In the dynamically changing world of business and technology, Bulgaria is emerging as an attractive destination for various types of entrepreneurial initiatives and professional activities. Recently, potential clients have often asked us the question “What can we do in Bulgaria and how to register a company? Therefore, we decided to create this article, which, we hope, will answer all these questions.
From working in the profession to launching innovative FinTech companies, Bulgaria offers favorable conditions for development in a wide range of industries. In this context, choosing the right approach and navigating through complex regulatory and tax requirements can be a challenge, but also an opportunity for significant success.
This article examines 10 key directions for business and professional development in Bulgaria, which are attracting more and more attention from entrepreneurs and professionals. In it you will find answers to questions that excite everyone who is considering starting a business or developing their career in the country. Among the topics we will cover are working by profession, real estate investments, launching a technology startup, e-commerce, consulting, green energy, digital nomadism, tourism services, educational initiatives and courses, as well as financial technology (FinTech).
For each of these areas, we will look at the main legal and tax requirements, development opportunities and challenges you can face. In addition, we will address specific issues such as the requirements for exercising regulated professions, the legal frameworks for setting up FinTech companies, as well as the possibilities for financing projects in the field of green energy and innovation.
In this article, Elan Consulting will be your navigator in the complex world of Bulgarian regulations and business opportunities. Our advice and expert assistance will guide you through all stages of registration, tax planning and management of your business or professional activity. Whether it's recognizing a foreign diploma, registering a tech startup, accrediting an educational program, or starting a FinTech company, we're here to assist you every step of the way to success.
Now we will examine in detail all these 10 topics, starting with the work of the profession in Bulgaria and ending with the prospects for the development of the FinTech industry in the country. Read on to discover the answers to your questions and learn about the specific steps that will help you realize your business goals in Bulgaria.
Working in the profession in Bulgaria offers several significant advantages that can be attractive to both Bulgarian citizens and foreign specialists who are considering the possibility of settling in the country.
Firstly, Bulgaria offers a stable and predictable legal framework that regulates the exercise of various professions. This provides protection for both professionals and users of their services. By complying with legal requirements and professional qualification standards, professionals can make sure that their rights are protected and that they can exercise their profession with confidence in the legality and correctness of their actions. The Bulgarian legal system also provides opportunities to adapt qualifications acquired in other countries, which facilitates the integration of foreign professionals.
Secondly, Bulgaria is a member of the European Union, which significantly expands the opportunities for professional development and mobility. The recognition of professional qualifications between EU member states enables professionals not only to work in Bulgaria, but also to transfer their careers to other member states while retaining their professional status. This flexibility is an essential advantage for those who want to work in an international context or to extend their professional experience to a European level.
Finally, choosing to work in your profession in Bulgaria also offers attractive economic conditions. Compared to many other countries, the cost of living in Bulgaria is lower, while the quality of life remains high, especially in larger cities. This makes the country an attractive destination for professionals looking for a better work-life balance. Additionally, Bulgaria is developing as a technological and innovation hub, which opens up new career and development opportunities in various sectors, such as information technology, biotechnology and green business.
Working in the profession in Bulgaria combines the security of a well-regulated professional environment with the opportunities for international mobility and competitive economic conditions. This makes it an attractive choice for both domestic and foreign professionals looking for a stable and promising career.
Of course, before a person pursues his profession in Bulgaria, he must make sure that it is not a “regulated profession” within the meaning of Bulgarian law and the legislation of the European Union.
Regulated professions in Bulgaria are those for which the legislation requires a certain professional qualification, often proven by diplomas or professional certificates. According to the Law on Recognition of Professional Qualifications, these professions are included in a list adopted by decision of the Council of Ministers and promulgated in the State Gazette (Art. 3, para. 1). If a profession falls into this list, it requires certain documents and procedures for recognition of qualifications in order for the person to legally practice this profession in Bulgaria. For example, professions such as doctor, architect, and lawyer are among those that fall under this regulation.
In order to practice a regulated profession in Bulgaria, you must apply to the relevant competent authority for the recognition of your professional qualifications. For example, for doctors, this is the Ministry of Health, and for architects — the Chamber of Architects in Bulgaria (art. 4, para. 1). The procedure includes the submission of an application, which must be accompanied by evidence of the acquired qualification, such as diplomas and certificates, as well as possibly passing additional examinations or courses if the qualification is not fully equivalent to that required in Bulgaria (Art. 6 para. 1).
For persons who have completed their education and vocational training in another Member State of the European Union, there is a special regime for the recognition of professional qualifications. The law provides that these persons have the right to practice the profession under the same conditions as Bulgarian citizens, if the profession is the same or comparable to the relevant professional activity in Bulgaria (Article 7, paragraphs 1 and 2).
