Our website uses  cookies for statistical purposes.

  • 66 Vitosha Blvd., zip code 1463, Sofia, Bulgaria
  • clients(at)lawyers-bulgaria.com
  • +359 888 350 643
Our Articles

Tax Minimization in Bulgaria

Tax Minimization in Bulgaria

Tax minimization or fiscal optimization is the proper instrument used by many companies in Bulgaria who want to reduce the contribution to the taxes that need to be paid. This is how the profits will be maximized in a legal manner. Our company formation specialists in Bulgaria can offer you essential information and guidelines if you are interested in tax minimization in Bulgaria and can provide you with suitable options for your company.

Tax minimization key facts in Bulgaria

First of all, it is good to know that every company in Bulgaria needs a proper tax plan in order to avoid the overpaying of the fees. The tax minimization in Bulgaria can be made if the main taxes are analyzed, such as the corporate and income tax, the social contributions, the withholding tax, and the VAT. Deductions can be used as a tax minimization method when applied to gifts acquired for business associates or employees, office supplies, and subscriptions for different establishments in the country or abroad.

A businessman who has a registered company in Bulgaria and makes proper activities in the chosen domain can also consider making important investments, as a suitable method for tax minimization in the country. Besides that, setting up a charity in Bulgaria might be a good idea to profit from the available tax deductions.

Our company formation representatives in Bulgaria are ready to offer detailed information about the tax minimization methods available in the country. Besides that, any entrepreneur who wants to establish his presence in the Bulgarian market can receive details about the company formation in Bulgaria.

Our accountants in Bulgaria can offer you optimal solutions and complete services if you open a company in this country. Among the necessary procedures in a company, we mention payroll, bookkeeping, preparation, and submission of annual financial statements. Also, our specialists can provide you with complete financial reports, either periodically or on request, depending on what the managers and company owners want.

Why is tax optimization needed and how is it done in Bulgaria?

Regardless of the activity sector, companies want to reduce their expenses with taxes imposed in Bulgaria. In this sense, there is a need for investments in research for proper tax optimization methods and the implementation of the most effective solutions. Tax planning and optimization come to the attention of our specialists with experience in the field, and in order to be able to understand what the steps in this regard are, the following explanations may clarify:

  • Tax strategy development is needed – Businesses are different, and so are the needs of entrepreneurs. Depending on the objectives and business plans of each investor, specific tax strategies can be proposed in order to minimize the taxes that must be paid to the Bulgarian state. Some retirement plans can be proposed in this direction.
  • Suitable management is recommended – The tax optimization process can start with the development of a calculated plan. With the help of our tax specialists, proper administration implicating varied financial operations, support, documentation, and process monitoring can be implemented.
  • Monitoring and adjusting are necessary – Tax optimization methods can help local and foreign entrepreneurs achieve their financial goals and develop their businesses as they wish. A detailed monitoring and adjusting process is essential to regulate internal and external modifications in terms of taxes and minimization.

In Bulgaria, legally optimizing the tax amount is possible and quite recommended for companies activating in this country. Our tax advisors in Bulgaria can propose a good approach to developing tax optimization methods in compliance with local laws, with an emphasis on the direction of business and its development. More about taxation and the ways in which you can open a company in Bulgaria can be discussed with us.

Why is the tax regime in Bulgaria appealing to foreign entrepreneurs?

Bulgaria is one of the countries with the best and most advantageous tax system in Europe. Starting from this aspect, many foreign entrepreneurs find this business destination favorable. To give you an idea of what this tax system entails, the following lines might clarify for you:

  • Corporate Income Tax or CIT in Bulgaria is one of the lowest corporate income tax rates in the European Union. This is a flat rate of 10%. This kind of tax makes Bulgaria an attractive opportunity for entrepreneurs seeking to collect more of their profits.
  • Great VAT regime – The VAT rate in Bulgaria is set at 20%, one of the lowest taxes within the EU countries. This is another tax benefit for company owners operating in the import and export sector, manufacturing, and more.
  • Dividend taxation in Bulgaria – It is good to know that dividends accepted from EU subsidiaries are generally exempt from taxation if particular conditions are met. This exemption boosts the attractiveness of Bulgaria as a great business destination for those who want to open holding companies in this country.
  • Double Taxation Treaties – Bulgaria has signed a wide range of double taxation treaties with various countries worldwide through which protection against double taxation is offered.

Please feel free to contact our company formation consultants in Bulgaria if you want more details or guidelines about the tax minimization methods available in the country. You can also receive guidance for company registration in Bulgaria.