A viable option for all Forex brokers seeking to be regulated within the European Union is Bulgaria, as the country has implemented the European MiFID – Markets in Financial Instruments Directive in the national legislation. Brokerage licenses are issued by the Financial Supervision Commission of Bulgaria.
A few FOREX brokerages have already obtained Bulgarian Forex licenses. They were attracted by the advantages that a license from the country entails, including low set up costs and legal fees for company incorporation and licensing, and favorable tax systems compared to other European alternatives.
We are at your disposal to explain all the requirements of the Financial Supervision Commission of Bulgaria in details and to help you decide easily whether or not Bulgaria is a good option for your business. Among the advantages of the country are:
Access to the European markets
A licensed FOREX Broker in Bulgaria can operate in the whole European Union under the MiFID rule. MiFID harmonises the regulation of a wide range of investment services and activities and provides firms with passport rights to offer financial services throughout the EU. MiFID gives firms (including investment managers) the right to carry out any MiFID activity for which they have been authorised by their home State regulator in another Member State.
Bulgarian licenses are among the cheapest in the EU. We can help you to get a license quickly and with minimal costs.
Types of license:
• minimum capital of EUR 50,000 – IB, WL,
• EUR 125,000 (holding client money and financial instruments) – ECN
• EUR 750,000 – market maker
Located at the heart of the Balkans, Bulgaria is a strategic logistics hub. There are cheap regular flights to Sofia from world’s FOREX hubs – Israel, Cyprus and the UK, which are just a couple of hours away.
• Work force is well educated, highly skilled and multilingual
• 62.2 % of the total population is in working age (appr. 4.6 million)
• 60 000 students annually graduate from 51 universities
• 98% of the high school students study a foreign language (usually English) and 73% study a second language (mainly German, French, Spanish, Russian)
• 94% of the schools have Internet access
Low cost of doing business
• Bulgaria has the most favourable tax regime in Europe. Corporate income tax rate is 10%, the lowest in the EU. Personal income tax is 10 %, flat rate. (Among Bulgaria’s alternatives, New Zealand has a 30% corporate income tax, Cyprus has 12.5% corporate income tax but the minimum capital requirement is EUR 250,000)
• Depreciation time for computers and new manufacturing equipment is 2 years
• 5% withholding tax on dividends and liquidation quotas (0% for EU tax residents)
• Bulgaria has one of the most competitive costs of labor in Central and Eastern Europe
• Favorable office rents and low cost of utilities. Bulgarian cost of electricity for industrial users is 70% of the European average
Political and business stability
• Bulgaria is a member of the European Union, NATO and WTO
• The stability of the currency is supported by the currency board, pegging the Bulgarian lev to the euro at the level of 1.96
• Bulgaria has one of the lowest government debts in the European Union and one of the lowest budget deficits