Due to the COVID-19 crisis the Bulgarian government adoption at a second reading in the Value Added Tax Law (VAT) the rate for foods, recommended for babies and small children, baby diapers and baby hygienic products. Another sector that is also adopting the new rate reduction is books.

The reduced rate comes in effect from the 1st of July 2020 and will be active at least until the 31st of December 2021.

The newly reduced rate will be 9% for deliver of books on physical carriers, or on an electronic versions.

This applies also to workbooks and textbooks, children books and coloring sets.

The new rate also applies for accommodation at hotels and such establishments including also establishments for vacations.
Trailer renting and the trailer parks and caravans will also benefit from the newly elected law.

The rate also applies to all restaurant and catering services which consists of delivery of previously prepared or non-prepared food.

This we believe gives investor another incentive to register a company in Bulgaria.

This new incentives couples with one of the lowest corporate tax rates in Europe at just flat 10% from the net profit. This will provide businesses with a competitive edge over their rivals.

Using our online service we can assist you in registering your company in Bulgaria including all accounting and legal aspects of the procedure.
This comes from 22 years of experience in the field of corporate law and services.

With our dedicated team of lawyers, accountants, solicitors and economists we can assist you in every step of the way.

Do not hesitate to contact us the initial consultation is always free of charge for you.

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This is a question that we get very often in the requests from our website www.companybulgaria.com

This is why in this article we would like to share our experience as to why registering a company in Bulgaria is going to be a profitable and successful move for your business. We draw on 22 years of experience in the field.

Research shows that in the countries from central and western Europe, corporate tax can go as high as 60%.

On the contrary in Bulgaria there is a flat corporate tax of 10%, and a personal tax of 10%.

Furthermore, these are funds that can be directly re-invested back into your business. Thus bringing you one step ahead of your direct competitors. Making you meet your clients needs better and faster.

The second question that comes to mind is how can this be done?

Especially if you are starting your business now. Perhaps you have only been an employee and this is complete new field for you. Thanks to modern innovation in internet security it is now possible to complete the whole process online.

This means that you can register a company in Bulgaria without ever visiting the country.

This way you will be able to take advantage of the best tax jurisdiction in Europe. Additionally, as per Bulgarian law you will also receive a bank account. This gives you access to the European financial system.

Your bank account will be accessible only from you and can be managed remotely without limitations.

Does this sound like something you are interested it? Let us help you make your business better. Our team of lawyers, accountants, barristers and economist will provide you with the best solution. The first consultation is always free of charge.
Contact us. 

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To Register company in Bulgaria – is there any real benefit?

The size of the corporate tax in Bulgaria is 10% and this is something that sounds great. But there are also other countries where the corporate tax is also low. For example, in Poland, Cyprus, Estonia and Romania. Why is everybody saying then that it is a great advantage to register a company in Bulgaria? The answer to this question lies in the size of the dividend tax in Bulgaria. It is only 5% and it is non-related to the amount of the net profit that is being distributed. In Europe and also in the world this is one of the lowest rates for the dividend tax, excluding only some offshore jurisdictions.

TO TRANSFER THE CORPORATE PROFIT INTO PERSONAL WEALTH VIA BULGARIAN COMPANY REGISTRATION!

As a whole the policy of most countries is of a restrictive nature in relation to the distribution of the companies profits and the transferring of the corporate profit into a personal wealth. We will not engage ourselves into an analysis as to why this is the case but it is a fact. Complicated legal schemes are used in the inheritance of businesses and corporate assets, in order to avoid the inheritance tax. All of these issues can be avoided by the registration of the Bulgarian Holding Limited Company to which will be redirected all turnover and business operations of the investor. Here we are not discussing a hollow company – a postbox firm type! Here we are discussing a real business in Bulgaria, and this can be achieved without much efforts. This is especially true for companies with mainly commercial activities.

WHAT TYPE OF BULGARIAN COMPANY TO BE CHOSEN WHEN WE DECIDE TO CREATE A HOLDING STRUCTURE IN BULGARIA?

In practice every single capital company in Bulgaria is suitable for conducting of international commercial activity, and the distribution of its profit under the form of dividends. When the investors are less than 10, the most suitable legal for is a Limited Liability Company (OOD in Bulgarian). In this type of a commercial entity the connection between the shareholders themselves and between the shareholders and the company is much stronger. Every one of the shareholders is actively involved in the running of the company, as every important questions and matter is decided in the common shareholders meeting.  If we accept this as a negative, then the biggest plus of this type of companies is the higher degree of protection of the rights of the shareholder. All disposal actions with the company shares can be performed only with a notary certification of the signatures, giving the highest degree of security over the ownership of the company shares.

