Hello. I have a question about Bulgaria, that's why I'm posting here, I'm not Bulgarian and don't speak Bulgarian at all.
When looking about setting up a company for trading Bitcoin I found that Bulgaria could be interesting, with its low taxation. In my European country, what I want to do doesn't work, as there are so many things to pay there is no money left in the end.
So let me describe the plan, and give me your opinion if it would be feasible in Bulgaria.
It's all about arbitrage using a DEX (decentralized exchange). On a DEX you can sell crypto at a premium, and get paid using SEPA wires to a bank account. You can buy crypto without the premium using a centralized exchange, or using the DEX too.
So the company would receive money on its bank account for crypto sales, and send money to either an exchange or individual people, to buy crypto.
Do you think it's possible to set up a company to do that in Bulgaria ? There would be no KYC, except the customers use their bank accounts so their identity isn't secret.
Is it possible for a company to sell crypto without VAT, I think it's considered a currency so should be possible ?
What is very important is that the real earnings are taxed. Let's say the premium without fees etc. is 5%, and the company sells 200 000€ a year, that would mean it bought that crypto for 190 476€ and earned 9524€. 9524 € need to be taxed, not 200 000€.
Tell me what you think and feel free to use the strategy, I already do it with my personal bank accounts but it's not sustainable.
You can answer in Bulgarian, I'll use Google Translate.
thanks
Short answer yes.
key points:
- The corporate income tax is 10%. It is a flat tax.
- The tax rate on dividends is 5%.
- The company has to be VAT registered.
- Crypto is VAT free
- The company's bank account has to be abroad, Bulgarian banks are not crypto friendly
About the KYC, I'm not sure
Аз успявам вече трета година. Сложи вентилатор на прозореца да изкарва жегата навън и ще е наред. Или пък ги сложи в палатка с въздуховод, който да вади въздуха навън. Това последното е най-добрия вариант.