Setup for offshore solo software dev agency

[legaltalk]

Bulgaria can︈ be a good place to open a company from a tax perspective, as it has︉ one of the lowest corporate tax rates in the European Union at 10%. In addition,︊ the country has a flat tax rate for personal income tax of 10%, which may︋ also be attractive to entrepreneurs.

Furthermore, Bulgaria has a number of tax incentives and exemptions︌ for certain industries and business activities, which can further reduce the tax burden on companies︍ operating in these sectors.

However, it's important to keep in mind that tax should not︎ be the only factor considered when deciding where to incorporate a company. Other factors such️ as the legal system, regulatory environment, business infrastructure, and workforce availability should also be taken‌ into account. It's recommended to consult with a local lawyer ( we can assist you‍ with that) or accountant to fully understand the legal and tax implications of setting up⁠ a company in Bulgaria.
Bulgaria can be a good place for living for many people,⁤ Cost of living: Bulgaria has a relatively low cost of living compared to many other⁣ European countries, particularly in terms of housing and food expenses.
Healthcare: Bulgaria has a universal⁢ healthcare system, but the quality of care can vary depending on the region and the︀ specific healthcare facility.
Safety: Bulgaria is generally a safe country to live in, with a︁ low crime rate compared to many other European countries.
Overall, Bulgaria can be a good︂ place to live for those who value a low cost of living, rich cultural heritage,︃ and a varied climate. However, it's important to do your own research and consider your︄ individual needs and preferences before making a decision to move there.

 

[algotrader]

The nominal rates⁤ are low in theory, yes. But in practice, the effective rate depends on whether you⁣ find a competent accountant who is familiar with the type of business you are doing,⁢ otherwise you will pay more than the nominal rate + fines because of improperly filed︀ tax returns. You also need to add social security contributions, which are high for low︁ incomes but negligible for high incomes. In many cases, it is not necessary to create︂ a Ltd. company but every accountant will try to push you.

I onboarded with one︃ accountant to register me as a sole trader and do the income tax return for︄ last year + VAT reporting, and then he told me that he encountered problems and︅ stopped answering my emails (a few weeks before tax reporting deadline).
Accountants here seem to︆ be very unreliable and unresponsive, most emails are not getting answered in general. This is︇ not just a problem affecting me with my particular business (financial trading) but most Bulgarian︈ or foreign entrepreneurs here I talked to.

+I don't see Bulgaria as an offshore jurisdiction.︉ Even with Bulgarian residence it is difficult to open a business bank account here, most︊ banks will ask you to provide a Bulgarian contact person with PoA (which is an︋ absolute no-go for me).
For non-EU- citizens it is very difficult and bureaucratic to get︌ a D visa. Lots of chicken-egg problems. Banks don't give you bank account without residence︍ permit but you don't get D permit without Bulgarian account. Everything needs to get notarized︎ with official translator, from rental contract to accountant PoA.

But otherwise Bulgaria has very low️ cost of living and cheap real estate. Especially for freelancers, it offers very low tax‌ rates and these don't have problems with accounting. I see it more as a place‍ to live cheaply than to do business.