There are many reasons why setting up a business in Bulgaria is a fantastic idea. Firstly, many foreign nationals looking for new markets are now interested in Bulgaria. Startup founders are now setting up businesses in the country because it makes a great alternative to other popular destinations such as the UK, France, and other countries in the EU.
Secondly, Bulgaria’s capital, Sofia, is quickly becoming the Silicon Valley of Europe ever since tech startups started pouring into the country with tech solutions and software developments. If Bulgaria sounds like a place where you would like to set up your business, then you should check out our guide to setting up a business in the country.
Why is Bulgaria great for business?
Favourable tax regimes
Bulgaria has one of the most business-friendly tax regimes in Europe. Corporate income tax is pegged at a fixed rate of 10% per year which is one of the lowest in Europe. Capital gains tax is 5%. What this translates to is that you pay less than 15% tax on your company income yearly.
VAT is set at 20% for the purchase of goods and services, while tourism only attracts a rate of 8%.
Access to the European market
This offers a great opportunity for setting up a business in Bulgaria. Businesses in Bulgaria benefit from free markets like any other company registered in Bulgaria. There are zero taxes on exports and imports within the EU, which is an advantage for startups.
Skilled labour market
If you are setting up an IT business then you will have access to a pool of talented employees with relatively low wages when compared to other countries in the EU. Also, the EU free market allows you to transfer skilled employees from other EU member countries.
Ease of doing business
Registering your business is quite easy, especially if you seek the help of a lawyer or a law firm with experience in settling new businesses. Getting your business registered in Bulgaria takes only about a week, and you can get it done while in another country. You need legal representation in Bulgaria (Sofia) from Oikonomakislaw.com to help you get your business registered with ease.
Setting up a business is affordable
Registering a business in Bulgaria is affordable. You are only going to spend about 150 Euro to complete your business registration. The minimum capital required for the founding of a limited liability business is only 1 euro. You will also get access to affordable accounting services and you can employ an accountant for less than 40 euro per month.