Key Benefits

Bulgaria is a European jurisdiction with one of the lowest corporate tax rates in the Eurozone area, i.e. 10%. Despite its low tax rate, Bulgaria is still included in the white lists of the FATF, the OECD and the former Soviet Union countries.

Key benefits of company formation in Bulgaria:

  • The procedure of company formation in Bulgaria is rather straight forward. One Director and Shareholder can form a company in Bulgaria. There are no restrictions for foreigners acting as a Director or a Shareholder in a Bulgarian company.
  • Extremely low income tax rate of 10%.
  • There is a favourable tax regime for Bulgarian holding companies and no tax on dividends received from Bulgarian companies or any EU subsidiary companies. The dividends received from the subsidiary companies are subject to a 10% tax rate.
  • Bulgaria has double taxation agreements with more than 40 countries.

Tax Regulations in Bulgaria

  • Income tax on legal entities (Corporate tax).
  • Companies registered in Bulgaria are obliged to pay income tax from their worldwide income. In particular, the following types of income are taxed:
  • Trade profit.
  • Dividends, excluding dividends received from Bulgarian or European companies.

Capital Gains Tax in Bulgaria

Capital gain tax in Bulgaria is imposed at 10% rate.

Source tax

The following payments are subject to 10% tax:

• Royalty.

• Interests paid to nonresidents.

• Dividends paid to nonresidents.

• Service fees (consulting, marketing and other similar fees) paid to nonresidents.

VAT (VAT)

VAT for companies in Bulgaria is imposed according to European Union directives on a VAT rate, i.e. at 20%.

Key benefits of company formation in Bulgaria:

·         The procedure of company formation in Bulgaria is rather straight forward. One Director and Shareholder can form a company in Bulgaria. There are no restrictions for foreigners acting as a Director or a Shareholder in a Bulgarian company.

·         Extremely low income tax rate of 10%.

·  here is a favourable tax regime for Bulgarian holding companies and no tax on dividends received from Bulgarian companies or any EU subsidiary companies. The dividends received from the subsidiary companies are subject to a 10% tax rate.

·         Bulgaria has double taxation agreements with more than 40 countries.

 

Tax Regulations in Bulgaria

Income tax on legal entities (Corporate tax).

Companies registered in Bulgaria are obliged to pay income tax from their worldwide income. In particular, the following types of income are taxed:

• Trade profit.

• Dividends, excluding dividends received from Bulgarian or European companies.

Capital Gains Tax in Bulgaria

Capital gain tax in Bulgaria is imposed at 10% rate.

Source tax

The following payments are subject to 10% tax:

• Royalty.

• Interests paid to nonresidents.

• Dividends paid to nonresidents.

• Service fees (consulting, marketing and other similar fees) paid to nonresidents.

VAT (VAT)

VAT for companies in Bulgaria is imposed according to European Union directives on a VAT rate, i.e. at 20%.

 

Take the next step, we are here to help.

Register a Bulgaria company.
Open a Bulgaria bank account.

  Resources:

 

The Investigation of a Cyprus Company's Affairs: Application of the Law & Effectiveness

At the request of a Cyprus company’s Shareholder, where it is proven that a more comprehensive investigation is required regarding a company’s activities, the court can issue a declaration of investigation by an inspector appointed by the Cyprus Council of Ministers. The discretion of the court must be applied carefully; as such an order can heavily impact a company and depending on the outcome of the investigation, can be a severe measure that deviates from fundamental principles of Cyprus company law.

UK: The Current Problems with Money Laundering & the Violation of Anti-Money Laundering Regimes

UK: The Current Problems with Money Laundering & the Violation of Anti-Money Laundering Regimes

The fact that money can be transferred from one jurisdiction to another means, that money laundering as a concept involves the entire modern world. Money laundering is a process during which the origin and purpose of payments are hidden and typically has three stages.

Director’s Duties & Liability Insurance in Cyprus

Director’s Duties & Liability Insurance in Cyprus

This article will examine the role of a Director and his duties and liability insurance and D&O insurance liability accordingly with reference to the relevant case law.

 

Q&A: Singapore Small Company Concept for Audit Exemption

The following article will answer some commonly asked questions regarding Singapore small company auditing requirements and exemptions from ACRA.

Exemption from Audit: Singapore Small Company Criteria

Exemption from Audit: Singapore Small Company Criteria

Singapore Audit Requirements: running a company in most countries require auditing as a process to prove that everything is operating legitimately. Listed companies have a legal responsibility to go through audit in Singapore similarly.

EU: Cyprus Competitive Advantage at Risk with Tax Consolidation Reforms

EU: Cyprus Competitive Advantage at Risk with Tax Consolidation Reforms

Cyprus is likely to have repercussions as a result of Jean-Claude Juncker ’s favouring of a relaxation in EU regulation formation and monitoring schemes, reinforced by qualified majorities on matters including the additional synchronisation of blanket taxation rates across Europe.

Singapore Service Providers: How to Comply with the ACRA Reporting Requirements

Singapore Service Providers: How to Comply with the ACRA Reporting Requirements

As a result of the ACRA Amendment Act in 2014, Registered Filing Agents and Corporate Service Providers now have to conduct independent Anti-Money Laundering / Countering the Financing of Terrorism (AML/CFT) reviews as part of their annual audit reviews.

Beginners Guide to Service Level Agreements: Important Information & Q&A

Beginners Guide to Service Level Agreements: Important Information & Q&A

SLAs are a critical component of any outsourcing and technology vendor contract. Beyond listing expectations of service type and quality, an SLA provides remedies when requirements aren't met.