Bulgaria

Company Formation

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• EOOD (single-member LLC) or OOD (multi-member LLC) minimum capital BGN 2 (~€1)
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• 10% flat corporate income tax (lowest in EU)
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• 10% personal income tax (also flat rate)
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• 5% dividend withholding tax (0% to EU parent companies under Parent-Subsidiary Directive)
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• Fast incorporation (7-14 days), low operating costs
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• Popular for software development, IT services, e-commerce, consulting and holding structures

Residency by Investment
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• Fast-track residency: €512,000 investment in government bonds (returned after 5 years) grants permanent residency immediately
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• Standard investor residency: €1,024,000 in government bonds grants citizenship eligibility after 5 years (fast-tracked to 1 year with doubled investment)
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• Real estate investment options available for temporary residency permits
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• Family inclusion: spouse and dependent children covered
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• EU residency with Schengen access (Bulgaria not yet in Schengen but residents can apply for long-stay Schengen visas easily)

Tax & Operating Benefits

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• 10% corporate tax on worldwide income for resident companies
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• 10% personal income tax (flat rate on employment and business income)
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• 0% withholding tax on dividends to EU parents
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• Low social security contributions compared to Western Europe
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• Participation exemption on qualifying dividends and capital gains from subsidiaries
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• No CFC rules, thin capitalization rules or exit taxes

Workforce & Infrastructure

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• Highly skilled IT and engineering workforce at competitive salaries
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• English proficiency strong among young professionals
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• EU labor mobility (hire talent from across Europe)
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• Improving infrastructure and connectivity to Western Europe
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• Sofia emerging as regional tech and outsourcing hub
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• Low cost of living and operating expenses