German Companies Said to Prefer Bulgaria, Cyprus to Seychelles, Panama

Hikes in taxes and social contributions have helped prompt an increasing number of German companies to move base to Bulgaria, where lower taxes and EU regulations make it an easier place to do business, according to a German tax and law expert.

"A growing number of European companies are shifting their place of business to Bulgaria. Ever increasing taxes and social contributions make low tax jurisdictions like Bulgaria a more and more attractive country," Alexander Schinzing, Corporate Counsel of English tax and law office ETC, who deals with UK and German business, told Novinite.com.

As an example of why the company's clients choose Bulgaria as their new place of business Schinzing cited the latest increases in health insurance contributions by 0.6% to 15.5% in Germany or Value-Added-Tax by 2.5% to 20% in the United Kingdom from 2011 on.

According to the expert companies from Germany and the UK are more likely to neglect Offshore-Tax-Havens like the Seychelles and Panama and prefer competitive places in the EU, like Bulgaria and Cyprus.

Data shows that while the total number of incorporations lowered in 2009 due to the financial crises and are just starting to recover, incorporations in Bulgaria have increased more than four times in comparison with the second half of 2008.