Tax agent in Bulgaria: why you do need one before doing business in the country

There are many reasons for investors and entrepreneurs to consider doing business in Bulgaria. We will discuss the most important ones and detail the aspects that may be challenging, as well as why your business needs a tax agent in Bulgaria. 

With a stable financial environment, an advantageous tax system, and an array of opportunities available to foreign investors, Bulgaria has placed itself among the most interesting countries in Europe to do business. 

In order to best take advantage of the possibilities Bulgaria has to offer to investors and entrepreneurs, your company will need the services of an accounting company or a tax agent in Bulgaria that can take care of all the financial needs of your business, allowing you the time and freedom to work on growing your business and focusing in achieving success. 

Accountancy Bulgaria is the best option for an entrepreneur or investors looking to open a company in Bulgaria, as they will need the service of experts for their day-to-day bookkeeping needs, as well as a tax agent in Bulgaria that has deep knowledge of the financial system, tax laws, and can design tailored accounting strategies for your business.  

Now let’s go deep on reasons to start a business in Bulgaria, looking at the country’s financial system and why it is better for you and your company to hire a local tax agent. 

Reasons to invest in Bulgaria

We are going to list some of the reasons to invest in Bulgaria.

·       Stable currency and a stable financial system. Since 1997, the currency has stayed stable offering security to investors. The stable financial system is also an attractive point for investors looking to start a business in Bulgaria.

·       Favorable tax system. Bulgaria has one of the most beneficial tax systems in Europe with a flat rate of 10% on corporate income and also a 10% flat rate on personal income. The system is straightforward, without hidden loopholes, or prepayments. Your tax agent in Bulgaria can assess you on how to best take advantage of the tax system.

·       Bulgaria is part of the EU. And also NATO and WTO. This means that European investors will find it easier to start a business and deal with the banking system.

·       An educated workforce and lower labor costs. The workforce in Bulgaria is cheaper, remaining highly educated and often multilingual. Social security contributions are also lower than in the rest of Europe. 

·       Lower costs. Overall, Bulgaria is cheaper than other European countries, and this can represent an attractive point for investors looking to reduce operational costs. 

Read also: 5 reasons to hire a Tax Specialist in Bulgaria

Financial system in Bulgaria

One of the appeals of Bulgaria for businesses to settle and expand, apart from the tax system that is based on a flat rate of 10% on corporate income, is the fact that Bulgaria has enjoyed a pretty stable and secure financial environment.

As part of the European Union, and with a strategic position, Bulgaria has worked hard to establish a strong financial system that is attractive to foreign businesses. Counting with the support of a tax agent in Bulgaria is a must to best take advantage of the tax laws, incentives, and the wide variety of benefits in place for foreign investors.

Why do you need a tax agent in Bulgaria?

Your tax agent in Bulgaria can help you best take advantage of the tax system and financial incentives in place for foreign investors. 

While we usually mention how simple the tax system is in Bulgaria, there are a few challenges that would make it hard for investors or entrepreneurs to take care of it by themselves. First, there is the language barrier, as all official documents are in Bulgarian. This alone is a good reason to engage the services of a local accountant. 

But there are also other reasons that make it a good idea (a profitable idea as well) to have a tax agent in Bulgaria. They can help with annual reports, keep the necessary documentation for eventual audits and be valuable professional representation for your company. 

Read also: Certified public accountant VS normal accountant in Bulgaria: how to choose one

Conclusion

Bulgaria is an attractive European country to do business, thanks to its stable financial system and tax laws. 

Counting on the services of a tax agent in Bulgaria is a must to best profit from the business opportunities in the country. We can recommend Accountancy Bulgaria, a company with experts with decades of experience helping companies achieve the success they are looking for. Accountancy Bulgaria can help deal with the most basic bookkeeping, all the way to tax reports, and audits, and even be a valuable asset during the process of registering a company in Bulgaria.