Cryptolicense in Bulgaria: Simple but Effective

Bulgaria offers a favorable environment for cryptocurrency businesses within the European Union, featuring low tax rates and simplified regulatory requirements. This makes it attractive for scaling existing operations or establishing new ones.

Bulgaria currently lacks a dedicated licensing framework for cryptocurrency activities. Businesses must register with the National Revenue Agency for tax and social security purposes and comply with AML/CFT regulations.

Bulgaria provides low taxes and minimal regulation

Key Numbers about Cryptolicense in Bulgaria

4 weeks

average term of obtaining license

10%

corporate income tax (CIT) rate

€1

minimal contribution for share capital

10%

capital gains tax rate

€25

application fee for License

19%

value added tax rate

Legal Opinion about Cryptolicense in Bulgaria

Ganna Voievodina

Manimama, CEO

"Obtaining a cryptocurrency license 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 your business's credibility and aligns with evolving global standards. Contact us to get personal consultation".

Types of Activities with a License

Exchange crypto to crypto: VASPs are authorized to facilitate the exchange of various virtual assets, including utility tokens and coins, ensuring diversified trading options.

Custodial wallet services: VASPs, through custodial wallets, offer a secure means of storing cryptocurrencies on behalf of users, with operators having the ability to open wallets while maintaining control over private keys.

Crypto transfers: VASPs are authorized to facilitate the secure transfer of cryptocurrencies from clients' wallets to designated third-party wallets, presenting an alternative to traditional fiat wire transfers.

Account statements issuing: VASPs have the right to reflect the balance and issue the account and transaction statements.

Exchange crypto to fiat and fiat to crypto: VASPs enable the conversion between cryptocurrency and fiat currencies, offering customers the flexibility to transact in multiple currencies.

Crypto processing and crypto acquiring: VASPs hold the capability to conduct the service allowing merchants to accept crypto as a payment with a consequent transfer of crypto to the merchant or conversion it to fiat.

On-ramp and off-ramp services: VASPs have the wide opportunities for the business development including providing B2B services as on-ramp, off-ramp, white label products which Manimama is ready to help to launch including payment service providers connection.

Token sales: The last but not the least! VASPs are authorized to conduct ICO offering the utility and limited-use e-money token.

Choose the Package of Services

Advanced

Set up of company ready to start cryptocurrency operational activity

€6,000

  • Company formation in Bulgaria
  • Obtaining VASP autorization
  • Registered address for 1 year
  • Individual AML/KYC Policies
  • Communication with the regulator
  • Apostiled corporate documents
Order now

Basic

Creating the company and registration of VASP

€5,000

  • Company formation in Bulgaria
  • Obtaining VASP autorization
  • Registered address for 1 year
  • Standart AML/KYC Policies
Order now

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Step by Step Description

Step 1. Gathering documents from the client to start the process

  • preliminary project analysis
  • KYC collection and business description
  • preparation of power of attorney for client attestation
  • an up-to-date copy of the passport of the country of residence
  • preferred company name

Step 2. Registration of a limited liability company in Bulgaria (upon documents receipt on hands)

  • opening a preliminary banking account for contribution of the shared capital and supporting of the process of deposit
  • carrying out the notarial deed of company registration
  • entry of company data into the commercial register

Step 3. Pre-application work

  • development of AML/KYC policies tailored to the client company’s cryptocurrency operations
  • hiring and training a local Director for the company and adapting their skills to the company’s operations
  • filing and registration with the National Revenue Agency

Step 4. Opening B2B & C2B corporate accounts for VASP (Additional)

  • conducting preliminary assessment and match for suitable Financial Institution for further corporate account opening
  • preliminary negotiations with the payment institution and support of the client throughout the account opening process

Understanding the Bulgarian Requirements

Cryptocurrency business in Bulgaria is regulated as part of the implementation of measures to prevent and detect acts of money laundering derived from or in connection with criminal activities. Currently, cryptocurrency business can operate without a license, but it is necessary to register in a special crypto register maintained by the National Revenue Agency (NRA).

Crypto license is not required, you need only to register in a special crypto register

Requirements for VASP registration

A VASP license in Bulgaria requires a minimum share capital (€1), 1 director, adherence to AML/KYC regulations and have an entry in a special cryptoregister

There are several requirements that must be satisfied in order to register a company with the cryptoregister and to obtain a certificate of registration in Bulgaria:

  • established local limited liability company with a minimum share capital of €1
  • company founders have to open a bank account before registering a company
  • company must have one local director who will liaise with the regulatory authorities
  • a company must comply with all applicable AML regulations and approve full set of AML policies individually tailored under the project
  • a company is obliged to be entered in a special cryptoregister maintained by the National Revenue Agency (NRA)

Taxes in Bulgaria

Corporate Income Tax (CIT)

  • Rate: 10% (one of the lowest in the EU)
  • Tax Base: Accounting profits adjusted for tax purposes
  • Reductions: Limited, but include investment tax credits (specific sectors) and R&D expenses

Withholding Tax (WHT)

  • Dividends

    • 5% (EU/EEA residents) – 0% possible under specific conditions
    • 10% (non-residents) – potential reductions via Double Tax Treaties
  • Interest

    10% (potential reductions via Double Tax Treaties)
  • Royalties

    10% (potential reductions via Double Tax Treaties)
  • Capital Gains (non-residents)

    10% (some exemptions exist)
  • Tax Base: Gross amount of income

Capital Gains Tax (CGT)

  • Individuals

    • 10% flat tax (residents)
    • 10% final withholding tax (non-residents, with some exemptions)
    • Tax Base: Sales price minus acquisition price, less 10% deduction (immovable property)
  • Companies

    • Subject to standard CIT rate (10%)
    • Tax Base: Full amount of realized gains
  • Reductions: Exemptions apply for situations like the sale of personal property (held for a specific period), inheritance, and gifts between close relatives

Cryptocurrency exchange services are not subject to VAT

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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