Bulgaria – an attractive choice in tax impasse

For a long time, all European Members have avoided their high tax rates by using the so-called “Tax Paradise” or the relocation of their businesses to offshore jurisdictions.

As we all know, this is an increasingly rare practice nowadays, and the reasons are many, but here are the basics:

  • Standard for Automatic Exchange of Tax and Banking Information (OECD) approved by 90 countries, allowing local offices to be fully aware of the personal assets and assets of individuals; A very important note here is that many offshore jurisdictions also signed the directive agreeing to exchange tax and bank information;
  • Tax collection – all these governments, signatories to the AOFI, have agreed to “liquidate the tax paradises” in order to achieve greater tax collection and eliminate the circumvention mechanisms;
  • Globalization – the process that collects the above two main reasons for the end offshore. This is the process of increasing the economic, social, technical, political and cultural interrelations and relations between the individual countries, organizations, people, ideas, capital, technology and elements of culture.

After all dramatic changes, the business looks for reasonable way out.

It is absolutely clear that there is no way to escape taxes, but what is the alternative?

For a long time, Bulgaria become more attractive among other EU Members with its attractive tax rates.

It may offer many opportunities for operationally active businesses all over Europe. The use of a Bulgarian company on its own or as part of an international structure may dramatically decreased than the global tax burden on the taxpayer.

The idea of the Bulgarian tax system is to be attractive, and not only by having one of the lowest tax rates in the EU. It is attractive because it is very simple, and because it is very easy and straightforward to apply.

Bulgarian taxpayers benefit from 10% rate of corporate profit tax and 10% personal income tax on their worldwide income (flat rate), no inheritance or gift tax in Bulgaria, from 0% to 5% dividend tax, as well as many other advantages that you can find more about here: https://www.zaraconsult.com/why-bulgaria/

This benefitial tax system is also very well protected against any changes as well and it works in a perfect way since 2007.

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