Question Setup for offshore solo software dev agency

[legaltalk]

lostd said:
Hello, I am 21yo from Morocco currently working as a one-man software dev agency, my yearly income is increasing very fast and I will soon get to 100k$ a year, I mostly work with EU startups.

Why NOT Morocco:
-Garbage banking options (Max: 1k$ in international spending per year)
-High custom fees (30-70%); You pay custom fees on anything you order online + Cars that would cost $5k in Spain will cost $12k here 🙂
-High crime rates and poverty rates.
-Monopolies, Government corruption & Lobbying; Oil, Fruits, vegetables and meat all got 40-1000% times more expensive in the past 2 years.
-High Taxes (20-37%)

What I'm looking for:
-Secure & Stable Gov country.
-Stable currency?
-Access to Quality Healthcare (Even if it is paid)
-Reasonable living expenses (Rent, Gym, Daily necessities ±$1.5k/m)
-Good Internet connection.
-Good banking or at least eligible for Wise card.
-Low maintenance effort if possible. (Not too many papers to deal with, or at least ability to outsource it)

What I can compromise:
-I do not mind setting up a company in X country and living in Y country.
-I do not mind the distance.
-I do not mind the political inclination of that country as long as they leave me alone.

-I am NOT a digital nomad, I just want a quality living space where I can give my 100% to my work and my business.

Note: I've looked into Dubai, wondering if it is possible to combine the perks of it with a residency in a cheaper country.

Thank you in advance for all the responses
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Bulgaria can be a good place to open a company from a tax perspective, as it has one of the lowest corporate tax rates in the European Union at 10%. In addition, the country has a flat tax rate for personal income tax of 10%, which may also be attractive to entrepreneurs.

Furthermore, Bulgaria has a number of tax incentives and exemptions for certain industries and business activities, which can further reduce the tax burden on companies operating in these sectors.

However, it's important to keep in mind that tax should not be the only factor considered when deciding where to incorporate a company. Other factors such as the legal system, regulatory environment, business infrastructure, and workforce availability should also be taken into account. It's recommended to consult with a local lawyer ( we can assist you with that) or accountant to fully understand the legal and tax implications of setting up a company in Bulgaria.
Bulgaria can be a good place for living for many people, Cost of living: Bulgaria has a relatively low cost of living compared to many other European countries, particularly in terms of housing and food expenses.
Healthcare: Bulgaria has a universal healthcare system, but the quality of care can vary depending on the region and the specific healthcare facility.
Safety: Bulgaria is generally a safe country to live in, with a low crime rate compared to many other European countries.
Overall, Bulgaria can be a good place to live for those who value a low cost of living, rich cultural heritage, and a varied climate. However, it's important to do your own research and consider your individual needs and preferences before making a decision to move there.

 

[algotrader]

legaltalk said:
Bulgaria can be a good place to open a company from a tax perspective, as it has one of the lowest corporate tax rates in the European Union at 10%. In addition, the country has a flat tax rate for personal income tax of 10%, which may also be attractive to entrepreneurs.
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The nominal rates are low in theory, yes. But in practice, the effective rate depends on whether you find a competent accountant who is familiar with the type of business you are doing, otherwise you will pay more than the nominal rate + fines because of improperly filed tax returns. You also need to add social security contributions, which are high for low incomes but negligible for high incomes. In many cases, it is not necessary to create a Ltd. company but every accountant will try to push you.

I onboarded with one accountant to register me as a sole trader and do the income tax return for last year + VAT reporting, and then he told me that he encountered problems and stopped answering my emails (a few weeks before tax reporting deadline).
Accountants here seem to be very unreliable and unresponsive, most emails are not getting answered in general. This is not just a problem affecting me with my particular business (financial trading) but most Bulgarian or foreign entrepreneurs here I talked to.

+I don't see Bulgaria as an offshore jurisdiction. Even with Bulgarian residence it is difficult to open a business bank account here, most banks will ask you to provide a Bulgarian contact person with PoA (which is an absolute no-go for me).
For non-EU- citizens it is very difficult and bureaucratic to get a D visa. Lots of chicken-egg problems. Banks don't give you bank account without residence permit but you don't get D permit without Bulgarian account. Everything needs to get notarized with official translator, from rental contract to accountant PoA.

But otherwise Bulgaria has very low cost of living and cheap real estate. Especially for freelancers, it offers very low tax rates and these don't have problems with accounting. I see it more as a place to live cheaply than to do business.