Greek tax authorities have launched inspections into the operations of thousands of Greek-registered companies operating in Bulgaria. More than 18,000 Greek firms are officially registered in the country, taking advantage of Bulgaria’s favorable tax regime.

Early findings indicate that some of these companies are effectively fictitious, with no real business activity, employees, or offices, existing primarily to transfer funds while benefiting from lower taxes. Financial experts note that during the onset of the financial crisis, numerous Greek companies relocated their operations to Bulgaria to benefit from more advantageous fiscal conditions.

Authorities are conducting cross-checks in cooperation with Bulgarian counterparts, examining both companies and individual actors. Investigations have revealed that several Greek firms registered in Bulgaria maintain ties with Greek parent companies but pay significantly lower taxes domestically, often holding only a Bulgarian bank account and lacking actual economic substance.

Legal experts warn that companies determined to be fictitious could face taxation in Greece. Similar inspections are also being carried out on Greek firms operating in Romania and Cyprus, as part of a broader effort to prevent tax avoidance and ensure compliance with national tax obligations.