One of the important aspects when moving to Bulgaria and wanting to work in the profession is the recognition of diplomas and professional qualifications. Depending on whether the profession is regulated, you may be required to submit an application for recognition of qualifications to the relevant authority. For the medical professions, for example, this includes evidence of completed training as well as acquired professional experience. Additionally, for certain professions, knowledge of the Bulgarian language may be required, especially when the profession is related to patient safety (Art. 13, para. 2, item 2, para. 6).
For unregulated professions, the process is simpler and in many cases no formal recognition of qualifications is required, making it easier to start working in the profession. However, it is important to check whether the profession actually falls under the regulated ones, which can be done by checking the relevant list of regulated professions in Bulgaria.
If you are planning to start a small business related to your profession, it is important to know that the legislation offers various forms of registration that may suit your needs. Depending on the activity and volume of work, you can choose between a sole trader, a limited liability company (LLC) or a company with additional liability (AD), each of these forms has its advantages and requirements.
Elan Consulting can offer full support in relation to the recognition of diplomas, starting a small business, as well as tax and legal advice. The assistance that the company can provide includes preparation of documents, representation before the competent authorities, as well as consultations to optimize your business activity in Bulgaria.
If your profession is not regulated, this does not mean that you should not recognize your diploma. Although for many professions there are no specific legal requirements for the recognition of qualifications, there are a number of areas where even unregulated professions are subject to certain legal requirements, especially if they are specific activities or services.
For example, professions such as accountants, drivers, builders and others may be subject to special requirements specified in the relevant laws. In these cases, although the profession is not part of the list of regulated professions, it may be necessary to certify the qualification or acquire a license in order to legally practice this activity in Bulgaria.
According to the Law on Vocational Education and Training and the Law on the Recognition of Professional Qualifications, even unregulated professions may require recognition of foreign diplomas, especially if this is related to the right to pursue a professional activity in specific fields. These requirements are designed to ensure the quality of services and protect the public interest.
Investing in real estate in Bulgaria is an attractive choice due to several key factors. First, the country offers a stable macroeconomic environment with moderate inflation and stable Gross Domestic Product (GDP) growth. This provides predictability and certainty for investors looking for long-term capital investment opportunities. In addition, Bulgaria is part of the European Union, which provides additional guarantees for the legal protection of investments and free access to the EU common market.
Secondly, real estate in Bulgaria is often more affordable compared to other European countries, which makes investments extremely attractive for foreign investors. For example, the prices of apartments and commercial properties in large cities such as Sofia and Plovdiv are relatively low, but at the same time offer high returns through rents or future resale. Property investments, especially in tourist areas such as the Black Sea coast and winter resorts, offer opportunities to generate stable income through short-term rentals, supported by the growing tourist flow in the country.
Third, the regulatory environment in Bulgaria provides significant advantages for real estate investors. The legislation is clear and well-structured, which facilitates the process of acquiring property and their subsequent operation. Also, the costs of maintaining and managing properties in Bulgaria are relatively low, and the tax system is favorable for investors, including a flat tax of 10% on rental income, which is one of the lowest tax rates in Europe.
The legal framework for the ownership and management of real estate in Bulgaria is regulated by several basic laws. The main law governing property issues is the Property Law. This law regulates both the right of ownership and other property rights, such as the right of use and construction. According to Art. 28, para. 1 of the law, the property of individuals and legal entities may be all property, except for those that are exclusively state property or, by virtue of the law, are public state or municipal property.
Foreigners and foreign legal entities may acquire the right of ownership of land under the terms of an international treaty ratified under Article 22, paragraph 2 of the Constitution of the Republic of Bulgaria. They may also acquire the right of ownership of buildings and limited rights in rem to immovable property in the country, unless otherwise established by law (Article 29, paras. 1 and 2). For citizens of Member States of the European Union, the right to acquire land is regulated under the terms of the Treaty of Accession of the Republic of Bulgaria to the European Union.
The acquisition of real estate and the rights to it are subject to entry in the land register. The entries are of a public nature and are intended to give visibility to the acts that relate to the rights to immovable property, as well as to ensure that these acts are enforceable against third parties (art. 112, item a of the Property Act). Any act transferring the right of ownership or establishing another right in rem over immovable property must be registered in order to be opposable to third parties.
In addition, the Law on Condominium Management regulates issues related to the management and maintenance of common areas in buildings in condominium mode. According to this law, each owner of a floor or part of a floor is obliged to contribute to the costs of maintaining the common parts in proportion to his share in them. This ensures a fair distribution of burdens among the owners and ensures the good condition of the property as a whole.
Taxation of income from real estate is regulated in the Personal Income Taxes Act (ZDDFL). The tax on income from renting or selling real estate is 10%, which is one of the lowest rates in the European Union, which makes property investments even more attractive for investors.
