If an individual resides
in Bulgaria for more than 183 days in any calendar
year, they are deemed to be resident for tax purposes.
Someone whose main business or financial interests
are based in Bulgaria will also be deemed to be
a tax resident.
Residents of Bulgaria
pay income tax on income derived from within Bulgaria
and worldwide. Non-residents pay tax only on income
derived from within Bulgaria.
EU/EEA citizens do not
have to obtain a Residency Permit to stay in Bulgaria
for less than 90 days. However, they do have to
apply for a Residency Permit within 90 days of arrival
in the country to stay beyond 90 days. Non-EU/EEA
citizens may require a visa (depending on their
country of origin) and will also be required to
apply for a Residency Permit.
Cost
of Residence Document (approx)
Work
Permit Required
Work
Permit Authority
There are no fees associated with
a Residency Permit, though non-EU/EEA citizens will
have to pay the fees associated with obtaining the
relevant visa.
EU/EEA citizens do not require a
Work Permit (including those who are self-employed).
Non-EU/EEA citizens must apply for a Work Permit
through the nearest Embassy in their home country.
An employer can arrange for a Work Permit to be
issued in Bulgaria. The cost of a Work Permit is
EUR300.
Individuals and employers should
apply for a Work Permit through the National Employment
Agency (NEA).
Personal
Income Tax
Corporate
Income Tax
Social
Taxes
Personal Income Tax in Bulgaria is
very low compared to the rest of Europe. There is
a single rate of 10%, but as a result of this low
rate, there are no personal allowances permitted,
as a general rule.
Corporate Income Tax is also low
by European standards, at 10%. Losses can potentially
be carried forward for up to five years.
The total payable in respect of Social
Security contributions is up to around 29% of an
employee’s gross wage. The employee pays just
over 12.1% and the balance is paid by the employer.
The actual amount due depends on what is insured
(eg health, pensions).
Capital
Gains Tax
Property
or Wealth Tax
Stamp
Duty
Companies and individuals pay Capital
Gains Tax (CGT) as income tax and the tax will be
levied at the prevailing income tax rate. The sale
of an individual’s property if it is not their
main residence, or if they have lived in it for
less than five years at the time of sale, is liable
for CGT.
From January 1, 2010, the annual
real estate tax is imposed at between 0.1% and 0.25%
of the value of the property. Real estate transfers
face stamp duty of between 0.1% and 3%, whilst real
estate donations are subject to a 3.3%- 6.6% tax
(with a lower rate of between 0.4% and 0.8% imposed
on donations by immediate family members. No wealth
tax is imposed in Bulgaria.
From January 1, 2010, real estate
transfers are subject to stamp duty at between 0.1%
and 3%.
Other
Taxes
The standard rate of VAT is 20%.
There is a reduced rate of 7%, applicable to certain
reservations in the tourist industry. There is no
VAT on exports. Withholding tax is due on interest
and royalty payments at 10%, and on dividend payments
to individuals and non-resident corporate recipients
at 5% (with payments between connected EU corporate
entities exempt, subject to a 10% minimum shareholding
threshold).
I am facing a dilemma and would like to invite any reader to advise me.
I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.
In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.
However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?
If anyone has pertinent advice on these points, I’d be grateful to hear them.
Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary
Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.
Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...
I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD. Do I pay tax in France or Australia or both ? Any help or guidance would be much appreciated.France move
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