3. T A X P L A N N I N G
What are the benefits of a company in
Bulgaria? You need to set up a new business
or to invest in Bulgaria or YOU JUST
WANT TO BENEFIT FROM THE LOWEST
TAXATION WITHIN THE EU?
Bulgaria has become a very popular
jurisdiction for tax optimization and running
businesses due to many internal and external
factors.
10 Reasons to choose Bulgaria:
Tax Benefits
Most favourable Tax Regime within the EU.
Corporate Profit tax (flat) - 10%. Personal
Income Tax (flat) - 10%. Lowest Social
Security Contributions in EU. Bulgarian
legislation is completely synchronized with
the EU legislation. Government policy is
focused on building a favourable business
climate for foreign investors.
Fast and easy procedures
It takes only several days to register a new
company in Bulgaria. The minimal start-
up capital is only 1 EUR. International VAT
registration takes up to 10 days. Less rules
compared to Western Europe.
Banking facilities
The biggest European banks are represented
in Bulgaria. Perfect E-banking facilities.
Stable and secure Bank system.
Double tax avoidance
Bulgaria has signed Double Taxation Treaties
with 70 countries all over the world.
Political Stability
Safe and stable democratic jurisdiction. Low
crime rate, no ethnic tensions. Full member
of the EU, WTO and NATO. Second lowest
government debt in the EU. Government
policy is also focused on building a
favourable business climate for foreign
investors.
Less Financial Risk
The local currency Bulgarian Lev (BGN) is
fixed to the EUR (1 EUR = 1.9 BGN) since 1998.
Bulgaria is expected to introduce the EUR as
its official currency in next few years.
Low business costs
The lowest business costs in the EU. Very
affordable rents, excellent value for real
estate. Low cost of utilities.
Investment Opportunities
Less restrictions and less administrative
procedures. Investors class A are granted with
Corporate Profit Tax up to 0%. Bulgaria is rated
as one of the best destinations in Europe to
develop outsourcing activities.
Lowest labour cost in the EU
Highly trained and qualified employees.
English is widely spoken.
Perfect location
Situated on the main road between Europe
and Asia and in the centre of the Balkan
Peninsular, Bulgaria is more than a good
business choice. There are 4 Pan-European
transport corridors that cross the country
and make their connection in Sofia. You are
in Europe and in 3 hours in Brussels, London
or Paris.
www.ZaraConsult.com
4. T A X A T I O N
Corporate Profit Tax (flat) 10%
Personal Income Tax (flat) 10%
Dividend Tax within EU 0%
Dividend Tax Third countries and individuals 5%
VAT within the EU 0%
Local VAT 20%
There are no restrictions to foreign ownership. Capital and dividends can be
freely repatriated. Liberal business environment.
Type of company Limited
Type of law Civil
Minimum annual state fee -
Requirement to file accounts Yes
Standard minimum paid-up capital EUR 1
Minimum number of directors 1
Publicly accessible director’s register Yes
Minimum number of shareholders 1
(a person or
a company)
Publicly accessible shareholder’s register Yes
Taxation
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5. D O U B L E T A X A T I O N T R E A T I E S I N F O R C E
Austria Iran Qatar
Albania Ireland Republic of Korea
Algeria Republic Israel Republic of South Africa
Armenia Italy Romania
Azerbaijan Japan Russian Federation
Belarus Jordan Singapore
Canada Kazakhstan Slovakia
China Kingdom of Bahrain Slovenia
Croatia Kingdom of Belgium Spain
Cyprus Kuwait Sweden
Czech Republic Latvia Switzerland
Democratic Republic of
Korea
Lebanon Syria
Denmark Lithuania Thailand
Egypt Luxembourg Turkey
Estonia Macedonia UAE
Finland Malta Ukraine
France Moldova United Kingdom
Georgia Mongolia USA
Germany Morocco Uzbekistan
Greece Netherlands Vietnam
Hungary Norway Yugoslavia
India Poland Zimbabwe
Indonesia Portugal
6. The most popular structures for
foreigners entering Bulgaria
Private Limited Liability Company (Ltd)
Joint Stock Company
Branches
Representative offices
Foundations
The main features of a Private
Limited Liability Company (Ltd)
The minimum threshold of share
capital – EUR 1.
at least one shareholder needed (a
company or a private person)
one director required (individual)
the director can be a local or foreign
person
company registration takes 3 days
To assists its customers, Zara
Consult provides
We provide a full range of services in
relation to the registration and main-
tenance of Bulgarian Companies so
that you can only benefit by taking full
advantage from one of the best Tax
Regimes in Europe.
