Tax advantages of Bulgarian holding companies
Foreign entrepreneurs interested in holding companies in Bulgaria need to know the benefits of such a structure in terms of taxes. For example, for this structure, corporate income tax is set at a rate of 10%, applied to worldwide income. It is important to note that holding companies in Bulgaria are exempt from tax on dividends received. It is also valid for dividends paid by a holding company established in Bulgaria for a foreign company registered in this country. Here is other information and advantages about this structure:
- • Bulgaria has signed more than 60 double taxation treaties with countries around the world in order to protect against double taxation and prevent tax evasion.
- • Annual distributions are subject to a 5% withholding tax, which is a great advantage over foreign investors.
- • In addition, companies established in the cities with the highest unemployment rate can benefit from a total exemption from the corporate tax rate.
- • Financing is possible for holding companies managed in Bulgaria.
- • Bulgarian holding companies can set up and control shares in international companies.
- • EU funding is possible with a holding company in Bulgaria.
You can find out more about the charging system of the Bulgarian holding company
from our specialists. The registration of business in Bulgaria
can be done with the help of our local agents.
Frequently Asked Questions
Our specialists are at your disposal with information about Bulgarian holding companies, and the questions below can help you in the decision to open such a structure. Do not hesitate to talk to us and benefit from support if you are interested in setting up a holding company in Bulgaria.
1. What can a holding company in Bulgaria be used for?
Control in other existing companies can be done with the help of a holding company in Bulgaria. It can buy and sell bonds, securities, patents, copyrights, but it can also manage them.
2. What is the minimum share capital for holding companies in Bulgaria?
If the holding company in Bulgaria operates under the rules of the joint-stock company, the minimum share capital of EUR 25,000 is required. At least 25% of this amount must be paid upon establishment. In the case of LLC, the minimum share capital is EUR 2.
3. How many shareholders are needed to register a holding company in Bulgaria?
At least 1 investor or shareholder can set up a holding company in Bulgaria, and two are required if you are interested in the LLC structure.
4. What costs are required to set up a holding company in Bulgaria?
This structure is subject to low costs, including low rental costs. In addition, taxes are much more advantageous for the holding company in Bulgaria.
5. What is the corporate income tax imposed on holding companies in Bulgaria?
6. Can a holding company in Bulgaria control shares in a foreign company?
Of course, this is possible and represents another benefit offered to foreign investors in Bulgaria. For more details, you can contact our team of company formation agents in Bulgaria.
7. Can a Bulgarian holding company control shares in another foreign company?
Yes, according to Company Law in Bulgaria, holding companies established in this country can manage shares in other foreign companies.
8. What is the dividend tax system for holding companies in Bulgaria?
There are no dividend payments received by holding companies in Bulgaria. Also, the payment of dividends by a holding company in Bulgaria to a company in the EEA area is exempt from taxes.
9. Is the holding company in Bulgaria protected by double tax agreements signed by Bulgaria?
Yes, Bulgaria has signed a number of double taxation treaties
in order to prevent tax evasion and protect against double tax payments. These treaties are also valid for holding companies registered in Bulgaria
10. Can subsidiaries open financial deposits in a Bulgarian holding company?
Yes, this is possible if a deposit is not exceeded by up to three times the value of the stock capital, according to the same Company Law in Bulgaria.