Elan Consulting can provide significant support to its clients in all aspects of real estate investments. This includes legal advice on property ownership and management issues, tax advice related to tax optimization, as well as assistance in registering acts and other administrative procedures.
In addition, we provide full assistance in obtaining a residence permit on the basis of investment in real estate. According to the current legislation (the Law on Foreigners in the Republic of Bulgaria, every foreigner who wishes to obtain a VNG must invest not less than BGN 600,000 (about 310,000 euros) in real estate, and if he draws a loan, the loan funds must not exceed 25% of the total investment.
Launching a technology startup in Bulgaria offers unique advantages for entrepreneurs who want to take advantage of the rapidly developing technology sector. Firstly, Bulgaria has a well-developed IT infrastructure and a skilled workforce, which creates excellent conditions for the development and implementation of innovations. Cities such as Sofia, Plovdiv and Varna are home to numerous technology companies and startups, which creates a favorable ecosystem for the exchange of knowledge and experience. Also, the cost of renting office space and labor in Bulgaria is significantly lower compared to many Western European countries, which allows startups to effectively manage their budgets and invest in development.
Secondly, Bulgaria is part of the European Union, which provides unhindered access to the huge EU common market. This opens doors for Bulgarian technology companies to expand their business and reach customers across Europe. There are also various European programmes and funds that support innovation and start-ups by providing grants and financial incentives for the development of new technologies. This makes Bulgaria an attractive destination for start-ups seeking financing and support for their innovative projects.
Thirdly, the tax and legal framework in Bulgaria is extremely favorable for start-ups. There is a flat tax of 10% on corporate income, which is one of the lowest tax rates in the European Union. In addition, there are a number of tax breaks for investments in research and development, which incentivizes companies to invest in innovation and technology. This combination of favorable conditions makes Bulgaria an attractive destination for entrepreneurs who want to create and develop a successful technology startup.
The legal framework for starting and managing a technology startup in Bulgaria is well defined and provides clear procedures for business registration, management and taxation. The main law governing the creation of companies in Bulgaria is the Commercial Law. According to this law, legal entities can be registered under various legal forms, including a limited liability company (LLC) and a joint-stock company (JSC), the choice of legal form depends on the specifics of the business and the preferences of entrepreneurs.
The registration of a new company is carried out by filing an application with the Commercial Register managed by the Registry Agency. The application must be accompanied by a number of documents, including a Memorandum of Association, a decision to incorporate the company, and proof of contributed start-up capital. It is important to note that for a limited liability company, the minimum start-up capital is BGN 2, which makes it easier to start a small business in Bulgaria.
In addition, the Corporate Income Tax Act (CPA) regulates the taxation of legal entities in Bulgaria. As already noted, the corporate tax is 10%, and this also applies to technology startups. The law also provides for a number of tax incentives and incentives for investment in research and development. For example, research and development expenses can be deducted from taxable income, which further reduces the tax burden on companies investing in innovation.
Technology companies that develop software products can also benefit from intellectual property protection regulated by the Copyright and Related Rights Act. This law provides legal protection for software products as objects of copyright, which is essential for startups that create innovative technologies and products.
Elan Consulting can offer full support to its clients in all stages of start-up and development of a technology startup in Bulgaria. This includes legal advice on the choice of the appropriate legal form of the company, assistance in registration and submission of the necessary documents in the Commercial Register, tax advice and optimization of taxation, as well as protection of the intellectual property of newly created products and technologies.
E-commerce in Bulgaria is an extremely attractive opportunity for entrepreneurs who want to take advantage of the rapidly developing digital market. First, Internet penetration in the country is high, and the number of online buyers continues to grow with each passing year. This creates a stable base of potential customers who are used to shopping online and are looking for the convenience of door-to-door deliveries. Also, due to globalization and the increasing importance of digital technologies, Bulgarian online merchants can reach international markets with relatively small investments in marketing and logistics.
Second, e-commerce offers flexibility that is difficult to achieve in the traditional commercial sector. Through the use of modern technologies and e-commerce platforms, entrepreneurs can manage their online stores from anywhere, reducing the cost of maintaining physical objects and personnel. This makes the business model extremely cost-effective and scalable. In addition, e-commerce allows the easy implementation of innovative marketing strategies, including the personalization of offers and the use of consumer behavior analytics to improve customer service.
Thirdly, the tax and regulatory framework in Bulgaria is conducive to the development of e-commerce. A flat 10% tax on corporate income provides a competitive advantage, and additional tax breaks for small and medium-sized businesses make it easier to start and run online businesses. Bulgaria also offers significant incentives for digitalization and innovation, which can be used to finance the development of e-commerce.
