Accountants Bulgaria: Who is Aidos?

Welcome to the website of Aidos – Accountants Bulgaria. We are a company dealing with the administration part of your business. Our services include: bookkeeping & accounting, payroll, VAT and tax preparation and company registrations.

We choose our website to be in a weblog format. In this way we are aiming to create a continuously refreshing and growing knowledge base. Below here you’ll find posts on topics related with doing business in Bulgaria, changes in the law, introductions of our clients and more, what we think may be of interest for you. By following the links in the right hand menu you can find more information about us, our services, or on specific subjects. When you feel something is missing just let us know and we will add it.

When you cannot find here what you are looking for, don’t hesitate to contact us.

Thanks for visiting us here!

The Aidos team

Aidos Accountants Bulgaria

 

Starting business in Bulgaria

Starting business in BulgariaStarting business in Bulgaria is becoming more and more popular. Many people and companies from all over the world are coming to Bulgaria to enjoy the pleasant business environment. Advantages are for example; Bulgarian is a member of the European union since 2007. Compared with other European countries it has a low salary level, an overview of the average salaries per sector you find here on the website of the National statistic Institute. But besides that the level of education is high.

Bulgaria is a fast developing country in the Balkans with many opportunities for investors, entrepreneurs and startups. Earlier this year Bulgaria was awarded Offshoring Destination of the Year at the European Outsourcing Association Awards 2015. Recently forbes has announced Sofia as one of the top 10 cities to launch your startup. Not only the pleasant business environment has it advantages also the favorable 10% flat tax rate gets many interested in starting business in Bulgaria

The most common form for starting business in Bulgaria is the Limited Liability Company (Ltd.). In Bulgaria there are two forms of Ltd.;

  • Single owner Ltd. (EOOD)
  • Multiple owner Ltd. (OOD)

The company can be owned by natural persons or, one or more companies. the minimum capital to be deposited is currently 1 Euro. The initial registration takes about a week. The application for a VAT number, when required, takes two weeks.

“Newly registered companies do not automatically enter the VAT system; your company has neither obligations nor rights concerning VAT in Bulgaria.
Registering for VAT becomes compulsory when; your company has more than 50’000 BGN turnover over the last 12 months or your company has business outside of Bulgaria. You send invoices to countries other than Bulgaria. You can voluntarily register your company for VAT at any time and at any turnover.”

The director(s) of the new company have to be physically present to open a bank account and deposit the capital. And sign the incorporation documents and a power of attorney in front of a notary. This will take no more than half a day. All procedures can be done from distance, in which case certified translations and apostille are required.

What we do for you starting business in Bulgaria;

  • Preparing all necessary documentation in Bulgarian and English.
  • Organize and join you to the meetings at the bank and notary.
  • File the documents at the Registry Agency.
  • Order a company stamp.
  • Collect the company documents when ready.
  • Open your current bank account(s).
  • Apply for VAT registration.

For more information on other company forms like a joint stock company or a holding company please contact us.

Our price for setting up your company is 950 Euro. This is includes all the above mentioned steps and all state and notary fees involved. We will deliver your company “ready to go”.

When you are interested in starting a company in Bulgaria please fill in our online questionnaire and one of our colleagues will contact you within 24 hours to guide you through the process.

 

Public Holidays Bulgaria 2016

Holidays Bulgaria 2016

holidays bulgaria 2016Finally the sunny days are over in Bulgaria. A good time to start thinking about and planning your holidays for 2016.

In many cases the days between the public holiday and the weekend are given as days off, and then compensated by a working Saturday later or earlier in the month. This goes for the the whole country on decision by the Government.

Here you will find an overview of the public holidays Bulgaria 2016, the most important name days and the school holidays in Bulgaria. And don’t forget, 2016 is a leap-year we have one more working day in 2016!

The Christmas holidays for this year (2015) are from December 24th till December 27th. The coming New Year’s holidays are from December 31st 2015 till January 3rd 2016. There will be one more working Saturday on December 12th this year.

The public holidays Bulgaria 2016

January 1st – New Year’s day
March 3rd – Bulgaria’s Liberation day (holidays from March 3 – March 6; and a working Saturday on March 12)

“On March 3rd Bulgaria celebrates the regaining of its freedom after being ruled for about 500 years by the Ottoman Empire. On this date, following a major military campaign lead by Russia against the Ottoman Empire in 1877-78, a peace treaty was signed in San Stefano, which led to the formation of modern Bulgaria.”

