Most tax efficient residence in EU: Bulgaria, Romania, Cyprus?

[Researcher]

EU citizen looking to relocate to tax efficient country with low dividend, income, crypto tax and tax optimized company setups.

Which of these countries would be the best?
Bulgaria
Romania
Cyprus?

Maybe others you'd recommend?

Low crypto taxes is also super important.

Business activity: IT, marketing.

 

[clemens]

Low crypto taxes you get in Germany. Overall lowest tax you look at Bulgaria, Portugal and Cyprus.

Romania seems to restructure their tax system right now so I would stay away.

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[Researcher]

clemens said:
Low crypto taxes you get in Germany. Overall lowest tax you look at Bulgaria, Portugal and Cyprus.

Romania seems to restructure their tax system right now so I would stay away.
Click to expand...

Germany is expensive and too much bureaucracy. Also, don't really see the low taxes in Germany, plus they have exit tax.

Portugal is tightening screws for their 0% crypto tax program, other than that - don't see any big benefits tax wise.

Bulgaria - definitely an option.
Cyprus - an option.

Which one to pick, Bulgaria or Cyprus?

 

[clemens]

Researcher said:
Germany is expensive and too much bureaucracy. Also, don't really see the low taxes in Germany, plus they have exit tax.
Click to expand...

Exit Tax yes, but if you keep your cryptos on a wallet untouched for 1 year at least, and you exchange them to FIAT this is not taxed. This because you have not traded with them!

Bulgaria has more to offer in regards to lifestyle compared to Cyprus which is just a sunny island where you can't do much.

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[Don]

Researcher said:
Germany is expensive and too much bureaucracy. Also, don't really see the low taxes in Germany, plus they have exit tax.

Portugal is tightening screws for their 0% crypto tax program, other than that - don't see any big benefits tax wise.

Bulgaria - definitely an option.
Cyprus - an option.

Which one to pick, Bulgaria or Cyprus?
Click to expand...

If you establish company and residence in these countries you pay 10% CIT + 5% wht in Bulgaria and 12.5% +2.65 wht in Cyprus (capped).

Cyprus has a non-dom regime which is beneficial if you have foreign source income.

One option to lower tax with Bulgaria is if you operate through a branch office of a foreign company in Bulgaria, and are resident somewhere else. For example Estonia company with branch in Bulgaria + residence in Estonia. This way you get rid of the WHT so overall tax rate is just 10%.

In regards to other options, Maltese fiscal unit stands out with just 5% overall tax rate. Likewise it could work with residence in Estonia.

 

[Gediminas]

Researcher said:
EU citizen looking to relocate to tax efficient country with low dividend, income, crypto tax and tax optimized company setups.

Which of these countries would be the best?
Bulgaria
Romania
Cyprus?

Maybe others you'd recommend?

Low crypto taxes is also super important.

Business activity: IT, marketing.
Click to expand...

It depends on the legal structure and income size.

For example, in Lithuania, you can effectively pay approx. 12 ”“ 13% tax on crypto gains and other income (up to individual level), Cyprus 1-2% (using special legal arrangements), Malta ”“ close to zero, Portugal ”“ close to zero.

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[GrumpyMess]

Gediminas said:
Cyprus 1-2% (using special legal arrangements), Malta ”“ close to zero
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What are these arrangements in case of Cyprus and Malta?

 

[Researcher]

GrumpyMess said:
What are these arrangements in case of Cyprus and Malta?
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Would also like to know. What are these "special arrangements"?

 

[Dasilva]

I think that with the costs to incorporate and maintain, and if you don't incorporate in Sofia or any other city but in the areas where you have a 0 percent corporate tax (see image), then I don't think there is any match for Bulgaria. Soon, on 31st March, Bulgaria will be in the Schengen Zone(air, water and end of the year land) and probably by 1st January 2025, they will have the euro.

Also Bulgaria don't care much if you are in the country or wherever you are, they don't have the instruments and resources to check it.

