Global Times: Thousands of Greek Businesses Flee to Bulgaria

Business | October 23, 2016, Sunday // 12:28| Views: | Comments: 1
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Bulgaria: Global Times: Thousands of Greek Businesses Flee to Bulgaria File photo, EPA/BGNES

More than 15,000 Greeks have registered new companies in Bulgaria's tax offices in the first quarter of 2016, the Global Times, a Chinese business edition, has said.

It quotes data from the Greek Embassy in Sofia and a report published by Greek daily Vima ("Tribune").

On average, a dozen accounts opened in Bulgaria on a daily basis, the Chinese Times says, citing Vima.

As many as 13 500 companies were registered in Bulgaria in 2015, while in 2013 it was only 9000, according to embassy data.

However, in an interview with Novinite earlier this year, Greece's former ambassador said as many as 2000 Greek companies had moved to Bulgaria in 2015, resulting in a total number of 14 400.

"Despite warnings from the Greek Finance Ministry that tax evaders will face strict penalties should audits reveal inaccuracies, several small and medium-sized Greek enterprises have turned to the neighboring country to avoid the "tax avalanche" of recent years in Greece, representatives of the Greek market said," according to the Global Times.

Tax on corporate profits in Greece stands at 29 percent, while in Bulgaria it is 10 percent.

"After the latest round of pension reforms and taxation changes introduced this year, self-employed Greeks are allegedly currently asked to pay up to 80 percent of their monthly reported income for taxes and increased contributions to social security funds, according to their unions and accountants."

Last week, the head of a fund for self-employed professionals, came under fire in Greece last week for his comment about paying social security contributions in Bulgaria.

The Global Times' report is available here.

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» To the forumComments (1)
#1
Jerry - 31 Oct 2016 // 00:05:38

It seems the old ploy of inter-company transactions between the Greek Parent Company and the Bulgarian Subsidiary company. Income remains in Bulgaria low tax rate and expenses remain in Greece at high tax rate causing losses to offset income.

This defeats economic growth, employment and innovation causing a stagnation.

The transaction becomes only paper without credence.

This trick is as old as the Greek gods.

Greeks do not like to pay taxes as revealed by the International Monetary Fund.

Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria