Welcome to ASB Accounting Services Bulgaria – your trusted partner for accounting, tax, and business services in Bulgaria!
Make sure to like subscribe and hit the bell button. For more tips on doing business in Bulgaria.
Taxes in Bulgaria
If you’re looking for low taxes and a business friendly environment in Europe, Bulgaria is an excellent choice. In this video, I’ll give you a simple overview of the key taxes for companies in Bulgaria.
The corporate tax
In Bulgaria, all companies pay a flat corporate tax of 10%, one of the lowest in the European Union. Whether you are a small business or a large corporation, this rate remains the same. Simple, straightforward and predictable. That’s why many foreign entrepreneurs choose Bulgaria. Next we have the dividend tax. After paying corporate tax, if you distribute your profits as dividends, there’s an additional just 5% dividend tax. Next we have the VAT value added tax.
The standard rate in Bulgaria is 20%. If your annual turnover exceeds 166,000 Leva, which is around €85,000, VAT registration is mandatory. Once registered, you charge VAT on sales and submit monthly VAT returns. While there are exemptions and reduced tax rates for certain goods and services, the standard rate is 20%. Social Security contributions are another key aspect. If you are an owner and want to carry a company, you need to cover Social Security contributions for yourself.
There is one big advantage. Bulgaria has no local business taxes on profits. This makes tax planning simpler and more efficient. To sum up, Bulgaria offers a low tax environment with 10% corporate tax, 5% dividend tax, 20% with VAT if registered, and Social Security contributions for employers and employees.
It’s a straightforward and cost effective place to do business. If you’re thinking of starting business in Bulgaria or need help with accounting and tax consulting, contact ASB Accounting Services Bulgaria.