Freelance in Bulgaria with FZE in Dubai tax question

[mgs999999999]

Hi guys,

Freelances in Bulgaria are paying 7.5% taxes + around 5700€ yearly for social security. In theory, in Bulgaria dividends are taxed at 5% and CT is 10%. If I work as a freelance in Bulgaria but I also own a free zone company in Dubai that generates let’s say 100000€ per year, how much should I pay in Bulgaria as tax resident for the money earned in Dubai? 0% 5% 7.5% or 10% tax?

Thanks a lot in advance!

Best wishes

 

[nov111]

Dividends from FZE should be subject to 5% dividend tax in Bulgaria. As long as you are a taxable person in Bulgaria.

Here is a brief extract from the double taxation agreement between Bulgaria and the UAE:

1. Dividends paid by a company resident in one Contracting State to a resident of the other Contracting State may be taxed in that other State.
2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and in accordance with the laws of that State, but if the holder of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed 5 per cent of the gross amount of the dividends.