If you considering to have a car for your business in Bulgaria, you may be wondering if it is better to buy or lease. In Bulgaria there are a specific tax rules for the both cases.
In case if you want to by a car, there are a few important things you should be familiar with:
- every year you must bring the car back to Bulgaria for the mandatory technical check ups, insurance and other stuff;
- you should check your local legislation in the country where you use the car for some restrictions. For example, if the car stays more than 3 consecutive months in Belgium, the car must be with Belgian plates;
-according to the Bulgarian tax legislation all expenses and VAT which are associated with the car (such as gasoline, tires, car services), are not deductible. In that case the only deductible expense will be the depreciation of the car.
On the other hand, if you lease a car you may avoid the above mentioned disadvantages. Please note that not every lease contract will be tax beneficial for you.
So if you need an advice how to choose the most profitable car rental contract, please contact us.