E-commerce in Bulgaria is regulated by several basic laws that provide legal protection and clarity for both merchants and consumers. One of the key regulatory acts is the Electronic Commerce Act (EBA), which regulates the rules for the provision of electronic services and the conclusion of electronic contracts. According to Article 4, paragraph 1 of the ZET, the service provider is obliged to provide consumers with clear and unambiguous information about himself and the services offered, including contact details, terms of use and prices.
Another essential requirement is related to the protection of personal data of users, which is regulated by the General Data Protection Regulation (GDPR) applied in Bulgaria. According to this regulation, any company that collects and processes personal data is obliged to ensure adequate protection of this data and to inform users of their rights. This includes the right of access to personal data, the right to rectification and the right to erasure of data.
In addition, e-commerce is subject to the requirements for issuing tax documents, such as receipts and invoices. According to the provisions of the Law on Value Added Tax (VAT), each sale must be accounted for through a fiscal device or an integrated automated system for managing commercial activity (Art. 118, para. 1). Ordinance H-18 of December 13, 2006 regulates in detail the order and manner of registering and accounting for sales, and any violation of these requirements can lead to serious penalties, including coercive administrative measures such as sealing the object.
Elan Consulting can offer full support to its clients in the start-up and development of electronic business in Bulgaria. The firm provides legal advice on e-commerce issues, including compliance with GDPR and GDPR requirements, as well as assistance with online business registration and tax planning. Also, Elan Consulting can help with the implementation of business management systems that meet the requirements of Ordinance H-18.
Choosing to practice consulting in Bulgaria provides numerous advantages that can be key to the success of your venture. Firstly, the consulting sector in Bulgaria is in constant growth, thanks to the growing demand for expert knowledge and skills in various fields such as finance, project management, human resources, legal services and information technology. Companies, both domestic and international, are increasingly turning to external consultants to optimize their processes and remain competitive in the market.
Secondly, Bulgaria offers a favorable tax environment for consulting firms. With its flat 10% tax on corporate profits and the absence of additional corporate taxes, the country is an attractive place to register and run a consulting business. In addition, the administrative costs and salaries of qualified staff are relatively lower compared to other European Union countries, which increases the potential profitability of consulting services.
Third, consulting in Bulgaria allows professionals to benefit from a wide range of clients, including small and medium-sized businesses that need expert advice but do not have the resources to hire a full team of in-house specialists. This provides an opportunity to build long-term partnerships and expand the client base, both in Bulgaria and internationally.
Consulting activity in Bulgaria is regulated by several key laws that regulate both the legal and tax aspects of this type of business. The main regulatory act that regulates the registration and operation of consulting companies is the Commercial Law. According to it, consulting services can be provided through various legal forms, including sole proprietors (ET), limited liability companies (LLC) or joint-stock companies (JSC). The choice of legal form depends on the scale of the business and the preferences of the owner.
After the registration of the company, the consulting activity is subject to taxation under the Corporate Income Tax Act (Corporate Income Tax Act). The corporate tax rate in Bulgaria is 10%, which is one of the lowest tax rates in the European Union, which makes Bulgaria an attractive destination for consulting companies. The CPA also provides for opportunities to reduce the tax base by recognising various expenses related to the activity, such as office rental costs, employee salaries, and training and qualification costs.
Another important regulatory act that is relevant for consulting activity is the Personal Data Protection Act (PDPA). Consulting companies often process personal data of their clients and partners, which is why it is mandatory to comply with the provisions of the GDPR and the General Data Protection Regulation (GDPR). According to these regulations, companies are obliged to ensure adequate protection of personal data and to inform customers about the purposes and methods of processing their data.
In addition, consulting firms that offer services in specific regulated areas, such as legal or accounting advice, must also comply with relevant sector regulations. For example, legal advice is regulated by the Law on Advocacy and accounting services are regulated by the Law on Accounting. These laws provide for licensing and professional liability requirements that must be strictly adhered to.
Elan Consulting can provide comprehensive support for starting and developing a consulting business in Bulgaria, including legal advice on the issues of company registration, tax planning, as well as compliance with regulations related to the processing of personal data and the provision of specific consulting services. The firm can also offer solutions to optimize business processes and maximize profits.
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Sustainable agriculture represents a key direction for development, especially in light of global environmental challenges and the need to conserve natural resources for future generations. In Bulgaria, this model of agriculture offers numerous advantages that are both economic and environmental. First, sustainable agriculture promotes the use of natural methods of growing crops and animals, resulting in healthier products that meet the growing demand for organic and bio certified foods. This in turn opens up opportunities for Bulgarian manufacturers to position themselves on the domestic and international market as suppliers of high quality products.
