In 2011 Bulgaria was the 4th fastest growing economy in Europe and in 2012 even the 3rd fastest growing economy in Europe according to the statistics of the European Union.
Economic growth due to the most favorable business climate in Europe
The Bulgarian economy is growing so fast because Bulgaria has a number of unique combinations of factors that contribute to the success of the country.
- Bulgaria has the lowest taxes and the most favorable tax regime in Europe
- 10% corporation tax
- 0% corporation tax in regions with high unemployment
- 10% income tax
- 5% dividend tax
- VAT exemptions for the import of production equipment for certain investment projects
- Possibility to write off Research & Development costs
- Accelerated depreciation of 2 years on computers and means of production
- No restrictions on repatriation of capital.
Bulgaria has well-trained and qualified staff at the lowest wage costs in Europe
The large availability of qualified personnel in Bulgaria also contributes to the fact that many entrepreneurs choose to start a business in Bulgaria or make use of the many opportunities for outsourcing work or business processes. Deploying Bulgarian staff will lead to a huge reduction in total labor costs.
Starting a business in Bulgaria is affordable and accessible to everyone
The combination of low taxes and low labor costs makes Bulgaria already a country that is particularly interesting for business because it allows many business benefits to be gained by establishing a company in Bulgaria. An advantage that should not be forgotten, however, is the fact that business via
- Bulgaria is very affordable and accessible to everyone.
- Bulgaria has the lowest costs for renting or buying real estate in Europe
- Bulgaria offers many opportunities to purchase land or agricultural land on favorable terms
- Bulgaria does not distinguish between Bulgarian or international investors
- Bulgaria offers interesting opportunities for financing a company
- Bulgaria is a member of the European Union and the principle of free movement of persons, capital and goods is therefore also applicable
- The launch of a company in Bulgaria is also the most favorable rates
- The minimum capital for setting up a Bulgarian BV (OOD) is only 2 leva, which is about 1 euro
Market Approach
Direct approach to the market is not recommended due to the language and cultural barrier. There is also a considerable and complex administrative barrier. For example, documents submitted for public tenders must be drawn up in Bulgarian.
It is therefore best to work via a reliable local intermediary, with whom you already have a good relationship. Company registration service by Lorensita can help you register your company and start your own business in Bulgaria. The Bulgarian founding documents must be completed in the presence of a notary, the minimum share capital will be deposited into a bank account, the notarised documents must be registered in the Trade Register with the Registrar Agency, and finally the entity must be registered for VAT purposes.
To learn more about Bulgarian Tax and business conditions, read our infographic;
Most investments and start-ups
Whoever reads the above will not be surprised at the fact that Bulgaria is a success story and why doing business in Bulgaria is particularly interesting. Bulgaria now has the most investments and start-ups, and that is entirely logical given the many possibilities that the country offers.
Bulgaria has an active pro-business policy
The politicians in Bulgaria have a clear policy that is aimed at making the country very attractive and keeping it to (foreign) investors. In 2008, for example, a major reform of taxes, the business climate and company law took place. The current government also aims to further reduce taxes, but in a financially responsible manner. Bulgaryia is also opposed to any form of tax harmonization in the EU.
Bulgaria offers the ultimate combination for doing business in Europe
Low taxes, a very flexible labor law, the lowest wage costs, low start-up costs, an ideal location to serve many important markets and a very high accessibility have ensured that Bulgaria is fast becoming the number 1 jurisdiction for international affairs in Europe and the more well-known jurisdictions such as Cyprus, Malta and Ireland.