Is Bulgaria in the EU? YES! Here is how and why

Bulgaria is a beautiful country with a wide variety of natural areas that range from mountains, with some great skiing facilities, to beach towns on the Black Sea. The country has also a rich history stamped on the architecture of cities like Sofia or the beautiful Plovdiv and Varna. 

While little is usually known about Bulgaria, there is no doubt that the country has directed many efforts in the last decade to promote tourism and to show the country as a force for the future, with interesting and appealing tax laws and a welcoming business environment.

Although the Soviet imprint is still visible today in the customs and traditions of the Bulgarian population, as well as in history, art, and architecture, not everyone knows that Bulgaria is in the EU: It has been in the European Union since 1st of January 2007. 

Is it good news for those who are interested in moving physically and fiscally in Bulgaria? Let’s find out more.

Read also: Looking to move your company to Bulgaria? All you need to know

The History of Bulgaria and the EU

Bulgaria joined the European Union on the first of January 2007. The country has also been a member of NATO since 2004.

Many would argue that Bulgaria has not yet been able to fully benefit from the EU programs and incentives, remaining a bit of a slow partner and a silent voice in the future of the European Union. This has been more obvious with the struggles caused by the war in Ukraine. Indeed, it was probably this conflict that pushed Bulgarians to see the advantages of belonging to the EU and decided to make a change that will position Bulgaria at the same level as other members of the EU, eventually becoming part of the Eurozone and in the process currently of joining the Schengen area. 

In what some call a European awakening, Bulgaria has shifted toward policies that will guarantee they truly belong to the European family, possibly becoming another EU success story.

What does this mean? Well, the country is becoming a stronger and fuller member of the EU, which eventually will mean that when help is needed they will have the backing of the Union. And this is important for companies trying to set roots in Bulgaria.

Political instability and economic uncertainty were one of the main issues that will prevent the country from growing and have so far pushed its full conversion to the euro. 

This is changing, and the future looks promising.

Read also: Bulgaria VAT: Rates, system and how it works in the Country

Bulgaria welcomes European companies

One of the main goals of the government is to stimulate the local economy. In order to do that, the country is welcoming European companies to settle in Bulgaria, making company registration in Bulgaria simple and quick, and offering incentives for businesses that use local labor and promote areas with high unemployment. 

There are a myriad of reasons to entice foreign companies to move to Bulgaria. 

For a while now, it is one of the main goals of government policy to promote a favorable business climate in order to attract more businesses, remaining politically and financially stable, which is visible through the balance of the local currency exchange compared to the euro.

Additionally, Bulgaria has simplified the process of company registration in Bulgaria, reducing the minimum capital for an LTD to simply 2 BGN (or 1 euro), and modifying the tax system to make it more attractive and efficient, being one of the only countries with a flat company tax rate in Europe. And a lower one, for that matter.

Finally, Bulgaria has also signed treaties with more than 60 countries around the world to avoid double taxation, sealing the deal on its appeal to European and foreign companies to decide to move to Bulgaria.

Are you interested in setting your business to Bulgaria but don’t know where to start? Accountancy Bulgaria is here to help you. With over 30 years of experience working in various countries, Herman Van Der Mosen’s accountancy company in Bulgaria will support you in every step required to register your company in Bulgaria.

The Future of Bulgaria in the EU

Bulgaria has not yet achieved the goal of becoming a member of the Eurozone. However, it is very close. It is expected for the country to finally qualify in the next few years. In fact, the commitment to adopt the euro and leave the Bulgarian leva behind has already been signed and it’s a matter of time now.

Bulgaria, while already an EU member, does not belong to the Schengen area. Currently, it’s in the process of changing that, and hopefully, soon it will benefit from the same advantages as other European countries, especially, free traveling and no border checks. This is expected to boost the moving of foreign companies to Bulgaria, as it would make it even easier. 

Both these changes to come, will further the country’s European awakening and hopefully boost the local economy and make Bulgaria a strong presence in the region, as well as a business choice for companies.