The regulations pertaining to foreigners are embodied into the key priorities of Bulgaria’s Foreign policies relating to integration into NATO and the EU targeted for 1st January 2007. In this light the most notable achievements are:
The adoption of International Accounting standards, already compulsory for financial institutions since 2003, will come into force for all other companies in 2005.
The opportunity to avoid double taxation for capitol gains and dividends earned in Bulgaria, providing the home country of the legal entity or person has a signed agreement for avoiding double taxation.
The gradual adoption of EU tax requirements and legislation procedures
That during the last 2 years the investment environment has been improved through the reductions in corporate taxation.
Another incentive is the stability of the national currency, the Leva, a key factor being its fixed rate against the Euro.
The positive results here could be reviewed in the context of the Bulgarian long term objective of EU membership and as the exchange rate is fixed against the Euro and the economy is open domestic inflation should vary at levels close to those in the EU zone.
National Insurance is another ‘’window of opportunity’’ allowing foreign nationals to avoid regular payments in their own country. This is achievable in cases where they are not employees on a labour contract, but are self-employed entities. The registration of a company and consequently senior position are required, something that is automatic for purchasers of land and houses, so long as regular stipulated payments are made to the local government department.
Changes are expected in the laws in regard to land purchase, which is currently a lengthy process, and requires further changes in some basic laws. As market needs are outlined and the incredible interest from abroad continues the basic steps leading to abolition of current property ownership regulations, namely the registration of a company, are in the process of approval, but are not expected to be passed by the government prior to 2007, when EU membership is achieved. This should result in a increase of investment by both individuals and companies into property ownership in Bulgaria leading to increasing prices and profit margins for those purchasing now.
