Malta or Bulgaria?

Discussion in 'Offshore Company formation' started by Cabbage500, Aug 20, 2018.

  1. c4labs

    c4labs Active Member

    I am not sure I can disclose anything here bor&%#, but I can give you more info in PM.
  2. IAmNotTheTaxman

    IAmNotTheTaxman Active Member

    I'm sure it was quite expensive. I know we currently pay hefty accounting fees and retainer fees for our lawyer / secretary service. Like I said though, that was before my time. Best to do it right the first time.
  3. Suzy Emerald

    Suzy Emerald Building Trust Entrepreneur

    Hello, I assume you did set up a bank account in BG. How easy would it be to set up a bank account in another EU country with a BG company?
  4. Suzy Emerald

    Suzy Emerald Building Trust Entrepreneur

    Could profits and therefor taxes in BG be lowered when invoicing from another own company e.g. a
    BZ IBC to the BG company for some kind of services?
  5. sp00k

    sp00k Member

    Got Maltese company for 1.5 years. It depends on your corp income. I would say with 5-6k Eur a month or higher it is hands down the cheapest solution. If you need to extract money of course.
    Got around 200invoices annually and it cost me below 3k for all the running reports and audit.
    Considering to move to Estonia where you can reinvest with 0 corp tax.
    Might be selling Maltese company with Maltese corp bank account.
  6. superman

    superman Building Trust Entrepreneur

    ...or you will fight against the Malta tax office to on end make a deal with 15% tax and huge invoice for a local lawyer and much lost time. Lesson learned never pay upfront 35% tax and need to ask later to got 30% back.

    Bulgaria is great in many ways.
    This with translated Invoices never heard, never seen. Same with BGN currency.

    There is a big difference on the Bulgarian Providers regarding service. Important is to know your preferences to go with the right one. For the 100% proper stuff you have serious law agencies who will fit you and for the opposide there are great suppliers too.
  7. 1nomad

    1nomad Active Member

    as a Maltese non-dom you can run any offshore company without taxes so why do you bother with the Maltese company?
  8. RnK

    RnK New Member

    I have a company in BG, setup and maintained by a well known accountant office in Sofia. Everything goes fine, except accounting fees are quite high (€250 / month up to 100 invoices) compared to other EU countries (at least where I live, Western Europe). I deliver my invoices in English. One problem no-one is mentioning though are BG banks, they charge quite huge fees for every transaction made (incoming / outgoing, for example €700 incoming= €7 fee, €495 cash withdrawing (which is the maximum) costs €16), and besides this a monthly fixed fee, something which is not the issue with my other company in Western Europe where we have EURO.

    So for me I can't really recommend Bulgaria, if I could do it again I would surely check other countries first with Euro currency, as BG also have limited PayPal accounts (you can't withdraw to bank etc) which isn't positive either.
    Suzy Emerald likes this.
  9. blockchain4ever

    blockchain4ever Active Member

    This is quite surprising given that BG has the 2nd lowest income level in EU, only slightly above Romania.

    Are you sure your accountant is giving you competitive rates?
  10. negon

    negon hannibal the cannibal Mentor Group Business Angel Commercial Service

    IS €250 / month much for this service ? I think it's cheap or not?
  11. RnK

    RnK New Member

    No, I'm not sure, but for setup I want to be sure everything was perfect, as you will not understand one single word of Bulgarian (totally different language, looks a bit like Russian), and my accountant provided a notary setup in both English and Bulgarian. May switch later to a cheaper one as I first want to see how everything goes.

    Don't think so, I'm in West Europe where wages are around 2K€ a month, and here I pay €125 / month for lot's of more accountant activities, and €100 / year for banking fees incl. multiple creditcards. And like blockchain4ever mentioned, people don't earn a lot in BG, so accountant rates should be cheaper. Biggest issue is in my opinion the banking system, even if you pay a 2€ local mobile phone bill you have to pay €0,50 fees - and it's not about the 50 cents, but if you have to pay a bank a few thousand € a year for fees you will think different. Hope BG can change to EUR soon, so these ridiculous banking fees will change hopefully :)
  12. negon

    negon hannibal the cannibal Mentor Group Business Angel Commercial Service

    is this with a certified accountant ?
  13. RnK

    RnK New Member

    Yes, normal rates here , it even includes yearly report etc. I will not disclose my country where I live (I also run a company here), but with a tax rate of 50-60% you will still gladly pay €250 a month for a Bulgarian accountant. Again, my biggest issue are banking fees which are very high - another sample, $50 / month for a just having a USD account is outrageous IMO.

    Best thing about BG is it's tax rate, which is just 10% :)
  14. Martin Everson

    Martin Everson Offshore Consultant Business Angel

    I didn't want to say it but glad someone else did but Romania is a poor country. Are these expat/foreigner prices or do locals who speak the local linguafranca get charged a lower rate?

    Something sounds off with the pricing.
  15. 1nomad

    1nomad Active Member

    do you have to have a BG bank account? I mean you can use any other EU bank account
  16. blockchain4ever

    blockchain4ever Active Member

    Exactly what I was going to say. A bank account in any other EU country doesn't create a "permanent establishment" in OECD lingo. You should feel free to bank anywhere.

    As far as I know, there's a requirement in BG to have SOME bank account in BG, but that's for tax purposes I guess. Leave it at that and do your banking elsewhere.
  17. Jav

    Jav Active Member

    Hi Guys,
    A little late but I know a lot about Bulgaria. The accounting fees you are quoting are really high. Locals pay much less. My example is not VAT registered company so no monthly accounting, about 3-5 invoices a month and yearly turnover bellow 25K - the accountancy cost me 300Euro per year. Friend of myne has VAT company and 10-20 invoices per month with turnover above 100k and pays 150 euro per month and these are real prices from 2018.
  18. LisaSimpson

    LisaSimpson Building Trust Entrepreneur

    Do you think that some bulgarian accounting company increases their price only for foreigners?
  19. LisaSimpson

    LisaSimpson Building Trust Entrepreneur

    Here some accounting fees from ZARA consult from Sofia Bulgaria:
    Jav you pay 300 euros / year, here they offer this service for 250 euros per month... This seems like a big SCAM to me.

    extremedox101 likes this.
  20. RnK

    RnK New Member

    I'm using Zara, the fees LisaSimpson is stating are correct. Setup and service is outstanding (esp. setup, took less then 1 hour in Sofia, everything perfectly arranged in dual language with a notary coming to their office), but monthly fees are really really way too high, esp with the volume I do (sometimes no monthly invoices at all).

    If someone can advise a good reputable company for a 'normal' price please mention it here or pm me, thanks so much!
    LisaSimpson likes this.