Bulgaria tax resident
- Thread starter Maolaoadviser
- Start date
- Status
So you want to remain tax residence in Bulgaria without staying there 183 days per year?
You probably can't from a strictly legal point of view, but on the other hand, normally no one cares or knows you're tax non-resident unless you tell them.
Confirm with a Bulgarian lawyer, but it's generally quite easy to stay tax resident on paper in a jurisdiction even if you don't live there. Maintain strong ties (rent an apartment, own a house, have some utilities in your name, get private insurances, own a business with some employees, have family there, savings account in BGN with a local bank, and so on) and keep submitting tax returns and paying Bulgarian taxes. If you are a foreigner and need to renew a residence permit, do that as well.
I don't see any real risk that the Bulgarian tax authority would look into you, consider you tax non-resident, and refuse your tax payments.
Toggle signature
This is the probably the answer to your question.
You probably can't from a strictly legal point of view, but on the other hand, normally no one cares or knows you're tax non-resident unless you tell them.
Confirm with a Bulgarian lawyer, but it's generally quite easy to stay tax resident on paper in a jurisdiction even if you don't live there. Maintain strong ties (rent an apartment, own a house, have some utilities in your name, get private insurances, own a business with some employees, have family there, savings account in BGN with a local bank, and so on) and keep submitting tax returns and paying Bulgarian taxes. If you are a foreigner and need to renew a residence permit, do that as well.
I don't see any real risk that the Bulgarian tax authority would look into you, consider you tax non-resident, and refuse your tax payments.
Toggle signature
This is the probably the answer to your question.
If you stay somewhere else within EU/Schengen area where there are no borders no body will find out as you'll have no proof that you have left the Bulgaria BUT then they might take other things into consideration like where was where your family members (wife, kids and where kids go to school) where was phone number (in what country), do you have bills from Bulgaria (water, electricity, cellphone, internet), have you used any water etc...
10% CIT + 5% dividends tax = total of 14.5%
In many countries CIT is 2x that and the dividend tax is 4x that...
Which country is better, Bulgaria or Czech republic. I have a contract on site in Italy,but the taxes there are too much. I need to become a resident of Bulgaria or Czech republic, but work in Italy. I will be bringing my kid and my wife. Please advise
I'm by no means expert in this area... If you're from Italy, you should consider Romania as it's easy to learn the language (both are roman languages) and it will be easier for the kids to fit in... Also you have a lot of cheap flights from Timisoara and Bucharest to Italy (WizzAir tickets can be €20-€30). Depending on your business, they have micro companies where you pay 3% tax on on all money incoming (not profit) for some business activities (some are excluded) so this can be a great option if your earnings are up to 1M/year.
Above that Bulgaria may be a better choice as the CIT there is 10% while in Czech Republic is 19%. Living wise Czech is probably better than Bulgaria but all comes to personal preference.
You are definitely an expert, what an amazing knowledge you have. Thank you so much. I have to register residence to a country where the tax authorities won't find out that I'm residing in Italy. How can i do that and where?
Okay, so if you are currently a tax resident in Italy and plan to move somewhere else you need to be able to provide the Italian tax authorities with enough proof that you are actually living somewhere else... You would need to relocate your family there, rent or but property, have kids go there in the school, if possible also rent or sell your property in Italy (if you have)...
Remember, that only after 183+ days spent somewhere else you'll become their tax resident (not on the dat of relocation_. So plan that in advance...
Italian taxman can ask for silly things to see if you have actually moved out. Bank statements or cell phone can give away your location...
- Status