Starting a business in Bulgaria

Bulgaria is a small country with a large number of resort towns. The annually growing flow of tourists, low taxes and economic stability are good factors for starting a business in the republic.

Business immigration to Bulgaria

Starting your own business is a reliable way to stay in the country for a long time. The Bulgarian government encourages foreign entrepreneurs: you can open a company without even being present on the territory of the state.

A foreigner to do business will need to issue an appropriate visa and residence permit. Successful development of the business will provide an opportunity to obtain Bulgarian citizenship, but not earlier than 5 years after the opening of the company.

A significant plus for Russian entrepreneurs is the close mentality of the Bulgarians and the opportunity to hire employees with a good education among the local population, who will not claim high wages. The level of knowledge in universities is high here, and it is not easy to get a job in the republic.

Business immigration: what is it

Business immigration is an opportunity to relocate your business, open a new one or buy a ready-made company in a foreign country. Most European countries are ready to provide a residence permit, and later citizenship to entrepreneurs from other countries.

Required conditions for this:

• The company must pay taxes on time;
• Opening vacancies for local residents.

Russian business immigrants in Europe have certain advantages:

• Loans on favorable terms;
• Tax incentives;
• The opportunity to obtain citizenship in the country where the company is open.

Business visa to Bulgaria

A business visa is required for persons who have opened a new company or are planning to develop an existing business.

You can apply for a single, double or multiple-entry visa C - it allows you to stay in the republic for 90 days out of 180. You will not be able to apply for a residence permit by choosing this way of entering Bulgaria.

It is preferable for a foreign entrepreneur to obtain a national visa of category D: the applicant will have the opportunity to stay in the country for six months and during this time to obtain a residence permit.

Types of business in Bulgaria

One tenth of the largest companies in South-Eastern Europe are located in the country, they work mainly in the energy and heavy industries. Doing big business in the republic is a profitable occupation; only very wealthy people can organize a new company.

Russians in Bulgaria usually run small or medium-sized businesses. The competition is quite high, but with a successful organization, the company will bring a stable income.

There are three options for business immigration:

1. Open a representative office of a Russian company in the republic;
2. Organize a new business or buy a ready-made one;
3. Become an investor.

Russian citizens usually choose to organize a business in Bulgaria: the option makes it possible to obtain citizenship of the country over time (when opening a representative office it is difficult) and does not require large investments.

The easiest way is to become an investor, but it is also the most expensive one. It will be necessary to invest 512 thousand euros in government bonds of the republic.

Conditions of immigration to Bulgaria for entrepreneurs

Opening a company only formally, as is permissible in some other countries, will not work in Bulgaria. The business must be profitable, taxes must be paid on time. The entrepreneur himself will have to live in the republic for at least 184 days out of 365. Obtaining a business visa obliges the applicant to organize at least 10 jobs for Bulgarian citizens.

An exception is the opening of a representative office, which does not require hiring a large number of employees and making a profit on the territory of the country. But getting permanent residence in this way is also more difficult: you will have to wait at least 5 years and make sure that the time of stay in the state is at least 6 months a year.

Choosing a visa, conditions for obtaining

Those planning to do business in Bulgaria will need to issue a long-term (for a year) visa D... This can only be done in person at the consulate of the republic.

List of required documents:

• Passport, which must expire 3 or more months after returning to Russia;
• Application form in Russian;
• Photo 3.5x4.5 cm;
• Confirmation of financial well-being (information from the bank);
• Medical insurance valid in the EU.

The consulate has the right to require other additional documents. The term for consideration of securities - 4-35 days, if necessary, the applicant can be summoned for an interview.

Residence permit, permanent residence, citizenship: conditions for obtaining

Foreign entrepreneurs who have opened a representative office of their company in Bulgaria are given a temporary residence permit for 5 years with an annual extension. After this period, you can apply for permanent residence status. The opportunity to obtain citizenship of the republic will appear only after 10 years through naturalization.

A significant drawback for the owners of a foreign representative office is that they are prohibited from selling goods or services, it is only possible to attract customers or provide information support.

Russians who have opened a new company or bought a ready-made business can apply for permanent residence after 6 months. Owners of a profitable business, who regularly deduct taxes and provide Bulgarians with jobs, can obtain citizenship of the country 5 years after the registration of the company.

Opening a new company, buying a ready-made business

The state encourages foreign entrepreneurs to organize a company or buy a ready-made one.

For such citizens, the following are provided:

• Tax incentives;
• Low cost of renting premises;
• Entering the European market;
• Buying land or real estate;
• The ability to purchase the necessary products in installments.

