Low tax, low cost with good freedom setup: Romania vs Bulgaria is the final match?
- Thread starter ilpablo
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That's a better deal than Andorra for businesses with high profit margins.
Have an employee there (cheap), establish an economic substance, and no EU country can appropriate the company with CFC rules, you can reside anywhere. No need for residency visa and waiting months for permissions, freedom to move around.
Reside in Malta, pay yourself dividends, never transfer them directly to Malta, and pay ~6% total tax.
Seems too good to be true though. Is this it or am I missing something?
You are just missing some bureaucracy obligations that can be annoying to deal with, mostly in the first year.
Several visits to the local tax office to submit some documents for VAT registration etc. (In case your accountant don't want to do that)
And the monthly accounting is also something that not everybody is used to also requirement to print and keep your accounting data.
I would suggest an accountant, but for few invoices smartbill can be enough to do it yourself.
There are several things that will cost you money and time on the way.
And I don't have any idea about your plan with malta, but if you are not resident according to that video you have to pay 16% instead.
Several visits to the local tax office to submit some documents for VAT registration etc. (In case your accountant don't want to do that)
And the monthly accounting is also something that not everybody is used to also requirement to print and keep your accounting data.
I would suggest an accountant, but for few invoices smartbill can be enough to do it yourself.
There are several things that will cost you money and time on the way.
And I don't have any idea about your plan with malta, but if you are not resident according to that video you have to pay 16% instead.
Yes, you are missing that if you create a holding company that owns the Romanian company in a country that doesn't have withholding tax on dividends and allows the parent-subsidiary directive, you could be paying 1% total.
That's no big deal for me. If the costs are fixed and not a percentage of profit, I'm fine with that. Thanks for your info.
I wanted Malta to cash out dividends periodically (non-dom regime will grant me 0% capital gains tax). If it's the 16% withholding I'll have to accumulate and move to Romania after a few years to cash out to get 5% only. Not as convenient but better than giving up 50% where I live right now.
Last edited: Sep 29, 2021
Hi, do you know anything about Bulgaria's 183 day stay resident requirement? How can i avoid that and still be considered a resident of Bulgaria for tax purposes
Hi, do you know anything about Bulgaria's 183 day stay resident requirement? How can i avoid that and still be considered a resident of Bulgaria for tax purposes
very relevant also today, maybe even more than ever while so much has changed the last 3 - 4 years.
Can someone suggest some good setup like this ?
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