Receving dividends from Romania while being Bulgarian tax resident

[theotheo]

Hello
Government has announced some reform that put Romania out of tax wise countries for freelancer starting in 2024

I will relocate to Bulgaria in order to lose Romania tax residency for Bulgarian one in 2024 but I will somehow have some spare turnover to recover from Romania (WTH = 8%)

Any one has recommandation / know how does taxation work especially from recovering dividends from Romania entity into myself as individual ?
Surplus taxation from Bulgaria ?

 

[Don]

theotheo said:
Hello
Government has announced some reform that put Romania out of tax wise countries for freelancer starting in 2024

I will relocate to Bulgaria in order to lose Romania tax residency for Bulgarian one in 2024 but I will somehow have some spare turnover to recover from Romania (WTH = 8%)

Any one has recommandation / know how does taxation work especially from recovering dividends from Romania entity into myself as individual ?
Surplus taxation from Bulgaria ?
Click to expand...

You should pay 8%; the max rate based on the treaty is 10%, so they should apply the lower domestic rate.
If you set up a holding entity making your Romanian entity a subsidiary, you could reduce this WHT to 0%, e.g., in Estonia, which also has a favourable treaty with Bulgaria where the dividend tax is 0%

 

[Researcher]

Can you share details? What do you mean by "Government has announced some reform that put Romania out of tax wise countries for freelancer starting in 2024"?