Bulgaria among the series of states in Eastern Europe representing investment objectives of new points of interest a foreign investor, seeking to invest in Eastern European economy that is great momentum for growth. Global investment policy framework East European economy and tax system to drive in Bulgaria you can say that the channels of investment that a foreign investor offers Bulgaria are extremely diverse.

Company is tax resident in Bulgaria if the union in Bulgaria, the tax imposed on companies residency Bulgaria is the rate of 10%. While residents of the Bulgarian companies completeness tax on income from any source, foreign companies completeness tax only on income from Bulgaria. As part of the will of the legislature to encourage investment in Bulgaria Bulgaria combat the unemployment problem in Bulgaria, a number of incentives that were set when there are, companies will enjoy the tax rate reduction. For example, a company that operates in areas where there is a high percentage of unemployment, can enjoy a 10% reduction in price in certain fixed assets purchased by the company, a company engaged in manufacturing a farmer can benefit reduction rate of 60% and more. Another example is the duty reduction in National Insurance payments paid employer in relation to new employees in areas of high unemployment.

Tax rate paid by the companies’ corporation will be returned fully to his actions and manufactures to invest in areas of high unemployment and in some cases in others by law.

A single resident of Bulgaria pays tax on income from any source. Single non-resident of Bulgaria, only capsule on the revenue Bulgaria.

Bulgaria is considered a single resident income tax of interest whether there who are following conditions:

He has a permanent residential address in Bulgaria. It should be noted that if a single permanent address in Bulgaria, but his center of vital interests is outside of Bulgaria, he may not be considered a tax resident of Bulgaria.

Stayed in Bulgaria for more than – 183 days of each period of 12 consecutive months.

Center of vital interests is in Bulgaria. Center of vital interests is determined on the basis of personal ties and economic order only when examining the question tests location, possession of property, where only one employee, a professional or economic activities and more.

Tax imposed on the majority of individuals income Bulgaria is progressive rates of up to 24% tax on annual income of 7,200 BGN (Bulgarian currency). Here are the tax rates imposed on a single in Bulgaria (as for 2007):

Annual income up to a height of up to 2,400 BGN not have tax.

To the total annual income of up to 2,400 BGN total of 3,000 BGN must tax at the rate of 20%.

To the total annual income of up to 3,001 BGN total of 7,200 BGN must tax at the rate of 120 BGN and 22%.

Annual income than the total of 7,200 BGN must tax at the rate of 1,044 BGN and 24%.

It should be noted that there are certain income tax rate on them is permanent and progressive.

In general, earnings capital pays tax as the other income in Bulgaria.

Certain income tax-free income that applies to individuals, such as income certain activities in the capital market, income and transfer of real estate assets under certain conditions (applies to residents of Bulgaria or the European Union – Earnings for the sale of land designated for residential purposes once a year and up to two spaces for the sale of real estate ” Estate for a year provided more than five years have passed from the date of purchase until the day of sale of land in Bulgaria solvent removal), interest received deposits banks, gambling revenue, National Insurance payments, benefits provided by the eye and tax employer et al.

Foreign Taxes, which pays a single benefit from double tax treaty to prevent the credit provided in the face of tax which have only one in Bulgaria.

Non-resident of Bulgaria is entitled to benefit from double tax treaty to prevent a pre-condition grant certificate of visas in Bulgaria the tax authorities in accordance with a procedure-specific benefits. In sum, the tax system in Bulgaria, described by its encouraging to foreign investors, stability Bulgaria’s economy grows in recent years due as a skillful , investment costs low, an excellent strategic location (the location of Bulgaria allows her to be the basis for international companies active market penetration in the region), along with economic environment gets up in Eastern Europe, the rise of prices and conditions for major funding of the attractive local banks with Bulgaria joining the Union European, leading lessons profitable high investments in Bulgaria.