You can buy a ready-made business in Bulgaria at a relatively low price. The cost will depend on the company's annual revenue, the final amount may be affected by:

• Long-term lease of premises (business will be more expensive);
• The end of the rental period (in this case, the price will decrease).

The organization of a new company obliges the entrepreneur to give the business a unique name and open an account with the authorized capital, the minimum amount of which is 10 levs (approximately 5 euros). The company must have a legal address, registration is allowed to be made at the address of private property or rented premises.

The procedure for opening or buying a company takes on average 3 weeks.

Popular business options in Bulgaria for Russians

An entrepreneur from Russia, deciding on the target audience, can focus on compatriots or local citizens.

Russian-speaking emigrants who have recently moved to Bulgaria often fear being deceived by the indigenous people of the republic.

Therefore, citizens of the post-Soviet space can be offered:

• Consulting services;
• Assistance in paperwork, buying or selling real estate.

Another option for earning money on the needs of former compatriots:

• Organization of tourism or hotel business;
• Transfer services;
• Shops and cafes specially “for Russians”.

It is better to focus on local citizens if the entrepreneur has the opportunity to engage in a traditional business with a low cost to the consumer: hairdressing salons, shops, hotels. The fact is that the purchasing power in the country is low, and the Bulgarians are very conservative, it is difficult to interest them in new products.

The most common types of business for Russians:

• Russian-oriented shops;
• Car services;
• Construction and repair;
• Hotel business;
• Production of certain products that are rare in the republic: dumplings, pies, cottage cheese;
• Transfer;
• Public catering enterprises;
• Real estate agency.

If a beginner entrepreneur has little experience, or there are doubts about the possibility of organizing a profitable company, it is better to buy a ready-made business, the prices for it in Bulgaria are relatively low. The cost of a working cafe - 70 thousand €, small hotel - 600 thousand €.

The restaurant business, auto business (cargo transportation, car service) quickly pays off in Bulgaria - within about a year. Funds invested in the purchase of a hotel can only be returned in 8-10 years due to high competition.

Business income will depend mainly on the good location of the company and the right organization. On average, the monthly profit of a start-up entrepreneur is 2500-5500 €.

Business ideas with minimal investment

A small but stable source of income in Bulgaria can be provided by the following activities:

• Manufacture and sale of souvenirs to tourists;
• Guide services;
• Babysitting for children of tourists.

Examples of starting a business in Bulgaria by Russians

Enterprising compatriots find original ways to make money:

• A family of 7 organized a dumpling making workshop in one of the rooms of a previously purchased apartment. Relatives live in the rest of the rooms. Starting a business in your own home does not contradict the laws of the country;
• A man living in a resort town bought about 20 bicycles and set up a rental shop. The business turned out to be profitable: bicycles in Bulgaria are expensive, such a purchase is unprofitable for tourists.

Legal nuances

The new company will need to be registered. Before that, you will need to choose the form of ownership.

It is best to contact your local accountants for help in calculating the estimated taxes. Such services are inexpensive here.

Business registration

Company registration takes place in 5 stages:

1. Title reservation;
2. Organization of a constituent meeting of shareholders with the presence of a notary to certify the charter;
3. Depositing the amount of the authorized capital to the bank account;
4. Registration in the commercial register of the National Trade Agency;
5. Providing information to the tax office.

Two forms of business ownership are popular among Russian entrepreneurs:

• Limited Liability Company with a minimum authorized capital 1 euro - suitable for small businesses;
• Joint-stock company with authorized capital 25500 € - it is preferable to choose the owners of large companies.

Taxation

The tax policy in Bulgaria is one of the most lenient in Europe. Foreign entrepreneurs are supposed to pay the following taxes:

• At a profit - 10%;
• VAT - 20%;
• Income - 10%;
• For dividends - 5%.

Tax breaks of up to 100% are provided for foreigners doing business in rural areas or providing jobs for people with disabilities.

Tips for Bulgarian Business Immigrants

Immigrants who decide to open a company in Bulgaria will need 2 main tips:

• Do only what you have experience or good theoretical knowledge;
• Carefully understand the laws of the country.

Often Russian entrepreneurs fail because they chose the wrong niche or used the services of the local population at a price that was 5-10 times overpriced.

In early 2019, a Russian with extensive business experience opened a restaurant and a strip club in the republic at the same time. The catering enterprise turned out to be completely unprofitable only because the owner overpayed to staff and suppliers. The strip club brought a good profit thanks to the favorable location and the passion of Bulgarians for this type of leisure.

Opening a business in Bulgaria is realistic: over 300 Russian owners of successful companies in the country confirm this. Difficulties at the initial stage are inevitable in any state, but the owners of a profitable enterprise in the republic have access to the European sales market - and these are new, even more attractive prospects.