Secondly, sustainable agriculture is about the conservation and rational use of agricultural resources. Through the application of techniques such as crop rotation, composting and the use of natural fertilizers, farmers can improve soil fertility and reduce their dependence on chemical substances. This not only reduces production costs, but also minimizes harmful environmental impacts while preserving soil health for future generations. In addition, sustainable agriculture helps to preserve biodiversity, which is key to the stability of ecosystems.
Third, Bulgaria provides a favorable environment for the development of sustainable agriculture, thanks to the availability of natural resources and the relatively low cost of agricultural land. The European Union actively supports sustainable agriculture through various programmes and subsidies that can be used to implement environmentally friendly technologies and practices. This provides Bulgarian farmers with significant opportunities to finance and develop their farms in a way that is in harmony with the environment.
The taxation of sustainable agriculture in Bulgaria is regulated by several basic laws that provide preferential conditions for farmers. Under the Personal Income Tax Act (ZDDFL), farmers who carry out their activities within the framework of sustainable agriculture can benefit from tax breaks. For example, income from agricultural activities can be taxed at a reduced tax rate or even exempt from tax for a certain period if certain conditions related to environmental protection and the use of environmentally friendly methods are met.
In addition, under the Corporate Income Tax Act (Corporate Income Tax Act), legal entities engaged in sustainable agriculture can also benefit from tax breaks. Expenses related to the implementation of environmentally friendly technologies and practices, such as the use of organic fertilizers or investments in renewable energy sources, can be deducted from taxable income. This encourages farmers to invest in sustainability and innovation while optimizing their taxation.
The registration of a farm that intends to carry out sustainable agriculture should be carried out according to the requirements of the Commercial Law, if the farm is a legal entity, or through registration in the system of the National Revenue Agency (NRA) for individuals. It is important to note that farmers must also be registered in the relevant registers of the Ministry of Agriculture, Food and Forestry, especially if they intend to apply for European subsidies and support.
Sustainable agriculture accounting involves strict accounting of income and expenses related to the activity. This includes keeping separate accounting books for different types of crops and animals, the use of environmentally friendly methods and technologies, as well as accounting for subsidies and tax deductions. Proper accounting is key to the successful management of sustainable agriculture and to ensure transparency to tax authorities.
Elan Consulting can provide full support to farmers who want to engage in sustainable agriculture in Bulgaria. The company offers legal advice, tax advice, as well as registration and accounting services, in accordance with the requirements of the legislation and the specific needs of the farm.
Digital nomadism is gaining more and more popularity all over the world, and Bulgaria is emerging as an attractive destination for people who want to combine work and travel. Firstly, Bulgaria offers extremely advantageous living conditions at low costs compared to other European countries. This includes affordable rentals, cheap transportation costs, and reasonable prices for food and services. For digital nomads, who often work remotely and rely on stable internet access, Bulgaria provides a high quality of life at competitive prices, allowing them to increase their savings and invest more in their projects or trips.
Secondly, Bulgaria is a member state of the European Union, which provides seamless access to the entire territory of the EU for citizens of the member states. This allows digital nomads to easily travel and work in different European destinations while using Bulgaria as their main base. In addition, the country has a well-developed infrastructure and a high level of Internet connectivity, which is essential for people who rely on technology for their work.
Third, Bulgaria offers a variety of natural and cultural attractions that make the life of digital nomads more interesting and full of fun. From the beaches of the Black Sea to the mountains and historic cities such as Plovdiv and Veliko Tarnovo, Bulgaria offers many opportunities for recreation and getting to know new cultures. These advantages, combined with the friendly local culture and diverse culinary traditions, make Bulgaria an ideal place for digital nomads who want to combine work with adventure.
Taxation of the income of digital nomads who work from Bulgaria depends on several factors, including their tax resident status and the type of income they receive. According to the Personal Income Taxes Act (ZDDFL), persons who spend more than 183 days in Bulgaria within a calendar year are considered tax residents and subject to taxation on their worldwide income. This means that digital nomads who reside in Bulgaria for an extended period of time must declare and pay taxes on all their income, including those generated outside Bulgaria.
Bulgaria applies a flat tax of 10% on personal income, which is one of the lowest rates in the European Union. This is a significant advantage for digital nomads who are looking for ways to optimize their taxation. In order to avoid double taxation, digital nomads who have income from other countries can take advantage of the international agreements for the avoidance of double taxation that Bulgaria has concluded with numerous countries.
The registration of the activity of digital nomads in Bulgaria is relatively easy, with the most common forms being self-employed persons or registration of a sole trader. Self-employed persons must register with the National Revenue Agency (NRA) and keep accounts, in accordance with Bulgarian legislation. To do this, it is necessary to file an annual tax return and pay advance contributions on income tax.
