Starting a company or investment in Bulgaria, as in any other EU country, has its pros and cons. The Covid-19 pandemic has led the world to an unprecedented economic crisis. Therefore, your doubts about how such a business decision could be justified are completely vindicated. But we will try to dispel your fears.
There are several “pillars” on which our thesis is built, that now is the time to invest in Bulgaria or start a company here.
1. Drastically reduced VAT rates for tourism and restaurant business. Low taxes
In general, even before the pandemic, Bulgaria was among the countries with the lowest taxes in the EU (https://www.bulgarian-citizenship.org/low-taxes). Due to the Covid-19 pandemic, VAT rates for the tourism business (hotel owners) and the restaurant business have been drastically reduced from 20% to 9%. The measure is likely to be extended until May 2021, and possibly longer. If you invest now, you don’t risk much. The prices of the properties by the sea are lower than ever. Buying a property or land can guarantee you a good start in the tourism business. In addition, it will help a lot when applying for Bulgarian citizenship.
The VAT rate dropped from 20 to 9% for baby food, books and more.
2. The Bulgarian state takes serious care of foreign investors
Unless you are aggressively buying assets of strategic importance for the Bulgarian state (energy, healthcare, defense complex) or for the purpose of speculation on the market, the Bulgarian state will receive you with open arms. In a situation of global economic crisis, every investor is welcome in the country.
3. Opportunity to combine investment with obtaining of Bulgarian (EU) citizenship.
There are only three working Citizenship by Investment programs in the EU and the Bulgarian one is the best. This is because, unlike the programs of Malta and Cyprus, which have been criticized by the EU and have seriously tightened the application rules, the Bulgarian program has not made any drastic changes (yet).
Without much risk to the investment, you can invest your money in Bulgarian state bonds (Sovereign bonds, Eurobonds), Bulgarian municipal bonds or their derivatives. You could also invest in shares of Bulgarian listed companies on the Bulgarian Stock Exchange. The third solid investment opportunity is in a Trust account with the Bulgarian bank. Whichever option you choose for investment, this will guarantee you Bulgarian citizenship within 18 months! https://www.bulgarian-citizenship.org/
4. Investment in the real–estate (RE) market
For several years, the Bulgarian real-estate market has a reputation as the most progressive developing in Europe. The factors for this are many: a well-developed tourism business, a stable economy, low taxes, strategic location and more. Therefore, the answer to whether it is worth investing in Bulgarian real estate is: yes (https://euroformat.eu/is-it-worth-investing-in-real-estate-in-bulgaria-in-2020/).
A good move is to find a Bulgarian partner, which will provide you with access to government funding and European investment programs for various projects. Especially in the field of tourism. Or applying for programs to help employers in a Covid-19 pandemic. At least until you obtain Bulgarian citizenship yourself and have the opportunity to apply for such programs and projects.
5. It is mandatory to insure yourself legally before concluding a deal
Unfortunately, bureaucratic and legal difficulties in starting a new business are common in Bulgaria. Therefore, look for professionals in working with government institutions. Euroformat.eu is part of VD&A – an international law firm, which enjoys great authority both in Bulgaria and abroad.
VD&A experts specialize in Bulgarian Company Formation and Corporate Services. They solve problems quickly and without unnecessary costs. With them you will save a lot of unnecessary effort and money.