In times of crisis, when the whole business world is shaking and struggling with deep financial problems and shortages of all kinds, in Bulgaria there has been a very distinct increase in the starting of new businesses, as well as a considerable increase in the number of newly registered businesses from abroad. Local and international reports show evidence of the interesting fact that more and more international businesses tend to establish their headquarters in Bulgaria in order to ensure considerable tax optimisation due to the tax environment, which is the most favourable within the whole EU.

As previously mentioned, in times of worldwide recession, Bulgaria has become a strategic tax optimization center. The tax environment, rates and multiple incentives contribute greatly to international businesses of all kinds to effectively and legally reduce their tax burden and respectively it empowers them to generate greater profit and improve their financial situation. The corporate income tax in Bulgaria is at the flat rate of 10% of the net income for the respective year /annual basis/. For a comparison  the corporate tax burden in the rest of the European member states is dramatically heavier - in the UK it varies between 21-28%, in the Netherlands - 25%, in Italy - 31.4%, in Germany - varies between 14% and 17.5%, Greece - 25% etc. Basically it can be generalized that there is no lower rate level of corporate tax within the EU than the one in Bulgaria which contrasts heavily with the average European rates starting at 15% and ending at a rate of 36%! Moreover there is a possibility of 100% off this tax in case the business is situated in a region of high unemployment.

In addition to the corporate tax, the personal income tax is also at the flat rate of 10%. Additionally an important consideration for employers is that the maximum monthly taxable base for the personal income tax is at the amount of 2000 BGN.

Regarding the dividend tax it is at the rate of 0% when the dividend is being distributed between EU member residents.

Not surprisingly of course the good example set by many SMEs and big international corporations locating here has been indicative of the wisdom of this choice. While knowing that in addition to the lowest tax burden from all EU countries there is also a very fast and hassle-free company registration procedure, a flexible and modern corporate law system; financial, fiscal and banking stability, the reassurance of the EU membership a big pool of skilled workers available and the lowest costs of labor in the EU.

Another interesting subject of discussion is also the acquisition of properties in Bulgaria by foreign buyers, especially by UK citizens; which has almost tripled for the last couple of years. The expenses related to the Bulgarian Real Estates lead to a deduction in the general tax obligations and respectively contribute to assure savings on the financial resources.

Undoubtedly, in hard times like the present ones, companies which have a long-term vision, tend to plan ahead in financial terms and have the ability to be flexible and adaptable to the dynamics of the economy are more likely to save money on their operations and at the same time, not lose their competitive edge. What we at Sb Accounting & Consulting, can do for your business, is to walk you through the entire path - from setting up your Bulgarian company and get it running to the day-to-day personalised services needed for the smooth transactions and development of your business. We are the oldest and most preferred partner by foreign enterprises in Bulgaria and we are confident that the reason for that is that we have been providing for more than 22 years the Premium Accounting Services [1] in Bulgaria, Payroll Services in Bulgaria [2], Tax Services [3] in Bulgaria,  Company Registration [4] in Bulgaria, offshore incorporation, business consultation and many other services which will bring real comfort to your business undertaking in Bulgaria and will eventually contribute to a considerable improvement of your bottom line. And being a truly international provider we can also deliver all of the listed services in many of the other attractive European business locations, namely: Czech Republic, Slovak Republic, Poland, Hungary, Ukraine, Romania, Slovenia, Croatia and Serbia.

For more information and advice, please visit Accounting Services in Bulgaria [5]  or contact us at office@sb-bg.com [5]  or 0035924394140.