For digital nomads who prefer to operate through their own company, registering a limited liability company (LLC) is another popular option. This form of legal entity offers limited liability and allows the person to separate their personal finances from those of the business. The accounting of an LLC must be kept in accordance with all the rules of the Commercial Law and the Accounting Act, including double bookkeeping and filing annual financial statements.
Elan Consulting can offer comprehensive support to digital nomads in the registration and management of their activity in Bulgaria. This includes advice on taxation issues, assistance in the registration of self-employed persons or companies, as well as professional accounting in accordance with the Bulgarian legal requirements. The firm also provides advice on tax optimization and tax compliance, which is key to successfully managing digital nomads' income and finances.
Digital nomads who wish to live and work in Bulgaria for an extended period of time have at their disposal three main options for obtaining a residence permit. Each of these options provides specific rights and obligations, depending on the nature of the activity and the legal status of the person.
The first option is to obtain “EU Blue Card”, which is intended for highly qualified specialists from third countries. The EU Blue Card grants its holder the right to reside and work in Bulgaria and is suitable for digital nomads who have high qualifications and want to work in sectors with high added value, such as information technology or engineering. According to Art. 33 of the Law on Foreigners in the Republic of Bulgaria, in order to obtain an EU Blue Card, applicants must have an employment contract or a job offer from a Bulgarian employer, as well as evidence of high professional qualification, which usually includes diplomas and work experience.
The second option is related to the conduct of freelance activity. According to Art. 24, para. 1, item 15 of the Law on Foreigners in the Republic of Bulgaria, digital nomads can obtain a residence permit if they wish to carry out freelance activities after authorization from the authorities of the Ministry of Labor and Social Policy. This permit is issued in accordance with the procedure of the Law on Labour Migration and Labour Mobility and is suitable for persons who work as freelancers or self-employed persons without having a specific employer in Bulgaria. To obtain such a permit, nomads must provide evidence of their activity and financial stability, as well as prove that they possess the necessary skills and qualifications for the work performed.
The third option is to obtain Single residence and work permit, which is regulated in Art. 24i of the Law on Foreigners in the Republic of Bulgaria. This permit is suitable for foreigners who wish to work and reside in Bulgaria for a certain period. The single permit combines the right of residence with the right to work and is issued to persons who have a job offer from a Bulgarian employer. The procedure includes an assessment by the Ministry of Labor and Social Policy on the need to appoint a foreigner to the relevant position. This permit is suitable for digital nomads who plan to work on an employment contract in Bulgaria or for international companies with representative offices in the country.
Elan Consulting can provide full support to digital nomads in relation to applying for each of these residence permits. The company offers consultations on legal status issues, preparation of necessary documents, assistance in communication with competent authorities, as well as subsequent legal services to ensure compliance with Bulgarian legislation.
Tourism services and ecotourism in Bulgaria are an excellent opportunity for entrepreneurs who want to take advantage of the country's rich natural and cultural heritage. Bulgaria is a country with a variety of natural attractions, which include mountains, rivers, lakes and national parks, attracting tourists from all over the world. Ecotourism, which promotes sustainable development and the conservation of natural resources, is becoming increasingly popular, offering unique experiences and contributing to local economies.
The Law on Tourism sets clear rules and standards for the development of the tourism sector, creating a stable environment for business. This is an important advantage, as it provides legal certainty and protection of the interests of all market participants. In addition, Bulgaria as a member of the European Union provides access to various funding programs that support the development of sustainable and innovative tourism projects.
Tourism services in Bulgaria offer opportunities to create new and innovative products that can meet the growing demand for unique and sustainable tourism experiences. Ecotourism, in particular, is a segment that provides opportunities for the development of wine tourism, cultural routes and adventure tourism, which are particularly attractive to international and domestic tourists.
The taxation of tourist services and ecotourism in Bulgaria is mainly regulated by the Value Added Tax Act (VAT) and the Corporate Income Tax Act (CPA). According to Art. 66, para. 2 of the ZVAT, the basic VAT rate in Bulgaria is 20%, but for some tourist services, such as accommodation in hotels, motels, family hotels and other objects for short-term stay, a reduced rate of 9% applies. This reduction is intended to encourage tourism and make services more accessible to consumers.
Revenues from tourist services are subject to corporate tax in the amount of 10%, according to Art. 20 of the Corporate Income Tax Act. This is one of the lowest tax rates in the European Union and provides a significant competitive advantage for businesses in the tourism sector. Additionally, expenses related to marketing, advertising, staff training and infrastructure development can be recognized as tax-recognized expenses, which reduces the tax base and optimizes the tax liabilities of companies.
Additional tourist services in Bulgaria are defined in the additional provisions of the Tourism Act, specifically in §1 of the Supplementary Provisions of the Act. These services include a wide range of activities that enrich the basic tourist experience and provide tourists with additional opportunities for recreation, entertainment and getting to know the cultural and natural heritage of Bulgaria.
