Paying Taxes in Bulgaria

 1. What is the corporate tax in Bulgaria?

The corporate tax  for a Bulgarian company is 10%, with the exception of companies who activate in shipping or gambling, which are submitted to different corporate taxes on income.

2. What is the VAT in Bulgaria?

The VAT in Bulgaria is calculated for 20%, but some sectors have a lower VAT rate. For instance, the VAT for companies in tourism is 9%, while in other fields, the Value Added Tax can be only 7%.

3. How can the VAT be refunded in Bulgaria?

Non-residents of Bulgaria can ask for VAT refund if the company is not registered for VAT purposes or if the company provides supplies that are subject of VAT exemption. On the other hand, you cannot ask for VAT refund if the business deals with goods and services that make the subject of tax exemption, are related to maintenance and repairing or have been confiscated by the state. Also, buying a motorcycle or a car or spending on entertainment cannot make use of VAT refund.

4. What is the dividend tax in Bulgaria?

In Bulgaria, there is a tax on dividends of 5% and no tax for dividends paid to European countries.

5. Are there any incentives for foreign investors in Bulgaria?

The law in Bulgaria offers several incentives when it comes to foreign investments. These come in the form of employment-based deductions and social security contributions.

6. Why do I need a local accountant for my business in Bulgaria?

For an efficient activity of the company in terms of accounting, a Bulgarian specialist might be able to deal with most of the tax rates and invoices that are usually required in the local language. Besides, a local accountant will find the best solutions to any financial problems that may arise from the calculation of taxes.

BridgeWest offers company registration in Bulgaria, including virtual office and other related services.