If you have decided to set up a company in Bulgaria and run your own business, you should be familiar with the basic taxation rules in the country. The information hereinafter might be valuable to you no matter the scope and area of your business activities.
The corporate tax in Bulgaria is 10%. Certain companies are not subject to this taxation, e.g. those which have been established upon a dedicated investment purpose.
The corporate tax of 10% applicable to the corporate profit might be subject of omission provided the profit has been sourced by stock sales on a regulated Bulgarian or EU stock exchange.
The dividend tax in Bulgaria is 5%. Upon its payment the shareholder or company owner is entitled to adopt the profit in his private wealth whereas he can repatriate it abroad without further homeland taxation.
The value added tax in Bulgaria is 20%. VAT excluded is the export of goods and services within the EU and to third countries provided the buyer is subject to applicable VAT registration in the respective country. Hotel services are being taxed by discounted VAT rate of 9%. The regular VAT refund is being processed within a two-month period.
The real estate tax in Bulgaria ranges between 0.01% and 0.45% whereas one off taxation of 0.1% to 3% upon real estate acquisition are due. Forest and agricultural land are not taxed.
The Bulgarian trade law institutes a regular Ltd. (2 or more shareholders) and solely owned Ltd. (single owner) by a natural or legal entity. The owners will be liable up to the amount of their shares.
We can prepare all required documents for signing in at the registration agency.
The shareholders are to provide the following:
- ID or passport copy
- Unique company’s name
- Capital /min. 2 BGN for a Ltd.and 50.000 BGN for a JSC/
- Company’s address (we can provide one upon a relevant remuneration);
- Share’s division in case of multiple ownership
The registration of a limited liability company is to be filed at the Registry Agency and is being processed within 1 week.
The registration fee amounts 250 BGN.