IS IT EASY FOR THE INVESTOR TO SALE HIS/HER SHARES AFTER THEY REGISTER COMPANY IN BULGARIA?

It all depends on how the Bulgarian Company is organized. It is very important the precise selection of the legal company that will consult and oversee the process of the company formation in Bulgaria. A Bulgarian Law firm with experience in the specifics of corporate and commercial law, as well as deep knowledge in the areas of taxation and accounting. The corporate contract should be drafted in lieu with the future development of the relationships between the shareholders. If they are residents of different countries and are separated from on another, the disposition transactions of the shares should be relieved in order to facilitate the incorporation and the transferring of shares in the Bulgarian Trade Register.

For more information please visit: https://bulgarianlaw.co/en/open-company-in-bulgaria/

Do not hesitate to contact us the first consultation with a lawyer is always free of charge for you. 

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A common question we receive on our website and through our contacts. What are the options for obtaining a Bulgarian Passport.

Being a lawyers corporation with 21 years of experience in the field we would like briefly describe the opportunities available for obtaining a Bulgarian Passport or a Bulgarian permanent residence.

There are three options and each one will be described below in detail:

I.                 Investment in a Real Estate Property in amount of 600 000 BGN (approx. 305 000 EUR)

The investor registers a company in Bulgaria where he owns minimum 51% of the shares.

The company then purchases a real estate property for the amount of 600 000BGN (approx. 305 000 EUR). On the basis of this investment the individual can apply for a long term residence.

II.               Permanent Residence and a Bulgarian Passport through investment in Bulgarian government bonds.

The investor invests the amount of 1 000 000 BGN (ca. 512 000 EUR) into Bulgarian government bonds.

On the basis of the investment the investor is given a permanent residence status. At this point the investment is doubled for another 1 000 000 BGN (ca. 512 000 EUR) and in ca.2 years from the first investment the client receives a Bulgarian Passport and citizenship.

III.             The third option is to open a company with a minimum of 10 Bulgarian employees on its payroll.

After incorporation a company with a minimum of 10 Bulgarian employees you are allowed to bring one foreign worker that will be granted a residency status in Bulgaria.

IV.          The fourth option is to form a Bulgarian Company whose shares are not traded on the regulated stock exchange market, for with a registered capital equal to or greater than 6 000 000 BGN. 

We at Legacon can provide you with full assistance in the process, legal representation and preparation for all legal procedures and documentation drawing on 20 years of experience.

Don’t hesitate to contact us. The initial consultation is always free of charge.

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written by Mr. Daniil Kuriyan – COO at Legacon Law Company

In this article we would like to go through the options of obtaining a residence and citizenship through the citizenship investment programs as described in the Bulgarian Law.

        I. Investment in a Real Estate Property in amount of 600 000 BGN (approx. 305 000 EUR)

•      The investor registers a company in Bulgaria where he owns minimum 51% of the shares.
•      The company then purchases a real estate property for the amount of 600 000BGN (approx. 305 000 EUR)
•      On the basis of this investment the individual can apply for a long term residence.

        II. Permanent Residence or Citizenship through investment in Bulgarian government bonds.

• The investor invests the amount of 1 000 000 BGN (ca. 512 000 EUR) into Bulgarian government bonds. On the basis of the investment the investor is given a permanent residence status.

• At this point the investment is doubled for another 1 000 000 BGN (ca. 512 000 EUR) and in ca.2 years from the first investment the client receives a Bulgarian Passport and citizenship.

III. The third option is to open a company with a minimum of 10 Bulgarian employees on its payroll. Then you are allowed to bring one foreign worker that will be granted a residency status in Bulgaria.

We at Legacon can provide you with full assistance in the process, legal representation and preparation for all legal procedures and documentation drawing on 20 years of experience.

Don’t hesitate to contact us. The initial consultation is always free of charge.

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What are the main advantages and disadvantages of owning a Bulgarian Company?

What are the main Advantages and Disadvantages of owning a Bulgarian Company? This is a frequently asked question on our website and customer support staff.

Therefore, in this article we would like to go over some of the main things that one may face when considering Register a company in Bulgaria. These are all drawn from our 20 years of experience in the field.

