faq
1) Why a company in Bulgaria?
• Easy setup process
• Very low taxation
• Stable, fair and secure tax system
• Intra-Community transactions (within the EU) with VAT exemption
• Low insurance premiums
• Low personnel costs
• Low cost of maintaining a physical office
• Acquisition of real estate in the name of the company
• Acquisition of vehicles in the name of the company with very low annual maintenance costs
• Easy access from Greece
2) Is it necessary to have a physical address in Bulgaria?
According to Bulgarian legislation, you do not need a physical seat, we can host your company in our offices. However, in recent years, laws have been passed in Greece making the physical seat in Bulgaria mandatory.
3) I want to build an e-shop, can I use the Bulgarian company for transactions?
Of course, you can sell your products through your e-shop all over the world as long as these products are stored and shipped from Bulgaria.
4) If I buy products from Greek companies to my Bulgarian company, will I pay VAT?
No, as long as the Greek company from which you buy the products has the right of intra-Community transactions.
5) I have a business in Greece and I want to open one in Bulgaria as well, can I be exempt from the insurance contributions in Greece?
You can on the condition that you have a residence card in Bulgaria, the turnover of the Bulgarian company is greater than the Greek one and also that at least 25% of your company’s turnover is within Bulgaria.
6) Can I drive the car of the Bulgarian company in Greece?
Yes, as long as your company is active (has a turnover) and you have a physical seat in Bulgaria.
7) If I issue an invoice from my Bulgarian company to a Greek one, will the customer pay VAT?
No, since the customer’s company has intra-community trading rights, neither you nor the customer will pay VAT. If the customer is an individual or his VAT number is not intra-community, then he will pay 20% VAT which will have to be attributed to the Bulgarian tax authorities.
8) In money, how much profit will I get annually?
We cannot answer with specific numbers what you will earn annually, but we can give you an example of a business that owns an 1800cc car and gross profits of €20,000.
| Greece | Bulgaria | |
| Gross Profit | 20.000 € | 20.000 € |
| Annual fee | -5.800 € | -2.000 € |
| Insurance contributions | -4.000 € | -1.068 € |
| Cost Accountant | -960 € | -960 € |
| Seat Cost | -3.600 € | -600 € |
| 1800cc car cost | -800 € | -250 € |
| Net annual profit | 4.840 € | 15.122 € |
9) Can I have several activities with one company?
Yes, in Bulgaria there is no term “K.A.D.” as it exists in Greece. In the company’s articles of association we define that the company can make any transaction. Exceptions are professions that require special licensing (eg tourist office, transport company).
10) How long does the company establishment process take?
It usually takes 5 days for the Bulgarian TIN to be issued. and another 15 days for the registration of the company in the VIES intra-community system.
11) What supporting documents are needed for the establishment of the company
• Color Photocopy of Identity Card or Passport with Latin characters
• Address
• Telephone
• E-mail
• Company Name
• Basic purpose of the company
• Copy of your latest bank statement
• An account that proves your permanent residence
12) I owe in Greece to a public and insurance fund, can I open a company in Bulgaria?
Yes, no problem.
13) Is there any disadvantage to a Bulgarian company?
The only drawback is that we cannot have a physical headquarters in Greece, therefore we cannot have a retail store.
14) Is there an advance tax in Bulgaria?
Yes, in case the company exceeds BGN 300,000 (€153,000) in turnover, then it is liable to advance tax.