- EU Member State country from 1st of January 2007
- Strong economic growth
- Strategic geographical position between Europe, Middle East and Asia
- Strong currency fixed against the EURO by the Bulgarian currency board
- 2 year VAT exemptions for all companies importing goods for more than 5 million EURO’s
- Low investment cost with low cost of rent and utilities
- Competitive labour cost favourable for foreign investments
- The lowest corporate tax rate in the European Union – 10% flat rate
- Personal Income Tax – 10% flat rate
- Withholding tax is 10%
- Withholding tax on dividends and quotas is only 5%
- 5% tax for income from interest, royalties or any license fees if the following conditions are met as established by the Bulgarian Investment representative:
(1) The beneficiary of the income is a foreign legal entity from a EU Member State or a permanent establishment within a EU Member State of a foreign legal entity from a EU Member State;
(2) The resident legal entity being the payer of the income or the person whose permanent establishment within Bulgaria the payer of the income is a affiliated to the foreign legal entity which is the beneficiary of the income or to the person whose permanent establishment is the beneficiary of the income.
- Value Added Tax – 20%, hotel services are levied on 9%. VAT registration mandatory for individuals or corporations with taxable income, bigger than BGN 50,000 p.a.
- The Bulgarian government has signed Double Taxation Treaties with more than 60 countries around the World, some of them: Greece, Italy, Portugal, Cyprus, Croatia, France, UK, Switzerland, USA, United Arab Emirates, Qatar, Turkey, Spain, Russia, Romania, China, Germany and many others.