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Transfer money from your Bulgarian business to your account is a common need for business owners. However, it’s essential to do it legally to avoid penalties and ensure compliance with Bulgarian tax laws. Here’s a guide to help you navigate the process:
1. Salary Payments
Paying yourself a salary is the most straightforward method. Your company must:
- Register yourself as an employee or manager.
- Withhold income tax (10%) and social security contributions.
- Pay the net amount to your account.
This method ensures you receive a steady income while complying with tax obligations.
2. Dividends Distribution
After the company has paid corporate tax (10%), it can distribute profits as dividends:
- Dividends are subject to a 5% withholding tax.
- Once the tax is paid, dividends can be transferred to your account.
Dividends are often a tax-efficient way to transfer profits.
3. Director’s Loan
You can temporarily borrow money from your company:
- Ensure proper documentation of the loan.
- Repay the loan within the agreed time to avoid tax implications.
This is a short-term solution and not a long-term strategy.
4. Expense Reimbursements
Reimburse yourself for business-related expenses paid from personal funds:
- Keep all receipts and proper documentation.
- Transfer the exact amount to your account.
This method is suitable for recovering business expenses
Need help managing your business finances in Bulgaria? Contact us for expert accounting and tax consulting services tailored for foreign business owners.