The foreign businessmen
can choose to invest in Bulgaria
because of the many benefits this country has to offer. There are numerous developed domains and here we mention the agriculture and the tourism sectors, the last one being well seen in the past decade due to its major changes. If you wish to invest in Bulgaria
you can solicit help and guidance from our company formation agents in Bulgaria
Reasons to invest in Bulgaria
The geographic location of Bulgaria
makes it an attractive country for all types of businesses
. Being strategically located and having important exits at the Black Sea, Bulgaria
also offers financial and macroeconomic stability. The taxation system
is also an important aspect that you should take into consideration when deciding to invest in Bulgaria
. For instance, the profit tax is only 10% and the tax on dividends paid to non-residents is 5%.
Bulgaria has the lowest taxation system in the European Union (EU), a strong reason why foreign investors choose to develop businesses here. As a reminder, you can set up a company in Bulgaria in 14 working days after you have prepared the necessary documents. The registration process of a company in Bulgaria is quite easy and our company incorporation representatives will guide you the entire course. Here is an infographic explaining the main reasons to invest in Bulgaria:
Investing in real estate in Bulgaria
The real estate investments in Bulgaria
increased visibly in 2016, due to all the benefits that the country offers and especially in the fiscal sector. In recent years, Bulgaria
has become a popular destination, and businessmen
from Russia, Hungary or Ukraine have chosen to invest in Bulgaria in the real estate sector
. The low prices for properties and resorts at the Black Sea have become an attraction for many foreign investors
, and here we mention an average price of EUR 500 per square meter. Regarding Sofia, the capital of Bulgaria
, the values do differ a little bit, and the average price goes around EUR 800 per square meter for a residence in the city. The real estate in Bulgaria
has a low level of taxation
and property request is growing daily. Take into consideration that all foreign investors
who wish to register a company
in the country and invest in Bulgaria
can obtain guidance and legal assistance from our company formation agents in Bulgaria.
You can also receive guidance on the registration process of a business in Bulgaria
The Foreign Investments Agency in Bulgaria
controls the main funds made by overseas businessmen
, and here we mention the real estate investments, the intellectual property, securities and also equity investments. Due to a proper climate and suitable reforms, Bulgaria
offers many opportunities for people who choose to have a business
here, all of them being guaranteed by the Bulgarian legislation
related to the foreign investments
that stipulate fairness and objectivity. Our company formation agents in Bulgaria
are able to offer important information and guidelines if you want to make investments
in the country. You may also receive details about the company registration procedure in Bulgaria
and legislation related to investing in Bulgaria
Details about the Investment Law in Bulgaria
People interested in investing in Bulgaria
are attracted to the financial and macroeconomic stability in the country and to the liberal investment management. According to the Investment Law in Bulgaria
, an overseas investor
may be an individual with a foreign permanent residence, a legal person without any registration in Bulgaria
, or an enterprise without being a legal person. It is good to know that the foreign individuals have the right to start doing business in Bulgaria
and to register the companies
with the Bulgarian Chamber of Commerce
and the Trade Register
An investor may have the ownership title for certain assets and also limited proprietorship over a property in Bulgaria. The individual has also access to loans, securities, can obtain the intellectual property title and can be the sole owner of a company in the country. The Council of Ministers in Bulgaria is in charge of issuing the permits for individuals with ownership titles over certain properties or assets. You should know that you may not obtain a land proprietorship title.
Other important provisions
- • he/she generates incomes due to specific investments;
- • obtains earnings from the sale of the investment good;
- • has generated incomes through the made investments.
Every foreign investor
has the possibility to make deposits in foreign currencies with the banks in Bulgaria and can purchase properties. Our experts in company formation in Bulgaria
can provide you information in this matter and can also offer assistance if you want to register a company
and invest in Bulgaria
. It is good to know that the foreign investors
have the same rules and regulations related to the registration procedure of an enterprise
as the citizens in Bulgaria
, without any specific requirements.
Is it hard to open a company in Bulgaria?
No, it is not complicated to open a company in Bulgaria
, and that because the formalities have been simplified. This is a great advantage for foreigners interested in opening a business in Bulgaria, allowing investors to easily set up their activities. The limited liability company or the OOD in Bulgaria
is the most popular business structure that can be set up with 1 Euro or 1 BGN. Here are a few aspects to know about how you can open an LLC as a foreign investor in Bulgaria:
- A local representative is needed for opening an LLC in Bulgaria, and one of our consultants can help.
- In terms of documents, the Articles of Association are the most important and comprise information about the owners, their nationality, the activities of the firm, and many more.
- Obtaining the licenses and permits is required for certain activities in Bulgaria.
- The registration for tax purposes and social contributions is required.
The Bulgarian Trade Register accepts the documents of the company, but before that, foreign investors need to make a name verification and reservation. The entire company registration process can be handled by one of our company formation agents in Bulgaria, so entrepreneurs can concentrate more on future investments and operations.
