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Bulgaria Freelance Taxes: Detailed Breakdown

dmitryfrank.com

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Re: Bulgaria Freelance Taxes: Detailed Breakdown

#111

Post by tudorconstantin »

mch0lic1 wrote: post #92
romaniatax wrote: post #52

Earlier quoted context omitted.

In Romania you pay 7% tax for an LTD (dividend + corporate tax) and for up to 100k turnover you pay 90% after tax as per above.

What about VAT? A turnover threshold in Romania is 88500€ (as quick google search suggests). How on earth are you keeping 90% when VAT is 19% there. Asking for a friend :)

One (LTD or PFA) only has to pay VAT if they invoice Romanian companies. Otherwise, based on what's called "taxare inversă" (reverse taxing), the invoices won't contain VAT, so it doesn't have to be paid either, even if the commercial entity is a VAT paying one.

Re: Bulgaria Freelance Taxes: Detailed Breakdown

#112

Post by eloff »

dimonomid wrote: post #106
eloff wrote: post #105

I just want to throw out there that this is nice, but it's zero in Panama on foreign source income. The country uses the US dollar and is quite stable and modern. I used to live there, and I want to go back to that tax system as soon as I can.

Thanks for that info! Yeah taxes in Bulgaria are lower than the average, but not lowest for sure. Good to know about Panama. What about social security though?

No social security to speak of. Health care is excellent and reasonably priced, so not too big a deal. Set aside some savings and get some basic insurance / critical illness insurance. No pension either, so plan for your own retirement.

With what you save on taxes you can do that and take three months of awesome vacation a year anywhere you want and still save money over most countries.

Re: Bulgaria Freelance Taxes: Detailed Breakdown

#113

Post by lostmsu »

romaniatax wrote: post #82
bogdanu wrote: post #79

Earlier quoted context omitted.

Yup, I'm a PFA with a fixed taxation rate (norma de venit) using 6202. Keep in mind that taxation rates differ by a lot for each county.

6202 is strictly for consulting services (ie. no programming). was advised by anaf and my accountant not to use it as it would be, basically, fraud (since i also write code not just "advice" - which is what the romanian tax system defines as consulting). use it at your own risk as they can back-tax if they catch you. either way thanks for this!

How are Romanian taxes on capital gains? VAT?

Re: Bulgaria Freelance Taxes: Detailed Breakdown

#114

Post by folmar »

ddorian43 wrote: post #64
akmarinov wrote: post #60

Earlier quoted context omitted.

The only drawback is that insurance companies don’t insure your car inside Albania for whatever reason.

Can you be more explicit ? Minimum car insurance is mandatory, and you can pay for full insurance if you want.

Full insurance in European Union often has explicit exception for Albania if you bring your car from there.

Re: Bulgaria Freelance Taxes: Detailed Breakdown

#115

Post by betaby »

galfarragem wrote: post #45
firechickenbird wrote: post #7

Considering moving in Bulgaria after this, thanks! My Freelance taxes/social sec/retirement tax in Italy is on average 76% on a total of 80k eur average gross annual income (98th income percentile).

Maybe is just me but paying 76% taxes is dystopic. The economics of slavery are not that far.

Developers in many developed countries (Germany, Belgium) are in ~50% effective tax bracket for the salary, add there company paid taxes for the 'salary budget' or whatever it called properly and you certainly in ~60% territory.

Re: Bulgaria Freelance Taxes: Detailed Breakdown

#116

Post by SantiagoElf »

overfl0w wrote: post #104
SantiagoElf wrote: post #85

Earlier quoted context omitted.

