Disclaimer: The term "cryptolicense" in this text should be understood as a permit for the activities of a virtual asset service provider (VASP). The use of the term "cryptolicense" is intended solely to simplify the perception of the text by clients and website visitors.
Bulgaria is rapidly gaining a reputation as one of the most attractive jurisdictions for cryptocurrency businesses. The country offers a unique combination of advantages, making it an ideal place for launching and developing startups.
Obtaining a cryptolicense in Bulgaria opens up wide opportunities for your business to grow and develop. You will be able to legally operate in the European market, attracting investments and expanding your customer base. Don't miss your chance to become part of the dynamically developing crypto industry in Bulgaria!
Bulgaria has a favorable tax system and minimal regulation of cryptocurrency companies
Key Numbers about Cryptolicense in Bulgaria
4 weeksaverage term of obtaining a cryptolicense |
10%corporate income tax (CIT) rate |
€1minimal contribution for share capital |
10%capital gains tax (CGT) rate |
€25application fee for a cryptolicense |
19%value added tax (VAT) rate |
Legal Opinion about Cryptolicense in Bulgaria
Ganna Voievodina
Manimama, CEO
"Obtaining a cryptolicense in Bulgaria is a strategic choice for businesses and individuals seeking a well-regulated environment within the European Union. Bulgaria offers a regulatory framework that promotes compliance and supports innovation in the cryptocurrency sector. This approach enhances trust in your business and aligns with evolving global standards. Contact us for a personalized consultation”.
Types of Activities with a License in Bulgaria
Cryptocurrency-to-cryptocurrency exchange: companies with a cryptolicense are authorized to conduct exchanges between various virtual assets, including utility tokens and coins.
Cryptocurrency transfers: companies with a cryptolicense provide secure cryptocurrency transfer services from client wallets to designated third-party wallets, offering an alternative to traditional fiat bank transfers.
Cryptocurrency-to-fiat and fiat-to-cryptocurrency exchange: companies with a cryptolicense facilitate conversions between cryptocurrency and fiat currency, offering clients flexibility in conducting transactions in multiple currencies.
On-ramp and off-ramp services: companies with a cryptolicense have significant business development opportunities, including providing B2B services such as on-ramp, off-ramp, and white-label products, which Manimama is ready to help launch, including connecting payment providers.
Custodial wallet services: using cryptocurrency storage wallets, companies with cryptolicense offer a secure way to store cryptocurrencies on behalf of users, with the option for operators to open wallets while maintaining control over private keys.
Account statement issuance: companies with a cryptolicense have the right to display balances and issue account statements and transaction details.
Crypto processing and crypto acquiring: companies with cryptolicense can provide services that allow merchants to accept cryptocurrency as payment, with subsequent transfer of the cryptocurrency to the merchant or its conversion into fiat currency.
Token sales: last but not least! Companies with a cryptolicense have the right to conduct ICOs, offering utility tokens and limited-use e-money tokens.
Benefits of Obtaining a Cryptolicense in Bulgaria
Choose the Package of Services
Popular package
Premium
Complete range of services needed to establish a cryptolicensed company with connection to KYC providers and a payment account for cryptocurrency operations.
- Company formation in Bulgaria
- Cryptolicense acquisition
- Registered address for one year
- Individual AML/KYC Policies
- Communication with the regulator
- Apostilled corporate document package
- Opening of a payment account for cryptocurrency operations
Advanced
Creation of a cryptolicensed company ready to start operating in the cryptocurrency sphere.
- Company formation in Bulgaria
- Cryptolicense acquisition
- Registered address for one year
- Individual AML/KYC policies
- Communication with the regulator
- Apostilled corporate document package
Basic
Company formation and cryptolicense acquisition.
- Company formation in Bulgaria
- Cryptolicense acquisition
- Registered address for one year
- Standart AML/KYC policies
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Step by Step Description
Step 1. Client document collection and process initiation
- Preliminary project analysis
- KYC data collection and business description
- Preparation of power of attorney for client representation
- Current copy of passport from country of residence
- Several company name options
Step 2. Registration of a Limited Liability Company in Bulgaria (after receiving documents in person)
- Opening a bank account for depositing share capital and providing support during the funding process
- Notarized company registration
- Entering company data into the Commercial Register
Step 3. Preparatory work before submitting a license application
- Development of AML/KYC policy designed for cryptocurrency operations of the client company
- Hiring a local executive director for the company and adapting their skills to the company's field of activity
- Submission and registration of the application with the National Revenue Agency of Bulgaria
Step 4. Opening corporate B2B & C2B accounts for a VASP (optional)
- Preliminary assessment and selection of a suitable financial institution for subsequent opening of a corporate account
- Preliminary negotiations with the financial institution and providing support to the client throughout the account opening process
Understanding Bulgaria's Legal Requirements
Cryptocurrency license is not required, only registration in a special crypto register is sufficient
Business activities involving virtual assets, such as cryptocurrencies (e.g., Bitcoin, Ethereum, Litecoin), are regulated in Bulgaria by legislation aimed at combating money laundering and terrorist financing. Currently, Bulgarian law does not require obtaining a special cryptolicense to conduct business with virtual assets. However, to legally carry out such activities, several conditions set by government agencies must be met.