According to §1 of the Supplementary Provisions of the Tourism Act, additional tourist services include, but are not limited to:
These additional services play a key role in the development of the tourism sector, contributing to the creation of diverse and attractive tourism products. They allow tour operators to offer unique experiences that meet the different interests and preferences of tourists.
Tour operator activity in Bulgaria is regulated by the Tourism Act and requires strict compliance with certain rules and standards. According to Art. 60 of the Tourism Act, in order to carry out tour operator activities, persons must be registered in the National Tourist Register. A mandatory condition for registration is the availability of insurance “Liability of the tour operator”, which covers the responsibility of the tour operator to customers in case of non-performance of the agreed services.
Tour operators are obliged to ensure quality and safe provision of services, complying with the requirements of the law and providing complete and accurate information to their customers. This includes providing information on routes, programs, accommodation, food, transport and other important aspects of organized tourist trips. In addition, tour operators must have licensed tour guides and ensure the necessary level of safety and comfort for tourists during trips.
Elan Consulting can provide legal advice and assistance to tour operators regarding registration, compliance with legal requirements and keeping the necessary documentation. The company can also offer assistance in the conclusion of insurance “Liability of the tour operator” and ensuring compliance with the requirements of safety and quality of services.
Registration of tourism business in Bulgaria is mandatory and is regulated in the Law on Tourism. According to Art. 58 of the Tourism Act, every person who provides tourist services is obliged to register in the National Tourist Register. Registration is carried out by submitting an application to the Ministry of Tourism, and a number of documents are attached to it, proving the compliance of objects and services with the requirements of the law. In the case of the provision of hotel services, it is necessary that the establishments meet certain standards of comfort and safety defined in the Ordinance No. 2 of 2012 on the categorization of accommodation and catering and entertainment establishments.
Educational initiatives and courses are an excellent way to develop professional skills and qualifications that can improve competitiveness in the labour market. In Bulgaria there is a well-developed system of professional and academic educational programs that are accessible to both young people and already working professionals. Moreover, these courses and initiatives are often funded under various European and national programmes, making them accessible to a wide range of people.
There are numerous opportunities for qualifications and retraining that can help people adapt to the rapidly changing job market. Bulgaria offers courses in information technology, foreign languages, project management and many others, which are in high demand both in the local and international markets. Participation in such courses not only increases the chances of finding a better job, but also opens doors for career development and promotion.
Bulgaria also offers flexible forms of training, including distance and evening courses, allowing participants to combine training with work duties. This is especially valuable for people who want to develop but cannot afford to interrupt work or other commitments. Thus, educational initiatives become available to everyone, regardless of their location or schedule.
In Bulgaria, private educational institutions and the provision of private lessons are regulated by several basic legal acts, including the Law on Preschool and School Education, the Law on Vocational Education and Training, and the Regulations for the Implementation of the Law on Public Education. These documents contain detailed provisions on licensing, requirements for educational institutions and the rights and obligations of persons providing educational services.
In order to open a private educational institution in Bulgaria, it is necessary to obtain a license from the Ministry of Education and Science (MES). The licensing procedure involves the submission of documents that prove the compliance of the educational institution with the requirements of the law. Among these documents are a draft curriculum, information on the qualifications of teachers and documents that certify the compliance of the material base with the established norms.
According to the Regulations for the Implementation of the Law on Public Education (Art. 17), the documents that must be submitted include an application to the Minister of Education and Science, a copy of the deed of ownership or the contract for renting the premises, a draft contract for training, as well as a plan for providing medical care to students. In addition, fire safety and sanitary permit documents must be submitted, which ensure the safety and health of students.
The provision of private lessons in Bulgaria is an activity that can be carried out by individuals who have the necessary qualifications, but does not require a special license from the state authorities if it is carried out on an individual basis. However, these lessons must meet certain standards and requirements in order to be recognized as legitimate. For example, teachers must have the appropriate qualifications for the subject they teach and have the legal capacity to carry out pedagogical activity.
In cases where private lessons are organized as a business involving more than one teacher or within a training center, it is necessary to comply with the requirements for registration and licensing of the educational institution, according to the Law on Public Education and related by-laws. These provisions ensure that the educational services provided are of the required quality and meet the state educational standards.
Educational initiatives and courses in Bulgaria may be taxed depending on their nature and the type of services provided. According to the Corporate Income Tax Act, income from educational services that are not exempt from taxation is subject to corporate tax at the rate of 10%. In addition, if the educational courses are conducted by an individual as a freelancer, the income may be subject to taxation under the Personal Income Tax Act.
