For foreign investors looking for development opportunities, Bulgaria could be an ideal destination due to its cheap and skilled workforce, pro-investment economy and taxation system, its geographical location and natural resources. Bulgaria is situated in the Center of Balkan Peninsula, on the road between Europe and Asia and this fact is transforming it in an appealing country for trades. The economy of Bulgaria is industrialized with a steady growing tourism sector and an advanced private sector. The country has a highly educated population, and a continuously growing agriculture oriented towards export.
Bulgarian O.O.D. (limited liability company):
- minimum share capital is EUR 1, 70% must be paid upon incorporation
- at least one shareholder of any nationality or residence
- at least one director of any nationality or residence
- shareholders can be natural persons or legal entities
- liabilities of the shareholders are in strict depending relationship with their investment in the company's capital
- local registered office
- submission of annual Financial Statements is required
Bulgarian A.D. /E.A.D (closed joint-stock company/ public joint-stock company):
- minimum share capital is EUR 25.000, 25% must be paid up upon incorporation
- at least one shareholder for E.A.D
- at least two shareholders for A.D.
- local registered office
- submission of annual Financial Statements is required
Taxation:
- corporate tax is 10% on their worldwide income
- VAT rate is 20%, but a 9% rate is applied to tourism facilities; all business with sales over EUR 25.000 must register for VAT and file corporate VAT returns
- dividend tax is 5% and dividends paid to countries in the European Union are exempt from this tax
- Capital gains are considered as standard taxable income
- Dividends distributed between resident or other EU/EEA entities are exempt from corporate withholding tax
- Business losses can be carried forward up to 5 years