Bulgaria’s corporate tax rate is the lowest in the European Union, fixed at a flat rate of 10%. This is very attractive for maximizing profit while minimizing tax liabilities, regardless of where the company owner is based.
The complete tax structure includes:
In Bulgaria, while social security contributions are based on an individual’s salary, they are subject to a maximum cap.
Minimum and Maximum Contributions: The minimum monthly contribution is based on the minimum wage, currently 292.03 lv (about 149 €). The maximum contribution is capped at 1173.75 lv (about 600 €).
Salary Cap Explained: No matter how much an individual earns above this threshold, their social security contributions are only calculated up to the maximum cap of 1173.75 lv. For example, if you define for yourself a monthly salary of 5000 lv, your social contributions are still computed as if you are earning 1173.75 lv. This cap reduces the social security burden for those with higher incomes, making it financially advantageous for high earners.
Bulgaria offers a relatively straightforward and quick process for company registration.
Furthermore, the administrative maintenance regulation is simple, without unnecessary bureaucratic complications.
This ease of setting up a company is beneficial for foreigners who may not be familiar with or wish to deal with complex regulatory environments.
Compared to other EU countries, Bulgaria offers lower business operational costs, including lower costs for services like accounting, legal, and virtual office facilities, which are essential for managing a business remotely.
By registering a company in Bulgaria, which is a member state of the EU, businesses can operate across all other EU countries under the same business regulations and standards. This facilitates easier access to the European market without needing a physical presence.
Additionally, services provided within the EU are subject to a 0% VAT rate, offering significant cost savings on cross-border transactions.
Even for remote management, access to a skilled workforce, particularly in IT and engineering sectors, is beneficial. Companies might find it advantageous to outsource or hire remote workers from Bulgaria due to the high level of education and lower wage expectations.
Having a registered business in Bulgaria allows for access to various European funds and development programs, which can support growth and expansion, beneficial even if the business operations are managed from abroad.
Country | Profit Tax Rate | Social Security Contribution | Other Taxes to Consider (Excl. VAT) |
---|---|---|---|
🇲🇹 Malta | 35% | 10% | Excise duties, customs duties, property transfer taxes, stamp duty on property and securities |
🇦🇺 Australia | 30% (or 25% for small businesses) | 9.5% (Superannuation) | Payroll taxes, land taxes, fringe benefits tax |
🇫🇷 France | 25% | Approx. 45% | Social levies, professional training tax, apprenticeship tax, transportation tax |
🇧🇪 Belgium | 25% | Approx. 25% | Regional taxes, environmental taxes, payroll tax |
🇪🇸 Spain | 25% | Approx. 30% | Local taxes, environmental taxes, economic activities tax |
🇳🇱 Netherlands | 25% (over €395,000); 15% (up to €395,000) | Approx. 23% | Environmental taxes, heavy motor vehicle tax |
🇳🇴 Norway | 22% | Approx. 14.1% | Employer's contribution to the National Insurance Scheme, property tax |
🇩🇰 Denmark | 22% | Less than 2,000 DKK annually | Environmental taxes, energy taxes, vehicle registration tax |
🇺🇸 USA | 21% Federal + state varies | Varies by state, typically about 7.65% federal + state | State and local taxes, franchise taxes, property taxes |
🇵🇹 Portugal | 21% | Approx. 23.75% | Stamp duty, municipal property tax, vehicle tax |
🇮🇸 Iceland | 20% | Approx. 11.5% | Municipal taxes, financial activities tax, stamp duties |
🇫🇮 Finland | 20% | Approx. 25% | Real estate tax, car tax, excise duties on alcohol, tobacco, and energy |
🇬🇧 UK | 19% | 15.05% | Business rates, stamp duty land tax, apprenticeship levy |
🇨🇭 Switzerland | 15% - 21.1% | Varies by canton, typically about 12% total | Cantonal taxes, stamp duties, securities transfer tax |
🇨🇦 Canada | 15% Federal + provincial varies | Approx. 12% federal + provincial | Provincial taxes, payroll taxes, property taxes |
🇧🇬 Bulgaria | 10% | 150 € to 600 € MAX Calculation capped on a salary of 1917 €, even if you make more! | None! |
Yes, you can…
…but you want to do so:
That's why you need expert assistance!
I’m Ivailo Petrov, born into a family of accountants—navigating fiscal regulations is in our blood!
My team and I have been helping hundreds of honest entrepreneurs just like you safely optimize their tax situations since 2014.
Contact us now for a free consultation and we’ll advise you on how to efficiently reduce your unecessary expenses, legally.
Keep more of what you earn!
Benefit from Bulgaria’s lowest corporate tax rate in Europe—only 10%, coupled with highly advantageous social security contributions capped to maximize your savings.
Save time, focus on growth
Bulgaria’s business administration is straightforward, with no hidden taxes or complex regulations, making it one of the simplest systems in Europe.
Enjoy the peace of mind of a fully legal setup
We ensure your business operates within the law, providing you peace of mind and protecting you from potential legal headaches.
Manage your business from anywhere
Whether you’re at home or on the move as a digital nomad, our complete remote service setup means you don’t have to set foot in Bulgaria unless you choose to.
We take care of everything…
For just a 300 € one-time registration fee and 250 € monthly accounting fee, our complete accounting package manages your VAT, social security, salary declarations, accounting invoices and quarterly dividend declarations.
…and even more!
Benefit from our proactive support, custom-tailored to your evolving business needs. Our experts not only respond to challenges but also anticipate them, ensuring your operations comply with the latest Bulgarian laws and regulations.
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So what's next now?
Let’s get to know each other. It’s important for both of us to make sure we collaborate with trustworthy people to ensure a successful future.
To ensure your safety and our integrity, we deliberately avoid working with companies engaged in non-transparent activities.
If you are in Bulgaria, we will guide you in person along each step of the setup of your company.
If you stay abroad, we’ll handle everything for you remotely, making sure everything goes smoothly no matter where you are.
We will use the online tools and systems that you prefer. This helps us work together effectively, fitting into your usual way of doing things…
…and you’re good to go, your situation is now legally optimized, you can focus on growing your business!
Registering a company in Bulgaria provides significant advantages, such as a low corporate tax rate of only 10% and advantageously capped social security contributions. These factors make Bulgaria an attractive choice for digital nomads and business owners in the service-related industries.
An OOD (Дружество с ограничена отговорност) or LTD (Limited Liability Company) is a legal entity in Bulgaria where the liability of the shareholders is limited to their capital contributions, offering protection for personal assets.
The taxes for companies in Bulgaria include a flat corporate tax rate of 10%, which is the lowest in the European Union, and a dividend tax of 5%. Additionally, social security contributions are capped at a maximum of 600 € regardless of the salary chosen. Those elements combined with the absence of extra taxes or complex regulations, makes running a business in Bulgaria straightforward and financially beneficial for foreigner owners.
The corporate profit tax in Bulgaria is 10% on the taxable income of the company.
For your Bulgarian company, social security contributions typically range from 30% to 32% of the employee’s gross salary, shared between the employer and the employee.
Social security contributions are capped at a salary 3750 BGN (1917 EUR), so if you pay yourself 10,000 BGN, contributions are still based on 3750 BGN. The minimum contribution is 149 EUR, and the maximum (capped) is 600 EUR.
Make the smart move!
Take the first step to reduce your tax burden and streamline your business setup.
Contact us now for a free consultation and learn how we can help maximize your earnings with legal tax optimization.
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