The latest official statistics announced by the Bulgarian Trade Register claims that Romanian investors are increasingly deciding to register firms in Bulgaria. In 2011 the number of Romanian companies registered in Bulgaria increased by 50% year-on-year. The report adds that the same goes for Greek investors, with the number of Greek companies in Bulgaria increasing by 72% in 2011 year-on-year reaching a total of 3 781.
The main reasons for Romanian investors to choose to start business in Bulgaria are the flat corporate tax of 10% which is the lowest within the whole EU, the VAT levels, and the cap of the social security payments, according to Gabriel Biris, a Romanian tax lawyer.
“From a fiscal point of view Bulgaria are in a much better situation than us with respect to both the flat tax which is 10% in Bulgaria, and the VAT, which is 20%; and even more so with respect to the social security payments which are 29%, and are capped at BGN 2 000,” he explains. Regardless of a Bulgarian’s salary, one never pays more than EUR 290 for social security payments – which is the total for the employee and the employer, the lawyer says.
