BREXIT – happy end or impasse?

After months of negotiation, the UK and EUhave agreed a BREXIT deal.

Exactly at 11 o’clock on Friday, 29 March2019 – UK leave the EU.  It can beextended if all 28 EU members agree, but at the moment all sides are focusingon that date as being the key one.

So BREXIT is definitely happening.

Many questions still have no answer like – Whatare the consequences and what are the advantages? Is BREXIT a “happy divorce”between the UK and EU? What happens after BREXIT?

We will focus the attention to the business development and the agreed free movement of people and goods.

However, let`s say that if no trade deal isin prospect by July 2020, the two sides could agree to extend the transitionperiod instead. Thus, the UK will keep good trade relations with the EU flowingas it does now.

So, we may say that Great Britain will notlose so much from its EU leaving, at least not in. the nearest future. 

In any case, from another point of view –what happens with the UK business if it is strongly connected to other EUcompanies, more popularly speaking – B2B?

For example, let us take the UK freelancerswho have so far successfully done their business with other EU clients? Isthere a solution for them and if yes, what is the best?

Generally speaking, the best is to startdealing by using company incorporated within the EU.

And here is the question – where?

In long, we can say that Bulgaria still keeps the first place on the lowest corporatetax in a European Union – 10% flat rate. But that’s not all that a freelancer is interested in, not at all! Here are few more important benefits:

  • VAT within the EU 0%
  • Dividend Tax within the EU 0-5%
  • Dividend Tax Third countries (Flat) 5%
  • Double taxation avoidance treaties with 80countries, including UK
  • No WTH within the EU
  • Secure bank system.

Acting as a key corridor between Asia and Europe and providing perfect tax environment, Bulgaria may provide many advantages, especially for growing up businesses. 

For more information on how to open a company in Bulgaria you may contact us here

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