First it is the stable economic environment.

The economy in Bulgaria has been growing with a steady pace from the past 5 years. Something that should show investors certainty and predictability for their future business endeavors. Something that should be of supreme importance for all business owners.

The second major factor are taxes.

With a flat corporate tax of 10% from the net profits and income tax of 10% the country is currently the tax haven of Europe.

Therefore, by registering a company in Bulgaria investors and business owners can take advantage of this tax jurisdiction. This will allow them to gain a significant advantage over their competitors.

So what are the disadvantages of such a decision?

If you do not speak the language or you are not familiar with the legal system a move of this kind may seem worrisome. However, there are legal companies who are experienced and offer clients the service to incorporate a company in Bulgaria remotely without the clients even having to visit the country.

At Bulgaria Law we have 20 years of experience in the field and a dedicated team of lawyers, accountants, solicitors and economists. We can help you at every step of the way.
We can help you register a company in Bulgaria!

Let us assist you in making the best move for your business. Contact us.

More information about our company and team can be found on our corporate web site.

If you have any further questions please use the contact button or call us for free.

REGISTER A COMPANY IN BULGARIA

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Is Offshore or onshore better for your business?

Should you be interested in moving your company and assets? Offshore or Onshore which is the best solution for your business?

As it has been the case for some time offshore jurisdictions have always pertained some interest to investors. In the past there were some offshore jurisdictions that provided viable options with laws that were strict enough along with a stable banking system.

But is this still the case now days? Is an offshore jurisdiction still the best option if you are interested in optimizing your taxes payable?

Following the major scandal with the so called “Panama Papers” and its follow up we believe they are not anymore. At the time of writing this article it is mainly considered by government bodies that if one is to use an offshore jurisdiction it is for a tax avoidance purpose. Even if this may not be the case.

There is however a solution that can be found for this!

Bulgaria currently has the most favorable tax jurisdiction in the world.

The country has introduced a flat corporate tax of 10% from the net profit as well as a flat income tax of 10%. These will provide business owners with the best way to 100% legally minimize their taxes payable and gain a competitive advantage over their direct competitors.

The next question that one should ask is how can this be achieved?

Thanks to modern advances in internet security it is now possible to complete the whole process remotely. This includes full company incorporation, bank account, receipt of all corporate certificates etc.

AtBulgarian Law we have a dedicated team of lawyers, solicitors, accountants and economists that can assist you in every step of the way.

Let us help you make the best decision for your business. The initial consultation is always free of charge for you. Contact us.

More information about our company and team can be found on our corporate web site.

If you have any further questions please use the contact button or call us for free.

REGISTER COMPANY IN BULGARIA

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Should you be starting a business in Bulgaria?

Why should we be interested in starting a business in Bulgaria? This is a question that is often asked through our contact form and phone line support.

The main reason for this interest is that people are wondering what made the small European Country so popular among investors.

Firstly we should mention the country`s stable economic environment.

Bulgaria’s GDP has been steadily growing in the past 5 years. Furthermore, the country is one of the most efficient ones among they entire EU in employing its growth stimulating programs that are designed for new members.

The next major reason is the tax system.

Bulgaria currently has the most advantageous tax system in the European Union and one of the most advantageous ones in the world. With a flat corporate tax of 10% from the net profits and a flat income tax of 10% it is designed in a way to stimulate business owners in best optimizing their taxes payable and investing back into their business and the economy.
As a comparison in most Western and Central European countries taxes can reach as high as 60%.

Having a stable economic environment and a stimulating tax system are a major factor but not enough for most. Therefore, the last factor we would like to focus on is the Banking System.

As a part of the EU the banking system in Bulgaria was subjected to a stress test, which was passed by all banks.
Additionally, all banks showed to be highly liquid assuring investors they are able to sustain any outside pressure.

The Three factors explained above have all made Bulgaria a very preferable place for investors to start or move their company.

Can this be achieved if you are not a Bulgarian citizen or present in the country?

By choosing a reputable partner such as Bulgarian Law you will be able to complete the whole incorporation process remotely. Our dedicated team of lawyers, accountants and economist with over 20 years of experience can assist you every step of the way.

Let us help you take your business to the next level. First consultation is always free of charge for you. Contact us.

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More information about our company and team can be found on our corporate web site. 

If you have any further questions please use the contact button or call us for free.

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