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

[James7]

If Estonia company pays no tax until distribution, could you lend yourself say 50% of‌ the profits each year, (pay the company arms length interest eg 9%) and pay zero‍ tax as no dividends?
How much could your company lend you annually before it looks⁠ like tax avoidance and be a legal problem?

 

[Marshal]

I guess Prague would suit someone with a family better. Never spend⁤ long periods of time there, but whenever I visit the Czech's capital alone, or with⁣ friends/family we leave with happy memories.

 

[Marzio]

Especially when BigSister was active.

 

[JosephLL]

Why 9%? Is this enforced by some kind of regulation?︁

 

[EliasIT]

You need to put a interest rate of the marked value, I don't think 9%‌ is necessary however, then you are on the safe side.

 

[Dandyline]

https://www.aretilaw.com/wp-content/uploads/2021/05/Tax-treatment-for-loans.pdf

 

[ilDavid6311]

+1 for Bulgaria; also, after joining Schengen, as long as you keep producing documents (rent,‌ utility bills), you can always keep residency while staying outside the country.

 

[CoinMaster]

how often do you have to get these documents and to whom ?‍

 

[ilDavid6311]

Best option is to rent a real cheap apartment outside Sofia; in‍ some villages, prices can be as low as €150 per month. After renting the apartment,⁠ sign-up for internet and utility bills, and keep paying it in order to keep it⁤ active.

If you need help with it, ping me.

 

[dziter]

I guess that you have to find a way to have real consumption‍ for your utility bills (to show someones lives there) to be on the safe side?⁠

 

[ilDavid6311]

Workarounds for that too; but consider that internet and bills are always⁠ flat fees, and with agreements with apartment owner, is possible to have flat fees for⁤ utilities as well.

 

[bountymounty]

Bulgaria sounds really appealing, how much are the costs for a basic setup?

 

[ilDavid6311]

Around $2k for non-resident UBO company (all fee included) + high street‍ banking

 

[MarkusCostigan]

Do you think there is a possibility to operate through a US‍ LLC from Bulgaria and pay 10%?

 

[ilDavid6311]

It depends, so many variables. For what‍ you need an US LLC? Where's the managing based? Where's the "center of interests" of⁠ the company? And so on.

 

[MarkusCostigan]

The idea would be to appoint a Bulgarian company as a member of‍ the LLC. Hire a manager for the LLC in Bulgaria, an office... in short, a⁠ bit of substance.

Why the LLC? Easy management, anonymous (publicly), purely online sales. No physical⁤ goods. No presence in US.

If I needed an EU company I could still use⁣ the Bulgarian.

 

[Don]

PE in Bulgaria pays 10% CIT.
Basically you would need⁣ to register a branch office of LLC in Bulgaria. There is no WHT if you⁢ repatriate profits so 10% can be the total tax rate depending on your personal residence.︀
All accounting needs to be prepared according to Bulgarian regulations. It doesn't really change the︁ management much compared to a Bulgarian company.

 

[vehzag]

You do this? Can you send a pm the other details please‍