Opening branches and subsidiaries in Bulgaria
International entrepreneurs have many business opportunities in Bulgaria
. Large companies can have branches and subsidiaries in Bulgaria
, respecting the provisions of the Company Law. While the subsidiary enjoys complete independence and can develop other activities too, a branch is entirely connected with the parent company. The registration of both entities is done with the Bulgarian Trade Register, following the rules referring to documents. Just like in the case of any other business structure, the Articles of Association stand at the base of branches and subsidiaries in Bulgaria
, alongside a declaration stating the intention of opening such entity. A representative agent with residency in Bulgaria, a bank account in Bulgaria plus the tax registration are formalities required for branches and subsidiaries in Bulgaria. More details on this topic can be discussed with one of our company formation agents in Bulgaria
. Our team has experience in company formation in Bulgaria
and can guide foreign entrepreneurs throughout all the formalities.
Foreigners can purchase shelf companies in Bulgaria
Entrepreneurs who want to invest in Bulgaria
in a fast manner have the opportunity of buying ready-made companies and start the activities right away. This kind of business is already incorporated in Bulgaria, meaning that future owners of a shelf company will have to register it for tax purposes. Being a ready-made company, there are no financial activities, and therefore no debts or liabilities. However, entrepreneurs might be interested in a company due diligence for more details in this matter. Regardless, we invite you to talk to our company formation agents in Bulgaria
if you want to buy a shelf company
The tax regime in Bulgaria
Making an investment in a particular country starts with a solid plan and a verification of the business environment. The tax regime
is important for all business decisions, and Bulgaria presents one of the most appealing tax systems in Europe. For instance, the 20% VAT rate is imposed only on companies with incomes of more than BGN 50,000 or around EUR 25,500. The corporate income tax is set at a 10% rate, another important advantage when it comes to making investments in Bulgaria
. If you would like to know more about the taxes you need to pay for a company in Bulgaria
, do not hesitate to give us a call or an email.
Startups in Bulgaria
Bulgaria presents a high potential for startups, considering the great business environment that attracts a large number of foreign investors on a yearly basis. The tech sector, for example, continues to prosper, already hosting numerous creative and smart startups that enjoy the support of foreign investors. Apps for statistical systems, or for specialized financial services, crowdfunding platforms, applications offering the possibility of exploring lots of digital content, or the ones that help farmers improve the irrigation process, here are a few of the startups opened in Bulgaria
that enjoy quite a success on the market. The startup ecosystem is sustained by the Bulgarian government with different programs and encouragements meant to help young entrepreneurs enter the market. If you would like to know more about startups in Bulgaria
, feel free to send us your inquiries.
The ultimate report about foreign direct investments in Bulgaria
If we talk about numbers, it is good to know that the total FDI (foreign direct investments) stock in 2019 stood around USD 51.8 billion. The significant domains for FDI in Bulgaria are real estate, energy and tourism. The financial services sector also developed in the last years, and has been a major magnet to many overseas investors (around 16.7% rate of the total FDI was directed to this sector in 2018).
Bulgaria provides a great business climate for both local and foreign entrepreneurs interested in making investments in stable sectors like tourism, IT and communication, manufacturing, FMCG, and many more. There are many advantages provided by Bulgaria’s investment sector, and among these, the encouragements and incentives offered by the government. Foreigners can benefit from zero taxation for companies established in the free trade zones or can enjoy low taxes if they hire a number of local employees or invest in company equipment, just to name a few. More than that, providing simple registration formalities to foreign investors is definitely a plus and a great business advantage. The following facts and figures highlight the economy and the business direction of Bulgaria, and can help foreign investors make a decision in this sense:
- • around USD 51.8 billion was the total FDI stock registered in Bulgaria in 2019;
- • entrepreneurs also became interested in greenfield investments, around USD 2.2 billion being the total value in 2019;
- • the 2020 Doing Business report issued by the World Bank ranked Bulgaria 61st out of 190 economies in the world;
- • Bulgaria has one of the lowest corporate income taxes in Europe, set at a 10% rate;
- • foreign investors enjoy the same business rights just like the local entrepreneurs;
- • around 17% of the FDI in Bulgaria come from the Netherlands, a major business partner;
- • about 24% of the foreign direct investments in Bulgaria are absorbed by the real estate sector.
Company relocation in Bulgaria
Investing in a foreign country can also mean moving companies to Bulgaria
and starting activities in a new market. Relocating a company in Bulgaria
is a fairly simple process, if you consider the rules imposed by the authorities. It all starts with a relocation declaration of the company, signed by the company's managers, but also by the administrators and directors. Closing the contracts with the local suppliers is another important step in relocating a company to a foreign country, as well as paying them and closing the loans where appropriate.
As soon as the first steps are taken, the registration of the foreign company in Bulgaria is next, with the revealing authorities, assisted by one of the company formation specialists. Our team of agents can help you with the documents required to register your new company in Bulgaria in a relatively short time. The registration for the tax and social contributions payment is the next thing to consider.