Sofia, without a doubt - the capital. Not much documents are needed in order to start working with an agency due to the fact that the market is starved for IT specialists. It's not uncommon a person with 0 experience to start at 2K BGN which is around 1K eur. Ranges are ( these are NET salaries after tax): - Super Jr -> 1k - 1.5k EUR - Juniour -> 1.5k - 2.5k EUR - Mid-Level -> 2.5k - 3.5k EUR - Sr. Dev -> 3.5k -> ~4-…

The ranges mentioned are in BGN. Nobody will pay 1.5k - 2.5k EUR to a junior. source: I work there Also this: https://noblehire.io/salary-survey-2021/

Nope EUR. If you are making less than 3000 BGN as a juniour in Sofia, you are getting robbed.

Re: Bulgaria Freelance Taxes: Detailed Breakdown

#117

Post by dimonomid »

eloff wrote: post #112
dimonomid wrote: post #106

Earlier quoted context omitted.

Thanks for that info! Yeah taxes in Bulgaria are lower than the average, but not lowest for sure. Good to know about Panama. What about social security though?

No social security to speak of. Health care is excellent and reasonably priced, so not too big a deal. Set aside some savings and get some basic insurance / critical illness insurance. No pension either, so plan for your own retirement. With what you save on taxes you can do that and take three months of awesome vacation a year anywhere you want and still save money over most countries.

So they literally don't take any tax for foreign income and don't require any social security payments? That's seriously awesome. Actually I specifically like it because, while I'm paying here those social security contributions for pension etc, I've no idea if I'm gonna be able to use them for the retirement, since I'm not a citizen, and not sure if I'm ever going to be one.

By paying those I'm helping other people though, which is not a bad thing I guess. But I'd definitely prefer this to be more of a donation and less of a tax.

Anyway, thanks again. You got me researching about Panama this evening.

Re: Bulgaria Freelance Taxes: Detailed Breakdown

#118

Post by dimonomid »

atxbcp wrote: post #109
dimonomid wrote: post #61

Earlier quoted context omitted.

Could you elaborate? Of course I do have a local accountant, and if what you're saying is true, I am disappointed she didn't mention that; they just said, paying salary will end up being more expensive than dividends.

By paying yourself with a salary via your company, you'd pay 10% revenue tax + health insurance (ЗО) + social insurance (ДЗПО, ДОО)... except the insurance part is capped on a maximum revenue of 3000 BGN or something like that... so as you make more money, your total tax rate converges to 10%. Take these numbers with a grain of salt because I'm no accountant, but I know for sure your accountant is wrong, because I kn…

Thanks, I'll research more into that.

In the meantime, I clarified in the article that as long as a company is concerned, the article only focuses on the dividends option, and added the link to your comment.

Re: Bulgaria Freelance Taxes: Detailed Breakdown

#119

Post by JacobAldridge »

eloff wrote: post #105

I just want to throw out there that this is nice, but it's zero in Panama on foreign source income. The country uses the US dollar and is quite stable and modern. I used to live there, and I want to go back to that tax system as soon as I can.

My understanding of “foreign sourced” is that it usually applies to things like pensions, dividends, rental income. If you’re working, the source of the income is where you do the work - not saying you can’t fly under the radar and not pay tax, and each country has its own specific nuances and laws so Panama may allow it, but if you’re living and working remotely in a territorial tax country then that’s “locally sourced income” unless you can find laws or rulings to the contrary.

“The general rule for sourcing wages and personal services income is controlled by *where the service is performed*. The residence of the recipient of the service, the place of contracting, and the time and place of payment are irrelevant.” - https://www.irs.gov/pub/int_practice_units/ftc_c_10_02_05.pd... (my emphasis)

Re: Bulgaria Freelance Taxes: Detailed Breakdown

#120

Post by p2detar »

SantiagoElf wrote: post #116
overfl0w wrote: post #104

Earlier quoted context omitted.

The ranges mentioned are in BGN. Nobody will pay 1.5k - 2.5k EUR to a junior. source: I work there Also this: https://noblehire.io/salary-survey-2021/

Nope EUR. If you are making less than 3000 BGN as a juniour in Sofia, you are getting robbed.

Can you provide any sources for these salaries? Thanks.
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