Firstly, the business is required to obtain a permit from the National Revenue Agency (NRA). This government agency is responsible for controlling and supervising financial transactions in the country, including transactions with virtual assets. The permit from the NRA confirms that the legal entity complies with the requirements of the law and has the right to provide services related to cryptocurrencies, such as exchange, storage, transfer, and others.
Secondly, information about the applicant must be entered into a special register maintained by the National Revenue Agency. This register allows for tracking the activities of businesses that have received a cryptolicense and ensures transparency of operations with virtual assets. The register contains information about the name of the legal entity, its address, contact details, types of activities related to cryptocurrencies, and other important information.
Therefore, although a cryptolicense in Bulgaria is not yet mandatory, entrepreneurs wishing to work in the field of cryptocurrencies must comply with a number of requirements established by law. Obtaining a permit from the NRA and entering information about the company in the register are necessary conditions for legal activities with virtual assets in Bulgaria. These measures are aimed at ensuring the security and transparency of cryptocurrency transactions, as well as protecting consumers from fraud and other risks.
Requirements for Obtaining a Cryptolicense in Bulgaria
Minimum share capital (€1), 1 director, AML/KYC compliance, and registration in a special crypto register are required to obtain a cryptolicense in Bulgaria
To obtain a cryptolicense and have your data entered into the register of the National Revenue Agency of Bulgaria, several conditions must be met:
- The applicant must have a registered limited liability company (LLC) in Bulgaria. The minimum share capital for an LLC is only €1, making the registration process accessible to entrepreneurs.
- Before registering the legal entity, the founders are required to open a bank account in a Bulgarian bank. This is necessary for carrying out financial transactions related to the activities of the company with a cryptolicense, including transactions with cryptocurrencies.
- The applicant must strictly comply with all anti-money laundering (AML) legislation requirements. This includes developing and implementing a comprehensive AML policy adapted to the specifics of the crypto-licensed company's activities. The AML policy should include procedures for customer identification, transaction monitoring, reporting suspicious transactions, and other measures aimed at preventing the use of cryptocurrencies for illegal purposes.
- After fulfilling all the previous conditions, the legal entity must submit an application for entry into a special register of cryptocurrency companies maintained by the National Revenue Agency. Entry into the register is a confirmation that the legal entity meets all the requirements of the legislation and has the right to carry out activities with virtual assets in Bulgaria.
Compliance with all these conditions is mandatory for obtaining a permission to work with cryptocurrencies and entering a record in the register of the National Revenue Agency. This allows companies that have received a cryptolicense in Bulgaria to legally carry out their activities, ensuring transparency and security of operations with virtual assets.
Taxes in Bulgaria
Virtual currency exchange services are not subject to VAT
Taxation of companies that have obtained a cryptolicense in Bulgaria is carried out within the framework of the general tax legislation for legal entities, but taking into account the specifics of operations with virtual assets.
Main taxes:
- Corporate tax: the standard rate for all companies in Bulgaria, including those that have obtained a cryptolicense, is 10%. Taxable profit is calculated by deducting allowed expenses (salaries, rent, marketing, etc.) from income received from cryptocurrency transactions (commissions for exchange, storage, transfer, etc.).
- Dividend tax: when paying dividends to shareholders of a company with a cryptolicense in Bulgaria, a withholding tax is levied at a rate of 5%.
- Capital gains tax: selling cryptocurrency that was previously purchased may result in a capital gains tax. It is calculated as the difference between the sale price and the purchase price and is taxed at a rate of 10%.
- VAT: cryptocurrency transactions in Bulgaria are exempt from VAT. This means that companies with a cryptolicense do not charge VAT on their services and are not entitled to a refund of VAT paid on the purchase of goods and services.
Important: tax legislation in Bulgaria may change, so companies that have obtained a cryptolicense in Bulgaria are advised to consult with tax specialists to obtain up-to-date information and correctly calculate tax liabilities. Contact Manimama and we will be happy to provide you with advice on taxation, cryptocurrency regulation, and other issues in Bulgaria.
Frequently Asked Questions
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What is a cryptolicense in Bulgaria?A cryptolicense in Bulgaria is an official permit issued by the National Revenue Agency (NRA) to companies wishing to legally conduct activities with virtual assets. It confirms that the business complies with all Bulgarian legal requirements in the field of AML / CFT, as well as other regulations governing the circulation of cryptocurrencies.