Business ideas for Bulgaria
Bulgaria is a country with a lot of potential offered to foreign businessmen, regardless of the sectors of interest. In addition to this aspect, the advantageous labor force and the taxation system are other matters that foreign investors have in mind. Here are some business ideas you can put on the list and analyze them when deciding on investments in Bulgaria:
- An agriculture business - Bulgaria has generous lands, and an agricultural business can be a success from the very beginning. Whether we are talking about fruit and vegetable production or an animal farm, a business in this field is a good investment. In addition, the Bulgarian government provides substantial incentives to those who invest in agriculture.
- An insurance company - An insurance business can be an excellent idea, both for local entrepreneurs and for those abroad. The insurance market in Bulgaria covers a wide range of sectors of interest, especially life insurance, home and health insurance, but also car insurance. Registering a company in the insurance field in Bulgaria is easy, and the whole process can be supervised by our team of specialists.
- A publishing company - The media sector is quite generous in Bulgaria and offers a lot of possibilities, including to foreign investors. A media company can implement various publications such as magazines, newspapers and books that can be distributed in the country, but also abroad. We remind you that an LLC is the most suitable structure through which you can register a company in Bulgaria, due to the simplified formalities and the benefits offered. If you want to invest in Bulgaria and find out the details related to setting up a company in this country, do not hesitate to talk to our team.
- A pharmaceutical company - The pharmaceutical field has taken shape in recent years in Bulgaria, reaching profits of over EUR 2 billion annually, compared to other European countries. Although there are several large pharmaceutical companies with big local and international distribution, there is also room for other companies too that want to operate in this sector.
- A restaurant in Bulgaria - A good business idea is to open a restaurant in Bulgaria, especially in tourist areas of interest. Besides the fact that a restaurant can be an excellent source of profit, this type of business can expand quite quickly, especially if it adopts an innovative concept from the beginning. So, if you want to open a restaurant in Bulgaria, take into account the location, budget and project.
- An online shop - Another business idea that can generate profits in a relatively short time can be developed online. An online shop that offers different products and services can be opened without too much effort, on the internet. Growing an online shop depends largely on the marketing strategies adopted, but also on a good promotion on all possible media channels.
- An IT business - The IT field is constantly developing in Bulgaria, and local and foreign companies registered in this field enjoy an optimal business climate, supported by a series of incentives and more. A company that provides technical support to other firms can be a business idea that can take shape from the beginning.
So, if you want to invest in Bulgaria and discover the sectors that suit you best for the business ideas you have, do not hesitate to talk to our team of company formation specialists. We are here to provide the necessary support in terms of documents and their registration with the relevant authorities.
FAQ about business in Bulgaria
1. Is it hard to start a business in Bulgaria as a foreigner?
No, there is no need to worry about the formalities for opening a company in Bulgaria because there are no complexities involved. The business rules have been simplified in the past years, to attract foreign entrepreneurs to enjoy the climate and develop their activities.
2. How do I start a business in Bulgaria?
First, you need to choose the business structure that suits you best for your future activities. The limited liability company or the OOD
is the most popular business entity available and the choice of many entrepreneurs. The registration of the company
can be managed by our specialists in company incorporation in Bulgaria
3. What are the major industries in Bulgaria?
Energy, metallurgy, mining, manufacturing, tourism, textile, and agriculture represent powerful industries in Bulgaria and on the list of overseas businessmen who want to generate profits in this country. IT & communication is another generous industry that absorbs foreign investments.
4. How is the tax regime in Bulgaria?
Bulgaria has one of the lowest tax structures in Europe, with a corporate income tax of 10%. A good and appealing taxation structure is always on the list of domestic and foreign investors.
5. Does the legislation related to foreign investments in Bulgaria provide equal business rights?
Yes, both domestic and foreign entrepreneurs are treated equally from an investment point of view. The legislation addresses both categories of investors without discrimination. If you would like to invest in Bulgaria, don’t hesitate to get in touch with our specialists in the field.
Choosing our specialists in Bulgaria
When thinking of investing in Bulgaria
, it is recommended to pay attention to the regulations of business in this country. A foreign investor needs the support of a dedicated team of company formation agents in Bulgaria
because this way, the business can start fast, without problems in matters of bureaucracies. This is a solid reason to choose our professional and dedicated specialists in company formation in Bulgaria
who can guide entrepreneurs from abroad towards the best possible solutions and results. Company formation, tax compliance, and registration, guidance for opening investment funds, support for licenses and permits, accounting services
, and a wide range of legal matters are at the disposal of clients from overseas who want to invest in Bulgaria
. A solid communication is provided right from the start because we pay attention to the needs of the clients who get in touch with us. It is quite simple to send us your inquiries and let our team of company formation representatives in Bulgaria
manage the incorporation process and related aspects.