Bulgaria is quickly becoming a destination for startup founders and entrepreneurs looking for alternative business destinations in Europe. Sofia, the capital of the country, is now being referred to as the Silicon Valley of Europe since many startups are developing software products and software development as a service. If you are considering Europe as a destination for your startup expansion or launching, here are 5 reasons why you should start your business in Bulgaria.
Low taxes
Bulgaria is considered as one of the countries with the lowest tax rates. Corporate income tax is pegged at a fixed rate of 10%/year, which is one of the lowest in Europe. Capital gains tax is 5%. What this translates to is that you pay less than 15% tax on your company income yearly.
VAT is set at 20% for purchase of goods and services, while tourism only attracts a rate of 8%. It is believed that Bulgaria has a tax regime that is the most favourable for businesses in the entire European Union.
Access to the European market
Bulgaria joined the EU in 2007, and has enjoyed the benefits of being a member for more than 10 years, including free European markets. This is a big deal for businesses looking to start their operations in Bulgaria, as they will also benefit from free markets like any other company registered in Bulgaria. There are zero taxes on exports and imports within the EU, which is an advantage for startups.
The labour market
If you are operating an IT business, then you will have access to a pool of young and talented employees with relatively low wages when compared to other countries in the EU. The EU free market allows you to transfer skilled employees from other EU member countries as well.
It is easy
Registering your business is quite easy, especially if you seek the help of a lawyer or a law firm with experience in settling new businesses. Getting your business registered in Bulgaria takes only about a week, and you can get it done while in another country. This is why you need the expertise of law firms like Oikonomakislaw.com to help you get your business registered with ease.
It is affordable
The entire process of registering your company in Bulgaria is extremely affordable. It will cost you less than 150 euros to complete the entire process. The minimum capital required for the founding of a limited liability business is only 1 euro. You will also get access to affordable accounting services and you can employ an accountant for less than 40 euros per month.
