In recent years, the rise of remote work and the digital economy has prompted many young entrepreneurs and startups to seek out ideal locations to establish their businesses or embark on their nomadic lifestyles. While popular destinations like Portugal have garnered attention for their favorable climates and vibrant cultures, Bulgaria quietly emerges as a hidden gem offering unparalleled advantages for ambitious individuals in the realms of entrepreneurship and digital nomadism.
Here are several compelling reasons why Bulgaria surpasses Portugal as the premier destination for these ventures:
Cost of Living and Business Expenses
Bulgaria boasts one of the lowest costs of living in Europe, making it an attractive option for young entrepreneurs and digital nomads looking to stretch their budgets without sacrificing quality of life. Accommodation, transportation, and daily expenses are significantly more affordable compared to many other European countries, including Portugal. Moreover, Bulgaria offers favorable tax rates for businesses, including a flat corporate tax rate of 10%, which is notably lower than Portugal’s rates.
Low Corporate Tax Rates
Bulgaria’s corporate tax rate of 10% stands as one of the lowest in Europe, significantly lower than Portugal’s corporate tax rate, which can range up to 21%. For startups and small businesses operating on tight budgets, the savings from lower corporate taxes can translate into increased profitability and reinvestment opportunities, allowing for accelerated growth and expansion.
Flat Tax System
Bulgaria operates on a simple and transparent flat tax system, wherein both personal and corporate income taxes are levied at a flat rate. This simplicity not only reduces administrative burdens for entrepreneurs and startups but also ensures predictability and stability in tax planning. In contrast, Portugal employs a progressive tax system, with varying tax rates based on income levels, potentially resulting in higher tax liabilities for individuals and businesses.
Tax Treaties and Double Taxation Avoidance
Bulgaria has a robust network of tax treaties with numerous countries worldwide, facilitating international business activities and providing certainty regarding tax liabilities for cross-border transactions. These treaties often include provisions for the avoidance of double taxation, ensuring that entrepreneurs and digital nomads are not subject to duplicate taxation on their income. This favorable tax treaty network enhances Bulgaria’s attractiveness as a global business hub.
Favorable Capital Gains Tax Treatment
Bulgaria offers favorable treatment of capital gains, with a flat tax rate of 10% on realized gains from the sale of assets, including shares and real estate. This advantageous tax treatment incentivizes investment and entrepreneurship, encouraging individuals to take risks and pursue innovative ventures. In Portugal, capital gains are subject to progressive tax rates, with higher rates applicable to larger gains, potentially reducing the returns on investment for entrepreneurs and investors.
Quality of Life and Cultural Diversity
While Bulgaria may not have the same level of international renown as Portugal, it offers a rich tapestry of history, culture, and natural beauty that appeals to young entrepreneurs and digital nomads seeking authentic experiences. From the stunning landscapes of the Rila Mountains to the vibrant arts scene in Sofia, Bulgaria offers a high quality of life at a fraction of the cost compared to more well-known European destinations. The country’s diverse cuisine, friendly locals, and vibrant nightlife further enhance its appeal as a destination for young professionals.
In conclusion, while Portugal undoubtedly offers many attractive features for young entrepreneurs and digital nomads, Bulgaria presents a compelling alternative with its low costs, thriving tech ecosystem, robust infrastructure, high quality of life, and access to talent and resources. As the digital economy continues to evolve, Bulgaria’s position as a dynamic and affordable destination for startups and remote workers is poised to attract an increasing number of ambitious individuals looking to make their mark in the world of entrepreneurship.
If you would like to be a freelancer in Bulgaria, do not hesitate to contact us. We would be more than happy to help you move to Bulgaria where to establish and grow. You can write to one of our team members in LinkedIn, if you feel ok with it, too.
