Main Characteristics of a Company in Bulgaria:
General Background – Incorporating a company in Bulgaria is an attractive option for Israelis as it is close by, has a strong economy and tourism is flourishing. The country is an attractive investment destination for Israelis. Bulgaria is situated in Eastern Europe and borders Romania, Greece, Turkey, Macedonia and Serbia. Bulgaria is divided into 28 provinces and there are over a million residents living in its capital Sofia. Bulgaria expanses about 110,000 kilometers and is rated at 101 in most populated countries with a GDP of $103,700 as of 2012.
Tax – Bulgaria’s attractive tax legislation of 10% is a huge advantage for foreign investors. According to the law in Bulgaria, a Bulgarian resident company must be amalgamated in the country. All companies are required to pay tax on every source of income. However, a foreign company that is not amalgamated in Bulgaria must pay tax only for income that stems from the country. The tax rate in Bulgaria is only 10% as to encourage investors and foreign companies to boost their growth which in turn creates more jobs for the local residents. Like other countries in Eastern Europe, Bulgaria is also in a state of recovery. Everything connected to capital gains, Bulgarian companies need to add to the income of the company and pay 10% tax.
Confidentiality – Names of the company’s owners and directors is publicly listed. There is the option of using our nominee director and nominee shareholder services to maintain confidentiality.
Name of the Company – There are no limitations on choosing a name for the company.
Shareholders – A minimum of one shareholder is required, can be private or a corporation.
Directors – A minimum of one director is required, can be private or a corporation.
Conditions for Incorporating a Company in Bulgaria:
Tax law in Bulgaria becomes even more important for companies that operate in certain areas where there is a high unemployment rate. Various tax reductions encourage companies to invest in the country as it offers a convenient infrastructure for long-term investment. Bulgaria is considered to be politically stable and has a sophisticated trade policy. In addition, accessibility to Bulgaria is easy. In recent years there have been many professionals who have come from various countries in Eastern Europe and the USA that take part in the rebuilding of the capital market.
Bulgaria’s Tax Breaks:
As above mentioned, company tax and capital gains are low but it is important to note that Bulgaria’s attractive tax system is characterized by a uniform tax rate and other various contributions in order to avoid double tax. Therefore, Bulgaria offers a lenient tax policy in which the rate of tax imposed is 20%. By registering a company in Bulgaria and obtaining residency, one can bypass the customary personnel tax method in Israel that began in 2003 but there are certain conditions.