Finance and economics mentoring
New Horizons Paraguay
Ticker tape by TradingView

Bulgaria or Cyprus for company and residency?

Status
Not open for further replies.
I decided to try Bulgaria this year, and so far, I have been quite happy.‌ Setting up the company with bank account was about 500 euro, took one visit to‍ the notary and second to open the bank account (process has two phases, the lawyer⁠ who did the company papers opened bank account for the capital with PoA, I went⁤ alone to open the actual current account, internet banking, debit cards), got a personal account⁣ the same time too.

Bulgaria has much nicer climate than the Northern Europe, prices are⁢ one of the lowest in the EU. Language is difficult, but if you know some︀ Russian, not impossible.

There are no perfect options, it's always a compromise, but I wouldn't︁ call Bulgaria a shithole. People are nice and friendly, English is widely spoken in cafes,︂ restaurants, shops and Sofia feels like an easy place to live.
 
Consider CZ. If I remember correctly, as a sole proprietor, you can choose a simplified‌ accounting model. Instead of keeping receipts, your profit is calculated as revenue minus a lump‍ sum deduction of 60% (capped at 50k EUR or something). They have a flat tax⁠ of 15% or so, plus an additional wealth tax on income over a certain amount.⁤ My calculation was that you would be paying around 6% tax with an income of⁣ 100k if I recall correctly - and you don’t have to keep receipts.
It’s an⁢ EU and Schengen country.
 
But the exit tax only applies on company assets, not private. So if i close the︂ company in romania and after 2 months move me and my assets to another european︃ country, i won't pay an exit tax?

I'm planning to relocate next year to romania︄ from germany doing business a couple years, paying 3% cooperate tax, paying 5% dividende tax,︅ no vat (saying my microtransactions made outside of europe or at least romania).
Considering quality︆ of life, i'm guessing that's a good place to be, if u r in a︇ big university city/bucharest or at the coast.
 
Dividends are non taxable if you are not Cyprus Tax︍ Resident. However, please note that you need to declare the dividend in your country you︎ are living. If you move to Cyprus then you will become tax resident in Cyprus️ (you need to deregister as tax resident from the country you live now). In that‌ case you will be considered tax resident on Cyprus but with the status "non-dom". This‍ gives you exemption form tax on dividends for 17 years.

Tax on profits. Your right,⁠ you pay 12,5% on the net taxable profit.

Cost of living: A new apartment is⁤ around 200k-250k euro. For a house (plot 280sqm). Around 430k-440k easily.

Vat: if you invoice⁣ EU companies, no vat under the reversed mechanism taking into consideration tha they are vat⁢ register in their country.

Salary: My opinion is better to be registered as employee of︀ you own company except if you purchase the services you are providing to your clients.︁
 
It's capped at 2kk CZK with the effective tax rate of 12-13% including social charges.⁤ Not a bad option and much better than BG.

it can be avoided, but⁢ not so easy

Are you ok with the fact that the company's income and UBO︂ will be disclosed?
 
You can simply do a setup where the UBO is hidden and replaced by either‌ darks or nominee (illegal I know) but that's how the big players rule this game!‍
 
I see in this forum talking‌ about darks like pretty common but in my opinion it's pretty easy to get caught,‍ right?
 
That's your opinion‍ and why you never will go that path I guess! Once you figure out how⁠ this world works you will see that darks isn't a problem if you have figured⁤ out how this game is to play.

So to answer your question, there is no⁣ risk? and forgive me, I have read all the posts about these super loyal people⁢ around here who say you will get caught with darks, sorry but I give a︀ s**t.
 
Because I decided to move my a*s from a tax hell to a tax heaven. Can‌ you explain how the world works?
 
In the grand‍ scheme, it's a very small niche. It's just disproportionately popular in specialised communities like this⁠ one.

Most people use their own identities or trustees/nominees (which can include family members).

However, among criminals, the use of bought, stolen, or synthetic identities is common.

The risk of⁤ getting caught is determined largely by the quality of the identity and the volume of⁣ the business.

Synthetic identities fail easily if the identity is looked up against actual records.⁢

Stolen identities only fail if the victim gets wise to it and the financial institution︀ is alerted, one way or another. This varies a lot by jurisdiction.

Bought identities are︁ the "best" in that the person is real and doesn't mind having their identity used︂ for it. These only fall apart if the identity is questioned and carefully investigated on︃ a human character level. All proof of identity docs and interviews a financial institution craves︄ can be fulfilled, but if it comes down to it, it can be tricky to︅ explain how a poor babushka selling potatoes for a living made enough money to start︆ a multi-million dollar business.
 
You are wrong regarding the taxation of︅ dividends. A Cyprus tax resident can obtain a non-domicile status (if he has not been︆ a tax resident in Cyprus for 17 out of the last 20 years, OR if︇ he can prove his parents were not Cypriot and he was not born in Cyprus)︈ and not pay any tax on dividends for the next 17 years.
 
That's a good‍ move and wise decision 😀 - For sure not in the public forums. But you can⁠ open a thread in the mentor group (which I see you have access to) and⁤ I will reply there. It is not a one answer fits all question.
 
yes I know , wrong punching⁣ of numbers , it is not 1 but 17 years I made a correction exactly⁢ to the next message I posted after this message. Problem is, that to do this︀ process in Cyprus- company-accounting - residency- tax residency you need more than 10000 E cheapest︁ to the bones solution and bulgaria costs 1500-2000 E everything included. Ofcourse is not that︂ chic as cyprus, I agree but I want to save money not to be a︃ fashion mofel...
 
you need adress. It s a tourist attraction, so the‍ cheapest chicken house , just for the adress costs 500 E and we are talking⁠ about chicken nest. People are relativelly well off and not very btave so you will⁤ not find easily somebody desperate enough to give you his adress unless you pay $$$$.⁣ The residency process is not that easy because Cyprus like Greece is infested with Taliban⁢ which they never mention so in immigration the waiting line is right outside the street.︀ It is very difficult to find somebody to make for you the whole package .︁ They only ogfer to proceed your papers with you at immigration for 200-250 euro so︂ you will not be alone with the Taliban.
 
Status
Not open for further replies.

JohnnyDoe.is is an uncensored discussion forum
focused on free speech,
independent thinking, and controversial ideas.
Everyone is responsible for their own words.

Quick Navigation

Forums

User Menu

Login
Community platform by JohnnyDoe © 2025 JohnnyDoe
Top Bottom