Additionally, according to the Value Added Tax (VAT) Act, educational services can be exempt from VAT if they meet certain conditions, such as being part of curricula approved by the Ministry of Education and Science. This means that if the educational initiative meets the criteria for an exempt supply within the meaning of the VAT, the services provided will not be subject to VAT, which reduces the costs for the participants.
Organizers of educational initiatives and courses in Bulgaria must register as legal entities if they want to provide such services legally. According to the Law on Public Education, educational institutions that offer courses and trainings must be registered with the Ministry of Education and Science. Registration involves submitting documents for licensing the programs offered and establishing compliance with state educational requirements.
The accounting of educational initiatives is also strictly regulated and subject to verification by the competent authorities. This includes keeping records of income and expenses, as well as compliance with all tax reporting requirements. In cases where VAT-exempt educational services are provided, proper documentation and accounting of these services must be ensured in order to avoid tax evasion.
The legislative framework for educational initiatives and courses in Bulgaria is well developed and covers many aspects of the education system. A fundamental law in this area is the Law on Public Education, which regulates general education and stipulates the requirements for educational institutions and programs. In addition, the Law on Preschool and School Education regulates the conditions for the provision of educational services to children and schoolchildren.
The Higher Education Law also plays an important role when it comes to offering courses and programs at the university level. This law regulates the requirements for universities and other higher education institutions, including the licensing of new programs and the recognition of foreign diplomas.
Finally, the Vocational Education and Training Act regulates courses and programs aimed at vocational qualification and retraining. This law establishes the criteria that professional courses must meet and the procedures for their licensing and control. Compliance with all these laws is key to the successful and legal provision of educational initiatives and courses in Bulgaria.
Financial technologies (FinTech) represent one of the most dynamically developing sectors both globally and in Bulgaria. Choosing to invest or start a business in the field of FinTech offers numerous advantages. Firstly, Bulgaria has a favorable business environment, which is characterized by low operating costs and a high level of qualified IT specialists. These factors greatly facilitate the development of innovative technologies and solutions in the field of finance.
Secondly, the legal and regulatory framework in Bulgaria is in line with European standards, which means that local FinTech companies have access to the single market of the European Union. This opens the doors to scale and expand businesses beyond national borders, providing opportunities for global growth.
Third, the existence of numerous programs to support innovation and technological entrepreneurship in Bulgaria, both state and private, creates favorable conditions for the start-up and development of FinTech companies. These programs provide funding, mentorship and access to networks of investors and partners, which is essential for successful business development.
Financial technologies, as well as other businesses, are subject to taxation under Bulgarian law. The main tax that FinTech companies pay is the corporate tax that is levied on the company's profits. The tax rate is 10%, which is one of the lowest rates in the European Union, which makes Bulgaria an attractive destination for financial innovation.
In addition to corporate tax, FinTech companies may be required to register under the Value Added Tax Act (VAT) if their turnover exceeds the established threshold. The VAT rate is 20%, except in the case of specific financial services which may be exempt from VAT pursuant to Article 47 of the VAT Act.
The registration of FinTech companies in Bulgaria is carried out according to the standard procedure for registration of commercial companies. According to the Law on Credit Institutions and the Law on Payment Services and Payment Systems, FinTech companies that offer payment services or other financial services must obtain a license from the Bulgarian National Bank (BNB).
The accounting of FinTech companies must be organized in accordance with the Law on Accounting, while taking into account the specific requirements for financial institutions. It is important to ensure compliance with all prudential requirements imposed by regulators, as well as to ensure transparency and accuracy of financial statements.
The legal framework for the creation and functioning of FinTech companies in Bulgaria is well developed and in line with European requirements. The Credit Institutions Act and the Payment Services and Payment Systems Act regulate the activities of financial institutions and payment services, providing clear licensing and supervision rules. Companies wishing to provide financial services must obtain the appropriate license from the BNB, and the process includes a detailed study of the company's activity, structure and financial capabilities.
One of the main challenges facing FinTech companies in Bulgaria is the need to adapt to the rapidly changing regulatory environment. Due to the high dynamics of the sector, regulators often introduce new requirements that companies must comply with in order to remain competitive. At the same time, these challenges are accompanied by significant opportunities, especially with regard to the integration of new technologies, such as blockchain and artificial intelligence, into the provision of financial services.
In Bulgaria, there are numerous public and private programs that provide financial and mentoring support to FinTech companies. The Fund of Funds programs, operational programs of the European Union, as well as private initiatives such as accelerators and incubators, are aimed at supporting innovative companies. To take advantage of these programs, it is necessary to carefully monitor their requirements and prepare the necessary documentation, such as a business plan, financial forecasts and a growth strategy.
With the support of Elan Consulting, you can navigate the complex process of licensing, tax planning and management of a FinTech company in Bulgaria, making the most of the available opportunities for growth and development.
