Bulgaria Incentives Investments & Visas
The information below can be found :- http://www.worldwide-tax.com/bulgaria/ * Bulgaria attempts to encourage investments from foreign residents. -Political and economic stability. -Membership of important organizations such as NATO since 2002 and Bulgaria is expected to join the EU in 2007. -Labor costs that are considerably lower than European standard costs. The average gross monthly wage for September 2005 was Euro 167. -An highly proficient work force in all that is connected with hi-tech. -47 agreements with other countries to promote and protect foreign investment. -Among other companies that have invested in Bulgaria, are Microsoft, Siemens, IBM and Carlsberg. Restrictions on Foreign Ownership * As a general rule, there is no discrimination in Bulgaria between overseas investors and local investors. Nevertheless, there are restrictions in certain areas. * Real estate may be purchased by an individual who is a foreign resident only on setting up a company in Bulgaria. * Special permission must be obtained from the Council of Ministers in Bulgaria on the purchase of real estate in border areas or in areas that are defined as being of high security priority. * Overseas investors may obtain a concession in regard to projects that are carried out on municipally owned property such as water supply, drainage, road paving, etc. The concession is usually for a period of 15 years, and in any case, not for more than 25 years. INCENTIVES FOR OVERSEAS INVESTORS * Companies that are connected with investments in production, subject to the terms specified in law, are exempt from corporation tax. For this purpose, the companies must meet the following requirements: - All the property of the company making the investment must be located in areas in which the unemployment rate exceeded the national average in the preceding year by 50%. - At least 80% of the employees must be residents of the municipal area described in the previous paragraph. - In the year in which the tax incentives are payable to the company, the company must have no debts in regard to its employees' social security. - The tax incentives for companies are contingent on the amount of tax saved being re-invested in the purchase of equipment or payment of wages. - Exemption from corporation tax is for a period of 5 years, even during the years that the municipality within whose border the company is located is excluded from the list of municipalities recognized as centers of unemployment. Free Trade Zones (FTZ) * Bulgaria has 6 free trade zones. All the zones are located at strategic transport hubs to facilitate speedy transportation to international trade routes to neighboring countries. * Free trade zones are located at the ports of Vidin and Ruse. Another FTZ is located on the Bulgarian - Serbian border and one on the Turkish - Bulgarian border and another in the Plovdiv region. Plovdic is the second largest city in Bulgaria and has an independent airport. The sixth FTZ is situated at Burgas beside the largest Bulgarian Black Sea port. * Activities in a FTZ include, among others, convenient currency exchange, the possibility of transferring profits overseas without restrictions, and an organizational structure that negates the need for the investor having to conduct negotiations through the local authority Bulgaria Double Taxation Prevention Treaties Bulgaria is a signatory to a Treaty for the Prevention of Double Taxation with many countries all over the world. Draft agreements with additional countries are at the discussion stages. A Double Taxation Prevention Treaty, in principle, enables offsetting tax paid in one of 2 countries against the tax payable in the other, in this way preventing double taxation. Another important factor is the grant of an exemption or tax at a reduced rate on certain receipts such as interest, royalties, dividends, capital gains and others that are connected with a transaction carried out between parties associated with the Double Taxation Prevention Treaty. It is of the utmost importance to stress that the Double Taxation Prevention Treaty takes precedence over the Bulgarian Income Tax Ordinance. In other words, if certain income is taxable under the Bulgarian Income Tax Ordinance but there is an exemption (reduced tax) under any Taxation Treaty, the income is taxed, if at all, but only according to the provisions of the Taxation Treaty. Double Taxation Agreements: List of Countries Albania India Portugal Armenia Indonesia Romania Austria Ireland Russia Belarus Israel Spain Belgium Italy Singapore Canada Japan Slovak Republic China Kazakhstan South Korea Croatia Lebanon Sweden Cyprus Luxembourg Switzerland Czech R. Macedonia Syria Denmark Malta Thailand Finland Morocco Turkey France Moldova Ukraine Georgia The Netherlands UK Germany Norway Vietnam Greece North Korea Yugoslavia Hungary Poland Zimbabwe BULGARIA VISAS AND WORK PERMITS * Overseas residents must present valid documents, a passport and entry visa, on entering Bulgaria. * Residents of the EU entering Bulgaria for a stay of less than 30 days do not need a visa. There are bi-lateral arrangements with other countries. Visas If you wish to stay in Bulgaria, you must obtain a visa. The main types of visa are: * An airport visa - enables a change of flight at the airport without entry to Bulgaria. * A transit visa - this obligates the holder of the visa to leave Bulgaria within 24 hours of the time of entry. * A short term visa - permits entry on one or more occasions for a maximum period of 90 days. The visa is valid for 3 months from the date of issue. * A long term visa - valid for a number of entries into Bulgaria for up to 90 days. The visa is valid for a maximum period of 12 months. Permanent Resident's Permit * The spouse and children of Bulgarian citizens or of foreigners with a permanent resident's visa, are eligible for this permit. * A permanent resident's visa is issued to persons who have lived permanently in Bulgaria for more than 10 years, or more than six years in the case of anyone having business interests in Bulgaria. Work Permits * Foreigners with a permanent resident's permit and refugees who receive sanctuary in Bulgaria are entitled, like other Bulgarian citizens, to work in Bulgaria. * Temporary work permits are issued to foreigners and bear the name of the foreign worker, the name of the employee and the period for which the permit is valid. * A work permit is not granted if the work can be undertaken by a Bulgarian citizen. * An employer cannot hire foreign workers in excess of 10% of his total work force. * Foreigners who work in Bulgaria as self employed individuals or as partners in a business must take out the relevant insurance cover. The insurance premium is between 29% - 32% of income. |
