services

The tax system in Bulgaria, since 2007, has been completely stable and with very minor changes that were mainly intended to serve companies. Almost everything can be done online from the Bulgarian Trade Register located at http://www.brra.bg.

The most common form of company is the LLC (or M.EPE) when it concerns one partner. The minimum required capital is 2BGN.

Corporate tax is 10% from the first leva and dividend distribution tax is 5%. Something important to be aware of is that if we distribute a dividend, we will have to declare it in our country of tax residence and, if necessary, be taxed again. We can distribute dividends whenever, however much we want.

VAT in Bulgaria is 20%. Reduced VAT exists only for tourist services and is 9%. There is no VAT on intra-Community transactions between companies registered in the VIES system.

When our company is VAT creditable then this amount is offset against any debts the company has to the public (income tax, stamps, etc.) and the remaining amount is returned in cash to the company’s bank account. If we import from a third country, we pay 20% VAT to customs and it is returned to us approximately 45 days after we have exported the products, or in three months if the products have not been sold.

Personal insurance in Bulgaria is mandatory for the president of the company. The minimum insurance amount is 89€/month, but we have the possibility to pay more money to receive a proportionally larger pension. The insurance starts from the month the company issues the first invoice. If the president of the company has insurance in another European country then he can easily be exempted from the Bulgarian insurance. Accordingly, under certain conditions, if someone is insured in Bulgaria, he has the right to be exempted from the Greek insurance company.