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[12345]

Bulgaria is good in terms of taxation but I heard that this extremely poor and ugly. You should visit it as a tourist and see if you really want to live there

 

[Dandyline]

Dasilva said:
I think that with the costs to incorporate and maintain, and if you don't incorporate in Sofia or any other city but in the areas where you have a 0 percent corporate tax (see image), then I don't think there is any match for Bulgaria. Soon, on 31st March, Bulgaria will be in the Schengen Zone(air, water and end of the year land) and probably by 1st January 2025, they will have the euro.

Also Bulgaria don't care much if you are in the country or wherever you are, they don't have the instruments and resources to check it.
Click to expand...

What about Bulgaria being on the FATF grey list, any issues with accounts and PSPs?

 

[JohnLocke]

12345 said:
Bulgaria is good in terms of taxation but I heard that this extremely poor and ugly. You should visit it as a tourist and see if you really want to live there
Click to expand...

Went there last months and never again for me. Vacation OK but not permanent residency there.

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[Armani]

12345 said:
Bulgaria is good in terms of taxation but I heard that this extremely poor and ugly. You should visit it as a tourist and see if you really want to live there
Click to expand...

It is actually , they are also quite rude and not too tourist friendly.
Varna during the summer is nice tho.
Hot slavic and nordic girls everywhere 😉

For everything business related i prefer Cyprus: good honest taxes that I'm happy to pay, pro business mindset, they speak english, not too many annoying Italians etc.

 

[mud]

Researcher said:
EU citizen looking to relocate to tax efficient country with low dividend, income, crypto tax and tax optimized company setups.

Which of these countries would be the best?
Bulgaria
Romania
Cyprus?

Maybe others you'd recommend?

Low crypto taxes is also super important.

Business activity: IT, marketing.
Click to expand...

Slovakia has a 7% dividend tax - one of the lowest in EU.

 

[polonieth]

JohnLocke said:
Went there last months and never again for me. Vacation OK but not permanent residency there.
Click to expand...

Which part did you go to?

 

[JimBeam]

Armani said:
It is actually , they are also quite rude and not too tourist friendly.
Varna during the summer is nice tho.
Hot slavic and nordic girls everywhere 😉

For everything business related i prefer Cyprus: good honest taxes that I'm happy to pay, pro business mindset, they speak english, not too many annoying Italians etc.
Click to expand...

Annoying Italians in Bulgaria???

 

[Marketint]

12345 said:
Bulgaria is good in terms of taxation but I heard that this extremely poor and ugly. You should visit it as a tourist and see if you really want to live there
Click to expand...

I have live some time in Bulgaria Varna . I think Varna and Sofia can be ok to live as couple/family.

It's not so tourist friendly . People speak less English in banks ect.

The summer is indeed much better as the winter. Winters can be very cold in varna. A lot of villas have heating problems . You have to pay attention to the heating system they use if you rent a house.

 

[JohnLocke]

polonieth said:
Which part did you go to?
Click to expand...

Went to Sofia, have been there are few times before for other reasons.

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[Benzouser]

clemens said:
Low crypto taxes you get in Germany. Overall lowest tax you look at Bulgaria, Portugal and Cyprus.

Romania seems to restructure their tax system right now so I would stay away.
Click to expand...

You think any issue with moving to RO and then stay long term not register residency. Im from EU..

 

[Dandyline]

If you stay within Schengen, Bulgaria is good. You can cash out from 20-30k/month as salary with low tax, don't have to wait for yearly dividends. Easy to maintain tax residency without staying in the country (with the correct setup).

If you want to stay outside of Schengen, Cyprus is good, travel in and out through North Cyprus while it looks like your inside the country. You can take a shareholder loan for 9% interest and then clear it against dividends.

No matter what, always make sure to have the correct setup (yearly rental contract, utilities, arrange monthly cc spending within the country with receipts).