You can also benefit a readymade com-
pany, professional directors, registered
office premises and start operating im-
mediately.
Corporate Maintenance Services
Company Incorporation
Registered and postal address
Professional Managers
Secretarial Services
Back office activities
Bank introduction
Corporate Bank Accounts
Your personal E-banking
Corporate VISA and MASTER Cards
International SWIFT transfers
Private Banking and Financial Services
Accounting services
Auditing
Tax returns
VAT returns
COMPANY INCORPORATION IN BULGARIA
7. Our limited liability company
incorporation package includes:
Preparation of all the necessary docu-
ments in 2 languages
Payment of all government fees for the
registration;
Submission of all documents in the
Bulgarian Trade register;
Opening start-up capital bank account
with the minimal required equity capital
of 2 BGN (1 EUR);
Opening current bank account with
personal e-banking;
Issuing company stamp;
Certificate for good legal standing;
EU VAT registration
Registered office for 1 year
To assists its customers, Zara
Consult provides a full range of
Accounting Services in Bulgaria:
Bookkeeping & Accounting
VAT
Fixed Assets
Capital Gains
Payroll Services
Banking
International Management Reporting
Services
Statutory Reporting
Annual Financial Reports
Tax Filing
Annual planning & Budgets
INTERNATIONAL COMPANY WITH A
BUSINESS IN BULGARIA
To assists its customers, Zara
Consult provides Audit Services
in Bulgaria:
Due Diligence
Corporate Investigations
Internal Audit
Independent Audit
To assists its customers,
Zara Consult provides
Business Advisory in Bulgaria:
Tax Legal Consulting
Business Consulting
Financial Consulting
www.ZaraConsult.com
8. SHAREHOLDER
EU COMPANY
(0% DIVIDEND TAX) (5% DIVIDEND TAX)
SHAREHOLDER
INDIVIDUAL
(5% DIVIDEND TAX)
SHAREHOLDER
THIRD
COUNTRY
CLIENTSUPPLIER
BULGARIA
TRADING
COMPANY
(10% PROFIT TAX)
GOODS DIRECTLY DELIVERED
BULGARIA
TRADING COMPANY
The Bulgarian trading com-
pany purchases and sells goods
or services
The goods or services are di-
rectly delivered by the supplier
to the final client
As a result the profit is
transferred into the Bulgarian
company, where profit is taxed
at 10%
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PERSONAL
INCOME TAX 10%
CORPORATE
TAX 10%
FLAT RATES
DIVIDEND
TAX 0-5%
SINCE 2007
9. SHAREHOLDER
THIRD COUNTRY
EU SUBSIDIARY
COMPANY
BULGARIA
HOLDING COMPANY
Salaries
10% tax
Personal spending
5% tax
Dividend
5% tax
Dividend
SHAREHOLDER
INDIVIDUAL
CLIENT
(EMPLOYER)
BULGARIA
CONSULTANCY COMPANY
NO PROFIT
Salaries
10%tax
Personalspending
14.5%tax
Transfertothird
countries14.5%tax
SERVICE
DIRECTLY
PROVIDED
BULGARIA
CONSULTANCY COMPANY
The services are directly provided to
the client/employer, but the Bulgarian
company issues the invoices and col-
lects the income
The individual owner can receive a
salary from his Bulgarian company,
which is taxed at 10% in Bulgaria
The individual owner can make
personal spending from the Bulgarian
company, which will be taxed at 14.5%
in Bulgaria
The individual owner can transfer
funds to third countries (non EU),
which will be taxed at 14.5% in Bulgaria
BULGARIA
HOLDING COMPANY
Bulgarian holding company has
shares in subsidiaries in EU.
Dividends, received by the holding
company are tax exempt
The Bulgarian company can pay sala-
ries to its Director, which will be taxed
at 14.5% in Bulgaria
The Bulgarian company can allow
personal spending of its director, which
will be taxed at 5% in Bulgaria
The Bulgarian company can pay
dividend to the third country mother
company, which will be taxed at 5% in
Bulgaria.
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