Investing in Bulgaria can be a good opportunity due to the growing economy and low tax rates, but ultimately it’s a decision that will depend on your specific investment goals and risk tolerance.
Some advantages of investing in Bulgaria include:
- – Low corporate tax rate of 10%, one of the lowest in the European Union
- – European Union membership and access to the EU market
- – Relatively low cost of doing business
- – Favourable tax system for foreign investors
- – Growing industries such as manufacturing, energy and tourism
- – Free trade agreements with several countries
10% corporate tax:
Bulgaria has a flat corporate tax rate of 10%, which is one of the lowest in the European Union. This rate applies to both domestic and foreign companies doing business in Bulgaria. In addition, Bulgaria has a value added tax (VAT) rate of 20%, which is also relatively low compared to other EU countries.
This low tax rate is part of Bulgaria’s efforts to attract foreign investment and promote economic growth. However, it should be noted that there are some limitations and qualifications for companies wishing to benefit from the 10% tax rate. For example, companies must meet certain criteria in terms of their registered capital, number of employees and annual turnover. In addition, certain industries, such as banking and insurance, are subject to higher tax rates.
Bulgaria’s low tax rate makes it an attractive destination for foreign investment and business start-ups, but it is always best to consult a local tax expert to understand all the documentary requirements.
Which industries are good to invest in?
Some of the main industries in Bulgaria include:
Manufacturing
Bulgaria has a well-developed manufacturing sector, with a particular focus on the production of machinery, equipment and electronics.
Energy
Bulgaria has a diversified energy mix and is working to increase the use of renewable energy sources.
Tourism
Bulgaria has a growing tourism industry with a focus on its historical and cultural attractions as well as its natural beauty.
Bulgaria is also known for its cheap and skilled labour, making it an attractive location for companies looking to outsource certain functions. In addition, Bulgaria has free trade agreements with several countries, providing business opportunities for exports and imports.
However, it is worth noting that Bulgaria still faces some challenges, such as a limited domestic market, lack of skilled labour, legal and bureaucratic challenges, and corruption remains a problem in some sectors. Furthermore, it is always best to conduct thorough research and consult experts before making any investment decision.
If you decide to do business in Bulgaria, you can contact TPA Bulgaria for advice on everything you need to know about doing business.