Flagging out to Bulgaria: The successful business model

Flagging Out truck fleets to BulgariaFew years ago, there was a trend in UK to flag out their lorry fleets to the Netherlands. The reasons were different - big vehicle insurance costs and high road taxes, even problems with VOSA itself.

Why Holland is not attractive for lorry fleet owners any more?

The simple reason is that the transport regulations of UK and The Netherlands getting closer and the costs for supporting a Dutch transport company gets quite closer to a UK one. There have been also some bad examples of how haulage flagging out shouldn't be done. I'm giving a link to the Google cache version of the article since Commercial Motor magazine website is currently down. Bad examples from the Dutch practice and the benefits of the Bulgarian legislation (or to be more precise - the lack of it) made us create the perfect truck fleet flagging out business model.

The Bulgarian business model: Flagging out truck fleets

Said in plain words, you can keep your drivers, lorries and business partners and business and just move the administration out to Bulgaria. What does this mean? Here are some practice tips:

  • You can get yearly vehicle insurance for about €1800;
  • No need to pay road tax in Bulgaria, as you will be operating mainly outside the country
  • MOT is done once a year for all vehicles which are less than 10 years old! How does this sound? MOT is as cheap as €140.
  • Easy adjusting to companies with self-employed drivers.
  • Corporation tax of only 10% flat. Dividend tax of 5%.
  • Full and dedicated legal and accounting services to your company
  • You can use your current CPC transport manager. Even more -  you or a person appointed by you can obtain a CPC from Bulgaria.

If you are interested in boosting your profits in the road transport business, do not hesitate and contact us. We can meet you in the UK and discuss how flagging out business model can fit your company best. You can email solicitor Milen Hristov on the following email: milen@mhlegal.eu

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