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Is it mandatory to obtain a cryptolicense to work with cryptocurrencies in Bulgaria?Currently, obtaining a cryptolicense is not a mandatory condition for working with cryptocurrencies in Bulgaria. However, for legal activity, it is necessary to obtain permission from the NRA and enter a record of the legal entity in a special register of virtual assets operators maintained by the NRA. This confirms that the company complies with all legal requirements and operates transparently.
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What types of activities does the cryptolicense cover in Bulgaria?
- Exchange of cryptocurrencies for fiat currencies (euro, dollar, lev, etc.) and other cryptocurrencies.
- Storage of cryptocurrencies on behalf of clients (custodial services).
- Transfer of cryptocurrencies between wallets.
- Provision of payment services using cryptocurrencies.
- Issuing own tokens (ICO, STO).
- Provision of consulting services in the field of cryptocurrencies and blockchain.
The cryptolicense in Bulgaria allows you to carry out a wide range of activities related to virtual assets, including:
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Who can apply for a cryptolicense?Any legal entity registered in Bulgaria in the form of a limited liability company (LLC) can apply for a cryptolicense. The founders and directors of the company can be both residents and non-residents of Bulgaria.
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What are the requirements for cryptolicense applicants?
- Minimum share capital of € 1
- Opening a bank account in a Bulgarian bank before registering a company
- Having an office in Bulgaria (can be virtual)
- Appointment of a person responsible for compliance with AML requirements (compliance officer)
- Development and implementation of a comprehensive AML policy adapted to the specifics of the company's activities
- Providing a detailed business plan describing the company's activities, target audience, financial forecasts, and risk management measures
The main requirements for cryptolicense applicants include:
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What is the processing time for a cryptolicense application?The processing time for a cryptolicense application may vary, but usually takes 3 to 6 weeks from the date of submission of the complete package of documents.
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What is the cost of getting a cryptolicense?The cost of obtaining a cryptolicense depends on several factors, including the complexity of the project, the scope of services provided, the need to involve external consultants and lawyers. On average, total costs can range from €5,000 to €20,000. Manimama's minimum package is only €6,000, which is one of the best deals on the market.
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What documents need to be submitted to get a cryptolicense?
- Constituent documents of the company (charter, memorandum of association)
- Extract from the commercial register
- Information about the beneficial owners of the company
- AML policy and procedures
- Business plan
- Documents confirming the availability of an office in Bulgaria
- Documents confirming the qualifications and experience of the company's management
The list of documents required to get a cryptolicense may vary, but usually includes:
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What are the benefits of a cryptolicense in Bulgaria?
- Legal status and the ability to operate in the regulated EU market
- Increased trust from customers and partners
- Simplification of access to banking services
- Ability to attract investment
- Protection from legal risks
A cryptolicense in Bulgaria provides several advantages, including:
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What changes in legislation are expected regarding cryptolicenses?Currently, the Bulgarian government is actively working on improving legislation in the field of cryptocurrencies. In the future, it is possible to introduce mandatory licensing for all companies providing services related to virtual assets, which will comply with MiCA standards.
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What reports should a company with a cryptolicense provide?
- Financial statements (balance sheet, income statement)
- Reports on transactions with virtual assets
- Reports on compliance with AML requirements
A company with a cryptolicense is required to submit regular reports to the NRA, including:
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What are the prospects for the development of the cryptocurrency market in Bulgaria?
- Favorable legislation and tax regime
- Developed IT infrastructure and availability of qualified specialists
- Growing interest in cryptocurrencies from the population and business
Bulgaria has great potential for the development of the cryptocurrency market due to:
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What international standards apply to companies with a cryptolicense in Bulgaria?Cryptocurrency companies in Bulgaria must comply with international standards to combat money laundering and terrorist financing. This includes customer identification, transaction monitoring, and reporting of suspicious transactions. Also, the pan-European regulation of virtual assets (MiCA) will soon come into force. Contact Manimama for a detailed assessment of your company and bringing it into readiness before the new legislation comes into force.
Client Feedbacks
"Manimama OU is a reliable partner eager to cover all legal issues standing infront of them. They found a ready made company in Bulgaria for my client in 2 business days. The deal was closed very fast and the price was good".
"We came to Manimama team with a request to buld the NFT platform based on existing Bulgarian company. In result they managed to create a legal model avoiding obtaining the VASP authorization. As a result we have have a service which may be rendered to US residents. Thanks for that".
“We asked for advice in the field of crypto regulation in Bulgaria. As a result, we received a full range of services, which included building a tax scheme for our business, all contracts, and of course, the best consulting jn cryptocurrencies”.
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