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Republic of Bulgaria – is a country in southeastern Europe, in the eastern part of the Balkan Peninsula. The country has an outlet to the Black Sea and thanks to the favorable climatic conditions is a popular resort center. The official language is Bulgarian, the national currency – is lev. Like most former communist block, Bulgaria at the end of the 90s was in extremely difficult position. Production decline, rising unemployment level and deteriorating of living standards have put the country`s government to choose the way of further development. Market system course and successful reforms have yielded favorable results in 2002, which was confirmed by the European Commission.

Bulgaria is a member of many international organizations - UN, OSCE, Council of Europe, BSEC, NATO and the EU. The most developed economy sectors are tourism, financial services, industry, agriculture, coal and copper production. The country`s budget mostly depends from tourism business revenues and import-export operations.

The country isn’t classic offshore zone, because in Bulgaria there are:

- profit taxation;

- financial statements requirements;

- data about directors and shareholders are in public access.

EU membership, signed treaty on Avoiding Dual Taxation with many countries, Free Economic Zones (FEZ) make this jurisdiction rather attractive for foreign investment.

Offshore Bulgaria is popular for several reasons:

- The country has advantageous geographical location;

- Availability of transportation routes, that are necessary for European communications;

- EU membership provides the appliance of the European tax directives to the Bulgarian companies;

- Bulgaria is a low-tax jurisdiction (corporate tax rate – is 10%, withholding tax on dividends – is 5%);

- Democratic legislative framework that provides equal rights to foreign and local businesses.

The company in Bulgaria may be registered in the following forms:

- Limited Liability Company.

- Joint adventure.

You must have at least one director and one shareholder – private or legal persons without residence requirements for opening the company in Bulgaria. The minimum capital for LLC is 5000 leva, for JA – about 50 000 leva, 70% of which must be paid before the company registration. Financial statements, audit, the presence of the registered office are necessary. It should be an annual meeting of shareholders, which can occur anywhere in the world. One can use nominee directors and shareholders, as the information about these individuals is in open access. Nominee service includes registration of general authorization and trust deed.

In Bulgaria, the company registered in the FEZ have additional opportunities for business. There are six such zones in the country`s territory: Burgas, Plovdiv, Svilengrad, Vidin, Dragoman, which mainly operated from the late 80`s, early 90`s. FEZ is mostly created in major transportation hubs: sea and river ports, international airports, the most important transport routes, as well as in industrialized areas. FEZ can be also created in major tourist centers.

The properties of foreign companies, which are in the territory of FEZ, are not subject to exemption or confiscation by administrative order. Any type of activity that is carried out by foreign companies or joint adventures, accompanied by the registration of contracts concluded with the FEZ administration.

One can exempt from VAT, customs duties and excise taxes that are imported and exported from the zone of goods, as well as services related with trading, production and other economic activities. This rule applies to the goods exchange and services of the FEZ company both with foreign partners and local companies located in the country. The list of such goods does not include alcohol and tobacco.

The main activities carried out in the territory of FEZ are:

- Production of commodities and services for export;

- Unloading, transportation and warehousing (storage) of goods for further export;

- Preparation (packaging, labeling) products for export;

- Representative and intermediary services;

- Banking, insurance and other financial transactions.

In addition to tax advantages there are also the possibility of the income withdrawal to abroad without any restrictions, as well as negotiations between investors without intermediary of the local authorities.

Карта Bulgaria STANDARD


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