Financial Crime World

Bulgaria Offers Favorable Conditions for Crypto Businesses

SOFIA, BULGARIA - With its low costs and favorable tax regime, Bulgaria is emerging as an attractive destination for crypto companies looking to establish a presence in the European Union. According to Regulated United Europe (RUE), a leading provider of legal and compliance solutions for FinTech projects, Bulgaria’s business-friendly environment makes it an ideal location for crypto businesses.

Company Registration

To set up a company in Bulgaria, entrepreneurs will need to prepare several documents, including:

  • Articles of Association, which outline the purpose, structure, and management of the company
  • Proof of identity and residence for owners and managing directors

RUE can assist with preparing all required documentation, including notarization and certified translation. The state fee for company registration is 55 BGN (approximately 28 EUR), payable to the Commercial Register of the Registry Agency. Additional fees may apply for services such as reserving a company name.

Taxation

Crypto companies must register as taxpayers in Bulgaria and pay general taxes, including:

  • Corporate Income Tax at a rate of 10%
  • Withholding Tax of 5% on dividends distributed to shareholders
  • Employers and employees contribute to social security funds, with rates ranging from 4.8% to 13.72%

Bulgarian companies with over 50,000 BGN (approximately 25,600 EUR) in annual turnover must register for Value-Added Tax (VAT). The standard VAT rate is 20%, although cryptocurrencies are exempt from VAT across the EU.

Reporting Requirements

Bulgarian companies must adhere to financial reporting requirements outlined in:

  • Accountancy Act of 2015
  • Independent Financial Audit Act of 2016

While cryptoassets do not need to be included in tax returns, companies must report such holdings in their annual financial statement. Audit exemption applies to companies that meet certain criteria, including:

  • Total assets of less than 2 million BGN (approximately 1 million EUR)
  • Total revenue of less than 4 million BGN (approximately 2 million EUR)

Expert Assistance

RUE’s team of experts can guide entrepreneurs through the application process for a Crypto License in Bulgaria and provide assistance with:

  • Company formation
  • Financial accounting
  • Tax optimization
  • AML/CTF policies and license applications

For more information or to schedule a consultation, contact RUE’s customer support team:

Contact RUE today to take advantage of Bulgaria’s favorable conditions for crypto businesses.