May 1st, 2nd – Easter

“On this day orthodox Christians mark Easter and the resurrection of Jesus Christ. Bulgarians celebrate it by having traditional Easter cozonac (a kind of sweetened bread) and decorating boiled eggs.”

May 1st – Labour day
May 6st – Saint George’s Day

“It is the official Bulgarian Armed Forces Day. It is celebrated as such all around the country and a traditional military parade is being organized every year in Sofia, the capital.It is also the most celebrated name day in Bulgaria.”

May 24th – The day of Bulgarian enlightenment and culture and the Slavic literacy. (holidays from May 21 – May 24; and a working Saturday on May 14)

“On this day Bulgarians celebrate the work of Saint Cyril and his brother Saint Methodius. They invented the first Slavic alphabet – the Glagolitic alphabet, which later became the Cyrilic alphabet, now used all around the Slavic world.”

September 6th -Unification Day (holidays from September 3 – September 6; and a working Saturday September 10)

“On this day Bulgarians celebrate the unification of Eastern Rumelia with the neighbouring Principality of Bulgaria back in 1885 thus forming modern Bulgaria.”

September 22nd – Independence Day Bulgaria (holidays from September 22 – September 25 and a working Saturday on September 17)
December 24th – Christmas eve

“Christmas eve is when the entire family gathers around the table. In Bulgaria Christmas eve is a bigger event than Christmas itself. Tradition dictates that there should be an odd number of meals on the table and all of them without meat, or any other animal products. This marks the end of 40 days of fasting.”

December 25th, 26th – Christmas
December 31st – New Year’s eve

School holidays 2015/2016

Christmas holidays
December 24,  2015  – January 3, 2016

Winter holidays
January 30, 2016  – February 7, 2016

Spring holidays for 1st – 11th grade
April 2, 2016 – April 10, 2016

Spring holidays for 12th grade
April 2, 2016 – April 4, 2016

When does the school year ends?
1 grade  – 24th of May 2016
2 – 4 grade – 31st of May 2016
5 – 8 grade – 15th of June 2016
8 grade – classes with intensive study on foreign language accepted after 7th grade
30th of June 2016
9 – 11 grade – 30st June 2016
12 grade – 13th of May 2016

Most important name-days in Bulgaria

Bulgaria has a strong tradition in celebrating name-days. It is common that you congratulate a person having a name day and often special celebrations are held. See here the most important ones.

  • January 1st – Vasilovden
  • January 6th – Jordanovden
  • January 7th – Ivanovden – St. John the Baptist
  • January 18th – Atanasovden – St. Athanasius of Alexandria
  • February 28th – Todorov den
  • The sixth Sunday after the Great Fast – Cvetnitsa
  • May 6th – Gergyovden
  • October 14th – Petkovden
  • October 26th – Dimitrovden
  • December 6th – Nikulden
  • December 27th – Stefanovden

A complete list of all the name-days you can find here.

 

Tax Considerations on selling property in Bulgaria

Selling property in Bulgaria

Selling property in Bulgaria

Basically the tax rate in Bulgaria is 10% for individuals and same for corporations. Unless you are actually working in Bulgaria (legally), you are unlikely to have to pay any tax on a regular basis unless you selling property in Bulgaria at a profit. Here is a quick overview of the tax situation when selling a property.

Much will depend on where you are deemed to be resident. If you are still resident in the UK for tax purposes then any profit could be taxed here in Bulgaria and subject to a withholding tax, but you may still have to pay additional tax in the UK depending on what other income or capitals gains you have that year.

If you are resident in Bulgaria for tax purposes i.e. have a permanent address here in Bulgaria, spend over 183 days here in any 12 month period and if your center of vital interests are here in Bulgaria.

Presuming you are resident in Bulgaria for tax purposes then the Bulgarian Individuals Income Tax Act states that personal incomes from the sale or exchange of real estate (apartment, land, buildings) is free of tax if you sell only:

  1. a) one residential property, if between the date of acquisition and the date of the sale or exchange is more than three years;
  2. b) two properties, as well as agricultural and forest properties regardless of their number, if between the date of acquisition and the date of the sale or exchange is more than 5 years.

Therefore if you are resident in Bulgaria for tax purposes and have owned the property for more than 3 years at the date of sale, then there should be no tax to pay, even if you make a profit.

To calculate if there is any profit on a sale, the (declared) purchase price is deducted from the (declared) sales price. If you have proper invoices for work done on the property you may be able to deduct these expenses as well.

 

Please contact us when you have any further questions on taxes and selling property in Bulgaria.

 

(By Rachel Gawith – The Travel Bug)