Bulgaria offers a set of benefits like low corporate income tax, double taxation avoidance agreements, white-listed jurisdiction, European status, European VAT reverse charge mechanism, loyalty to transactions with other offshore companies, perfect location and high-quality real estate.
The most common types of Bulgarian company formation are as follows:
- Individual entrepreneur. An individual entrepreneur can be both a resident of Bulgaria, as well as a foreign citizen with a residence permit.
- Limited liability company (Ltd. – Either sole-owned (EOOD) or with multiple shareholders (OOD). The minimum authorized capital is 2 BGN (equivalent to about 1 EUR).
- Joint Stock Company. This more complicated business structure is not widely used. The minimum authorized capital is at least BGN 50 000. There should be at least one shareholder, either legal or private person. The minimum cost of one share is 1 BGN.
Legal entities working in Bulgaria (OOD, EOOD, AD, EAD,) pay the following taxes:
The corporate tax rate for Bulgaria is 10%. The tax base is calculated as the difference between corporate income and expenses. There is no specific requirement of costs that should be included.<