Bucharest Denies Romanian Business Is Flocking to Bulgaria

Business | October 25, 2010, Monday // 14:11
Bucharest Refutes Reports Romanian Companies Flock to Bulgaria: Bucharest Denies Romanian Business Is Flocking to Bulgaria The cabinet in Bucharest disproves reports that Bulgaria's Danube city of Ruse sees 2 registrations of Romanian businesses per day over lower taxes and better conditions for the business in Bulgaria. Photo by Sofia Photo Agency

The Romanian cabinet refuted officially on Monday information that thousands of Romanian companies move or are moving their business to neighboring Bulgaria.

In an official statement, issued by Bucharest, the number of such companies is listed at 284 – these businesses have been registered and operating in Bulgaria by July, 2010.

"We further want to point out that we cannot even make a conclusion that these 284 companies have been established in 2010 or are the result of their relocation to Bulgaria," the statement reads.

It comes on the heels of numerous Bulgarian media reports that nearly 2 500 Romanian companies flocked to the southern neighbor over the spending cuts and austerity measures imposed in Romania, lower taxes and better business conditions across the Danube.

In Bulgaria revenue and profit taxes are 10% compared to 16% in Romania. The Value Added Tax (VAT) is also lower. Bucharest recently had to up VAT as a condition to obtain a EUR 2 B loan from the EU and the International Monetary Fund (IMF).

In addition, it is much easier to establish a company of Bulgaria where one needs less than a week and BGN 2 as initial capital.

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Tags: Bulgaria, Romania, VAT, lower taxes, business conditions, IMF, loan

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