By Nikola Nikolov
You probably stumbled upon Bulgaria going through the map of Europe, searching for locations which are not expensive at all but still in the European Union. Bulgaria is much more than that and in more than one aspect.
Located on the Balkan peninsula with the main freeway slicing through the middle of the country – one of Europe’s best kept secrets is pretty well connected to the rest of the continent. With one of the fastest and most secure internet connections in the world – everything seems just a click or a couple of hours away. This is all good and can affect a certain part of an up and coming business, sure, but nevertheless the most important things remain – economic climate and taxation regime. And this is where it gets really interesting.
Bulgaria is a gem within the EU, holding many opportunities for growing a business or starting from the scratch.
WORK ALONG, NOT DESPITE
Bulgaria has the second lowest corporate tax rate in the EU and the most favorable and stable Income and VAT taxes – creating what specialists in the field refer to as “bestshore”. The 0% corporate tax for non-domestic legal entities if the sources are from business done outside of the country is pretty telling of the Bulgarian tax environment.
ONLY THE GOOD SIDES OF EU’S REGULATIONS
You can also apply for a VAT number – which we strongly recommend – because you will be able to take advantage of several tax reliefs but most importantly – freely trade in the EU, which is essential if you are into the field of eCommerce (insanely fast internet connection plays a vital role here).If you want to create an PLC (OOD) the minimum share capital required is 1 euro, which adds to the freedom of choosing an option which suits you. Within Bulgarian PLC’s (OOD) Directors and Shareholders can be either corporate entities or natural persons. OODs require a minimum of 1 Director and 1 Shareholder, this can be the same person or entity and they may reside anywhere in the world.