Only 400 Romanian companies go to new tax haven: neighbor Bulgaria

Lower taxes in Bulgaria convinced 400 company owners in Romania to register their firms in the neighboring country, according to Bulgarian authorities, quoted by Sofia News Agency. The VAT in Bulgaria is of 20 percent, 4 percentage points lower than in Romania, while the income tax is of 10 percent, compared to 16 percent in Romania. Bulgaria has the lowest taxes in the European Union.

However, few of the Romanian companies registered in Bulgaria have headquarters or employees in Bulgaria. Romanian media previously reported a large number of Romanian companies chose to incorporate business in Bulgaria due to the lower taxes. editor@romania-insider.com (photo source: Photoxpress.com)