Too good to NOT be true! A branch in Greece with a registered office in Bulgaria.

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Branch in Greece

This partnership scheme has been increasingly applied in recent years. Thousands of enterprises, active in the secondary sector, wholesale trade and import-export sectors, have managed to successfully develop in the European framework of Greece and Bulgaria.

Despite what is said from time to time, it is a perfectly legal corporate scheme, as long as it is not aimed at tax evasion and the international requirements are met. European tax and insurance legislation protects and favours intra-Community entrepreneurship.

The success of this scheme lies in the actual increase in the overall profitability of the company. The experience in the combined application of the tax and insurance legislation of Europe, Greece and Bulgaria allows for the best tax planning. Thus, with proper management, the taxable amount in Greece is reduced, reversing the profit-contribution ratio compared to the current Greek data.

In this system, for the parent company in Bulgaria the following applies:

  • 10% Tax on profits
  • 5% Tax on the distribution of dividends
  • 20% VAT on transactions within Bulgaria
  • 0% VAT on transactions within the European Union
  • 60€/month Insurance contributions of the company's manager
  • Current Account (without Capital Controls)

For the income of the Greek subsidiary (branch), as it is foreseen to result from the individualized tax planning, the following apply:

  • 29% Tax on profits
  • 5% (and not 15% applicable in Greece) Tax on Dividend Distribution
  • 24% VAT on transactions within Greece
  • 0% VAT on transactions within the European Union
  • From 169€/month (depending on the profits of the Branch) Insurance contributions of the company's Manager
  • Current Account (Restricted due to Capital Controls)

For the successful implementation of such a project, the guidance of a specialized accounting firm is essential. The "know-how" in tax planning and combined Greek-Bulgarian taxation is a prerequisite for business development.

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