In today’s business environment, more investors are seeking ways to optimize their costs, legally reduce taxes, and expand into new markets. Bulgaria has become an increasingly popular choice among European entrepreneurs, offering attractive tax benefits and excellent logistical advantages. This article presents a real-world example of the German company “Baltic Horizons GmbH” which, with the support of Bulgaria NET, successfully established its subsidiary in the Bulgarian city of Burgas, achieving significant annual savings.
Why Bulgaria?
In the last decade, Bulgaria has positioned itself as an ideal destination for foreign investors. Its tax policy is simple and transparent, with tax rates among the lowest in the European Union. The main reasons investors choose Bulgaria include:
- Corporate tax of only 10%
- Low social security contributions
- Favorable dividend distribution conditions (5%)
- Simple and fast company formation procedure
- Low administration and operating costs
- Strategic location – access to the Black Sea, Middle East, Turkey, and EU
Baltic Horizons’ Decision
“Baltic Horizons GmbH” from Hamburg specializes in developing luxury tourist facilities and managing resorts across Europe. In 2024, the company’s management decided to expand operations by opening a branch in Bulgaria, specifically in Burgas – a city known for its significant tourism potential and developed infrastructure.
The main objectives were:
- Open an operational office in Burgas
- Take advantage of low taxes and business incentives
- Initiate development of a luxury complex on the Black Sea coast
- Reduce operational costs compared to Germany
Partnership with Bulgaria NET
For this venture, they chose the team at Bulgaria NET, specialists in company formation and management in Bulgaria. Their years of experience with clients from the region and EU was crucial for the efficient implementation of the project.
Bulgaria NET provided the following services:
- Legal consultation and tax opportunity assessment
- Documentation preparation and submission
- Registration of “Baltic Horizons Bulgaria OOD” within 7 working days
- Opening a business account with a Bulgarian bank
- VAT and tax registration
- Introduction to the local business environment and partner networking
Savings through Tax Optimization
Thanks to properly implemented tax strategy and expert process management, “Baltic Horizons Bulgaria” achieved savings of over 120,000 euros in its first year of operations, solely in taxes, contributions, and administrative costs. This amount represents an average result for a medium-sized company operating in the tourism sector with annual turnover exceeding 1.5 million euros.
Table: Cost Comparison Analysis (Germany vs. Bulgaria)
| Item | Germany (%) | Bulgaria (%) | Difference |
|---|---|---|---|
| Corporate Tax | 25-30 | 10 | -15-20% |
| Dividend Tax | 25 | 5 | -20% |
| Payroll Contributions (employer) | ~21 | ~18 | -3% |
| Accounting and Administration Costs | High | Low | up to -50% |
Based on this difference, the company managed to significantly reduce its operational costs and increase the competitiveness of its services in the region.
Client Testimonial
“We couldn’t believe the process would go so quickly and smoothly. Bulgaria NET was with us from the first consultation until the day we signed our first contract in Bulgaria. Thanks to their expert assistance, we managed to start operations, hire local workers, and enter a market we hadn’t covered before. We were particularly surprised by how quickly we saw results through tax and operational savings.”
— Martin Kruger, CEO of Baltic Horizons GmbH
Long-term Plans and Development
“Baltic Horizons Bulgaria” is currently developing a luxury tourist complex near Burgas that will include:
- 5-star hotel
- Wellness & spa center
- Private villas for rent
- Restaurants and commercial facilities
The plan includes hiring over 50 local workers in the next two years, as well as involving local suppliers and companies in all phases of construction and management.
Additionally, in cooperation with Bulgaria NET, they have initiated the process of applying for EU funds available to tourism investors, which can further reduce costs and accelerate development.
Visual Presentation of Savings
Infographic:
- 🏦 Corporate Tax Savings: -20% → +50,000 EUR
- 📉 Dividend Savings: -20% → +30,000 EUR
- 🧾 Administration and Accounting Savings: -50% → +40,000 EUR
Total Annual Savings: ≈ 120,000 EUR
Conclusion
The example of “Baltic Horizons” clearly demonstrates that entering the Bulgarian market is worthwhile, especially for German and other EU investors seeking:
- Lower taxes and contributions
- Access to EU and Middle East markets
- Stable and predictable business environment
With the help of Bulgaria NET, the entire process of establishment and tax planning can be completed in just a few days, without complications, hidden costs, or ambiguities.
For anyone considering business expansion or optimization — Bulgaria is a smart choice, and Bulgaria NET is a proven partner.
Daniel Malbašić je poslovni konsultant sa bogatim međunarodnim iskustvom u oblasti osnivanja firmi, strateškog savetovanja i posredovanja u kupoprodaji nekretnina u Bugarskoj. Specijalizovan je za rad sa stranim investitorima i preduzetnicima kojima pruža sveobuhvatnu podršku pri ulasku na bugarsko tržište.
Kroz platformu bugarska.net, Daniel svakodnevno pomaže pojedincima i firmama da uspešno započnu svoj posao u Bugarskoj – brzo, legalno i bez stresa.
