Crypto license in Bulgaria 2023

When choosing a jurisdiction for conducting crypto-currency commercials, entrepreneurs frequently pay attention to Bulgaria. This jurisdiction offers quite favorable conditions for licensing such companies. It has a well-developed trade, a stable economy and a stable rate. Thus, cryptocurrency license in Bulgaria is an opportunity to join a rapidly growing market-space, within which the use of crypto-currency assets is intensively supported.

Benefits of opportunity to set-up cryptocurrency company in Bulgaria

1. Bulgaria cryptocurrency market opens access to all European spaces.
2. The country has agreements with more than 60 states in the absence of double taxation.
3. Acquisition of a company in this jurisdiction is cheaper than in other EU countries.
4. You can register enterprise quite quickly and without any difficulties.
5. Crypto-currency exchange registration in Bulgaria doesn’t require to be presented: for firm establishment and for opening a bank account.

Contemporary politics

Recently, crypto-transactions in jurisdiction are covered by cryptocurrency regulation in Bulgaria by third-party legal acts, in particular, Monetary Means Illegal Circulation Law defining such assets as digital value not linked to a legally currency, and does not possess monetary status, but suitable for exchanges and sales, storage in electronic form.

Regardless, the Central Bank doesn’t classify virtual means as cash in the context of taxation, profits from operations with crypto-currencies are classified as incomes from the vend of a fiscal asset. Incomes from operations with bitcoins must be declared, and tax is levied on them.

How do you get cryptocurrency license?

Operations with local crypto-assets are regulated and controlled according to the norms of local regulative division and fiscal market. Firms are allowed to perform operations involving both digital and fiat funds. Permission for such deals is issued by FSC.

Do you pay tax on crypto in Bulgaria?

Bulgarian Revenue Agency says all types of tokens need to be taxed equally – like financial assets.

1. Tax rates for individual executives. The legislation establishes income tax must be paid for profits received from operations with financial assets – 10% of the profits received during year-period.
2. Tax rates for organizations. After passing cryptocurrency formation in Bulgaria, firms pay corporative tax of 10% of incomes received. If this income is distributed among partners or one owner of the firm, a tax on dividends of 5% of net profit must also be paid.
3. Salary in cryptographic currency. Under an employment contract, wages can only be paid with fiat. Digital money usually accepts payments under a civil law contract or from a foreign company. On the technical side, in this situation, an employer from another country must be registered as an insurer in Bulgaria and covered by social security taxation. Restrictions from local laws are valid for an employment contract, but are not valid for civil law contracts. For a civil law contract, you need to pay a tax – 10%.

Over time, regulations of cryptocurrency in Bulgaria become wider and clearer – states adopt separate rules and regulations that control this industry. More recently, the FSC has proposed a strategy to improve local crypto-business, where 4 main themes are highlighted:

• cryptobusiness management to improve security in foreign exchange transactions;
• issuance of licenses for crypto-exchanges and financial and innovative firms;
• foundation of a center and environment for researching the latest engagements in crypto-field;
• oversight mechanism of a regulative frame.

Our experts are ready to provide you with comprehensive professional assistance in getting cryptolicense in Bulgaria. We have vast experience and extensive knowledge, which helps us to get the best results for our customers intending to open cryptocurrency company in Bulgaria. Contact us now and we will also offer you options for ready businesses for sale in other jurisdictions.

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