Bulgaria: Tax-Efficient Sectors
Tax-Efficient Business Forms
Corporate income tax in Bulgaria is already very low (10%), but in areas of high unemployment the government will reduce corporation tax to zero to encourage investment. This applies to manufacturing industries provided that the site and company’s assets are located in the “depressed region”. Corporate income tax relief is granted for up to five years. Businesses that establish a research and development facility can also receive attractive incentives.
There have been problems in the country with some companies entitled to reimbursement of VAT having to wait for many months before being refunded. The situation has now improved and as a further boost to business start-up, the amount of capital required to start a new venture has been dramatically decreased.