Complete Guide to Business Taxation in Bulgaria

Moving your company to a new country can be a smart strategic decision to optimize your tax situation and take advantages offered by other markets. In this sense, Bulgaria has become an attractive destination for Spanish companies seeking to improve their tax situation and expand their operations in Europe. 

In this complete guide to business taxation in Bulgaria, we will provide you with all the information you need to know to make an informed decision.

Taxation for companies in Bulgaria 

Bulgaria offers a favorable tax environment for companies, with a series of benefits and advantages that may be attractive to Spanish companies. One of the highlights is its competitive tax system, which is among the lowest in Europe.

Below we will explore the key taxes that affect businesses in Bulgaria.

Corporate income tax

Corporate income tax in Bulgaria is one of the lowest in the European Union, with a flat rate of 10%. This rate is applied to the company's taxable income, which is generally determined on the basis of net income less deductible expenses.

The low tax rate in Bulgaria is a significant advantage compared to the corporate tax rate in Spain, which can result in substantial savings for companies.

Personal income tax 

Personal income tax in Bulgaria also offers considerable advantages. The maximum tax rate for individual income is 10%, which is attractive to employees and company executives. This low tax burden can be an incentive to attract talent and keep labor costs competitive.

Value Added Tax (VAT)

VAT in Bulgaria has a standard rate of 20%, which is similar to the general rate in Spain. However, Bulgaria also offers a reduced rate of 9% for certain goods and services, which can be beneficial for companies operating in specific sectors, such as food, tourism or culture.

Double tax treaties

Bulgaria has a wide network of double taxation treaties with other countries, including Spain. These treaties seek to avoid double taxation on income and ensure that companies do not pay tax on the same income in both countries. This provides legal certainty and reduces the tax burden for companies operating in both territories.

Other tax aspects

In addition to the mentioned taxes, it is important to consider other relevant tax aspects when moving a company to Bulgaria. 

These include the transfer pricing regime, withholding taxes on foreign payments, reporting obligations, and local accounting and auditing laws. It is essential to understand and comply with all tax regulations in Bulgaria to avoid penalties and legal problems.

Advantages of moving your company to Bulgaria

The transfer of your company to Bulgaria not only implies tax benefits, but also offers other advantages that can be key to the success of your business.

Next, we will explore some of the main advantages that Bulgaria offers to Spanish companies.

Lower operating costs

Bulgaria is characterized by having lower operating costs compared to Spain and other European countries. Salaries and rental costs for offices and retail space are significantly lower, which can help reduce overhead and improve your company's profitability.

Access to European markets

Bulgaria is strategically located in South East Europe, giving companies easy access to key markets in the region. The country is a member of the European Union and offers the possibility of expanding your operations to other European countries, taking advantage of the benefits of the single market.

Skilled labor force 

Bulgaria has a highly qualified workforce with a high level of education. Many young Bulgarians have a good command of English and other foreign languages, which makes it easy to communicate and collaborate with international partners.

Another important aspect to highlight is that the country has high-quality universities and training centers that can provide a constant flow of talent.

Favorable business environment 

Bulgaria has implemented a series of reforms and measures to promote foreign investment and encourage business development.

The government has simplified administrative procedures, reduced bureaucracy, and established support programs for companies establishing themselves in the country. These initiatives help create a favorable business environment and stimulate innovation and growth. 

Our expert law firm in transferring Spanish companies to Bulgaria 

At our law firm, we are experts in legal and tax advice for companies wishing to relocate to Bulgaria from Spain. We have a team of highly qualified professionals with extensive experience in tax and commercial law in both countries. 

We offer a personalized approach adapted to the needs of each company. Our services include the incorporation of the company in Bulgaria, tax planning, advice on legal and labor aspects, the management of administrative procedures and compliance with all tax and accounting obligations.

If you are considering moving your company to Bulgaria to benefit from its favorable taxation and the advantages it offers, do not hesitate to contact us. We will be happy to help you make this transition successful and hassle-free.

In a definitive way we can highlight that Bulgaria has become an attractive destination for Spanish companies that seek to optimize their tax situation and expand their operations in Europe. 

Its competitive tax system, along with other advantages such as lower operating costs, access to European markets, and a skilled workforce, make Bulgaria an option to consider.

If you are thinking of moving your company, our law firm can provide you with the necessary expert advice to facilitate this process. Do not wait any longer and take advantage of all the opportunities that Bulgaria has to offer you. Contact us today and we will be willing to help you in this process. Join the investment companies in Bulgaria.


If you are considering moving your company to Bulgaria, do not hesitate to contact Forcam Lawyers. Our Expert Lawyers in Companies will study your specific case. We offer assistance and legal advice in Companies in Bulgaria. In addition, we have:

Law firm in Barcelona
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