding a company abroad as a citizen of another country is legal?
Yes, in most countries foreigners can be sole shareholder of a local entity.
Do you have to live in the country where you start a company?
Do you have to live in the country where you start a company?
No you can set up a company anywhere in the world, as long as the country in question allows you, as a foreigner, to acquire shares in local companies. If this is not the case, trustees can be used. Freedom of establishment applies within the European Union. However, it is important that the management takes place locally, in the country in which the company is registered. In addition, a permanent establishment must be set up. Without this, a German tax office will not recognize the company and, in the worst case, would demand back payment of corporate and trade taxes plus late payment penalties. We rent you a real office and set up a permanent establishment that meets all requirements without a doubt. In addition, we have real managing directors who run companies in the home country and are resident there.
Problematic law firms: closure is made more difficult
Problematic law firms: closure is made more difficult
Some law firms tie clients with gag contracts and apply pressure when the client wants to close their business. If you are a client of a law firm that has set up a legally unsound company for you, you make yourself vulnerable to blackmail. Because in the event of a tax problem, law firms without a license are not bound by a duty of confidentiality.
Changing offices is made more difficult
Changing offices is made more difficult
We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. Switching to us is then often made more difficult. So horrendous final bills are made, which have to be paid before a change is possible. Therefore we have developed a trust principle. If you are not satisfied with us and want to switch, you can do so at any time. You will receive the necessary documents (resignation letter) from us in a standardized form after the foundation. This protects you from unexpected costs and you are free to go to another law firm at any time. So far we have not lost a client to another law firm.
Privacy Policy/Office Location
Privacy Policy/Office Location
Your accounting documents are safe with us. In addition, all electronic data is only stored in encrypted form and apart from us, who are bound by professional secrecy, no one has access. All accounting documents are also only stored locally. Neither authorities nor hackers can access this data.
No taxes?
No taxes?
There are certainly locations in the world that do not charge any taxes to companies and private individuals or only charge a very low flat-rate tax. However, this can rarely be used without a corresponding change of residence. If you are resident in Germany, the relevant double taxation agreement is decisive. Providers who promise otherwise will tempt you into tax evasion, which is usually severely punished if discovered. We advise you not to set up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in Germany can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous account or company no longer exists.
We comply with the following code:
- - Legally secure foundations
- - No unexpected(hidden) costs
- - No false promises
- - Finding the right solution by focusing on your requirements
With this strategy, we have been on the market since 2013 and have not disappointed any customer so far. And we prioritize it in keeping that way. We strive to ensure that every client is satisfied and does not take risks with the solutions we provide for them, but only exploits legal opportunities. Starting a company that involves doing real business is more costly than a letterbox company, but it is the only way to save on taxes without risking legal action.
Bulgaria - also attractive for Greek entrepreneurs
"Poor neighbor" - this is what Bulgaria was called earlier. On the other hand, the country is in high demand among Greek entrepreneurs, mainly because of the lower tax burden. In Bulgaria, an entrepreneur pays about 10,000 euros less than in Greece for a profit of 50,000 euros. A powerful argument that causes many to relocate their business to Bulgaria.
Bulgaria's advantages
- - Skilled workers, partly multilingual and with international experience
- - Bulgaria - perfect location for IT and electronics
- - EU funding (over € 10 billion from EU funds by 2020)
- - Easy access to the EU, Russia and the Middle East
Tax burden comparison
Here are some examples of the tax differences between a highly taxed jurisdiction versus major tax havens.
| Belgian Limited (SPRL/BVBA) | Bulgarian Limited | Malta Limited (Ltd.) | |
|---|---|---|---|
| Profit | 100,000 EUR | 100,000 EUR | 100,000 EUR |
| Corporate tax | 33% including. surcharge tax rate 3% Totally 36,000 EUR(36%) | 8,000 EUR (10% Flat-Tax) | 5,000* EUR (5%) Effectively reduced from 35% |
| Profit after taxes | 64,000 EUR | 90,000 EUR | 95,000 EUR |
| Key advantages | Strong economy, highly reputed country | 0% customs duty within the European Union. low labor costs, stable currency | Stable and growing economy, high anonymity, low start-up capital |
| STEUERBELASTUNG | 36,000 EUR | 10.000 EUR | 5.000 EUR |
Company formation Bulgaria - How it works
Starting a business in Bulgaria is easy and the founder does not have to travel to Bulgaria. For the foundation only a certified ID or passport copy and a power bill is needed. Depending on the choice of bank and also a short CV or bank reference.
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We can give you advise on choosing right jurisdiction for your business. Contact us today.
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We would be happy to advise you by telephone or email as part of a non-binding initial consultation. Please describe your request as precisely as possible and the responsible contact person will Request a free quote! with you as soon as possible.
Fabian Wilk
Member at W & V Law Firm LLP
+44. 208 089 1423-10 069. 247563060For callers from Germany (landline) [email protected] Mon to Fri 09.00 to 18.00
Fabian Wilk
Member at W & V Law Firm LLP