Time to Act in Bulgaria: New Tax Thresholds and the Opportunity to Obtain a MiCA License

Time to Act in Bulgaria: New Tax Thresholds and the Opportunity to Obtain a MiCA License

On March 21, 2025, Bulgaria’s Parliament approved the state budget for the year, which includes a significant and unexpected change for entrepreneurs: starting April 1, 2025, the mandatory VAT registration threshold will drop from BGN 166,000 to BGN 100,000 (approximately from €85,000 to €51,000).

This move is especially surprising, as the threshold had just been increased to BGN 166,000 on January 1, 2025. In less than four months, Bulgaria has sharply reversed its fiscal course. The new threshold will directly impact small businesses, with a significantly larger number now required to register for VAT.

This shift signals the government’s intention to optimize its tax base and align national legislation with EU standards—especially in light of delayed, but anticipated, changes aimed at facilitating cross-border operations for small businesses. While the EU directive introducing this scheme has been postponed, Bulgaria continues moving steadily toward deeper regulatory integration.

Alongside fiscal reforms, Bulgaria is rapidly positioning itself as one of the most attractive crypto-friendly jurisdictions in the EU. With the Markets in Crypto-Assets Regulation (MiCA) now in effect since December 30, 2024, Bulgaria has already laid the legal and institutional groundwork for full-scale crypto licensing. The Financial Supervision Commission (FSC) has been appointed as the competent authority for licensing Crypto Asset Service Providers (CASPs), while the Bulgarian National Bank oversees the licensing of e-money token issuers.

A transition period is in effect until December 31, 2025, allowing existing Virtual Asset Service Providers (VASPs) to continue operations under current rules while undergoing MiCA authorization. This is a strategic window for companies to prepare, submit their documents, and secure early positioning as fully licensed entities in the European crypto market.

How FINANCEIQ HUB LTD Supports Crypto Companies Entering the EU via Bulgaria

FINANCEIQ HUB LTD offers full legal, regulatory, and operational support for crypto companies looking to gain a legal foothold in Europe. Our services include:

• ✅ MiCA licensing support – from document preparation and compliance to communication with the authority and strategic advisory.
• ✅ Alternatives to MiCA – including the FMSB license in Canada, a powerful solution for global crypto businesses either as a complement or a flexible alternative to MiCA.
• ✅ Bank account opening for crypto companies – we work with partner banks that open accounts for companies licensed in and outside the EU.

If you’re looking to legalize your crypto operations in the EU, Bulgaria offers an ideal starting point. Transparent regulation, an open business environment, and active MiCA adoption make this jurisdiction an excellent choice right now.

Contact FINANCEIQ HUB LTD today for expert consultation and take the first step toward MiCA licensing or international expansion via Bulgaria and beyond.