Freelancer making under 100k best options

[no4fresh]

Hi everyone, as stated in the title i'm looking for my best options as a freelancer making under 100k euro annually.

Short about myself: I'm from Norway working in sales for one client as a freelancer. My work is commission based so it's hard to tell exactly what my income is, but in the range of 60.000-75.000 euro annually. A combination of high tax, cost of living, a depreciating currency that affects inflation even more and weather that's depressing 3/4 of the year has made me look to relocate somewhere else. So i'm looking for a country where I can lower my taxes and cost of living, better weather(not to hard considering I live in Norway) and that's nice to live in.

I have done some research and will of course speak to a tax advisor before making the move, but I would appreciate some feedback pointing me in the right direction. I belive sales is considered as consulting and I have seen countries tax that differently than other activities(Georgia 20% instead of 1% tax and micro companies in Romania only allows you a certain % of your total revenue coming from consulting). So I have narrowed down my list to three countries: Italy, Bulgaria and Czech Republic based on an income of 67.500 euro annually.

Italy: With the "regime forfettario" I would end up at around 23% in tax+socials, both cost of living and the weather is good in the southern parts and I think I would really enjoy the way of living there.

Bulgaria: As a freelancer I would end up at around 16% in tax+socials, best cost of living out of the three especially if I would live in Varna, Burgas or Plovdiv instead of Sofia. I don't belive the weather is better than in southern Italy, but definitely better than Norway. When it comes to way of living I think I would enjoy living in Sofia, but perhaps the other three cities would be to small and boring for my liking.

Czech Republic: With the 60/40 regime I would end up at around 12.5% in tax+socials. I think Prague would be my only option. The cost of living seems to be much higher than Sofia and southern Italy, but still more affordable than Norway. Prague being a big city and attracting many tourist seems to be a good place to live, even though I have read the locals is not very friendly with foreigners.

Please share any more information about the three countries mentioned if you think it's something I should know and consider before moving there. And is it other countries in Europe or South America(Colombia, Brazil, Argentina) that would end up similar tax+socials and cost of living wise that I can look more into?

 

[void]

Czech Republic: With the 60/40 regime I would end up at around 12.5% in tax+socials. I think Prague would be my only option. The cost of living seems to be much higher than Sofia and southern Italy, but still more affordable than Norway. Prague being a big city and attracting many tourist seems to be a good place to live, even though I have read the locals is not very friendly with foreigners.

your calculation is correct more or less
for your kind of business it's very easy to deal with the paperwork - simply collecting issued invoices,applying 60% lump sum costs and once a year filling 3 documents online (tax returns, social security report, health insurance report) - any local accountant will do this for you for 80eur
beware that yearly turnover of about 80k+ eur will make you VAT payer which brings additional paperwork monthly and you will not be able to apply 60% costs on any income over this figure which makes your calculation a bit worse
banking is easy, relaxed and safe compared to other countries
CZ is probably (one of) the safest place in the world, people in general don't care about any bulls**t like politics, progressive ideas, climate change, religion etc., they are mostly friendly to (especially western world) foreigners and mostly speak decent English (the more in big cities like Prague or Brno)
I wouldn't personally recommend staying in Prague but would choose good smaller town but if you need/want/have to stay in Europe then this is one of the best options for low income individuals
the cost of living is way lower than in Italy but it's highly dependent on your lifestyle
weather sucks 8 months a year but hey... you're Norwegian, right?

 

[no4fresh]

your calculation is correct more or less
for your kind of business it's very easy to deal with the paperwork - simply collecting issued invoices,applying 60% lump sum costs and once a year filling 3 documents online (tax returns, social security report, health insurance report) - any local accountant will do this for you for 80eur
beware that yearly turnover of about 80k+ eur will make you VAT payer which brings additional paperwork monthly and you will not be able to apply 60% costs on any income over this figure which makes your calculation a bit worse
banking is easy, relaxed and safe compared to other countries
CZ is probably (one of) the safest place in the world, people in general don't care about any bulls**t like politics, progressive ideas, climate change, religion etc., they are mostly friendly to (especially western world) foreigners and mostly speak decent English (the more in big cities like Prague or Brno)
I wouldn't personally recommend staying in Prague but would choose good smaller town but if you need/want/have to stay in Europe then this is one of the best options for low income individuals
the cost of living is way lower than in Italy but it's highly dependent on your lifestyle
weather sucks 8 months a year but hey... you're Norwegian, right?

Thank you. So no really incentive to make more than 80k eur unless it's a decent amount over. It's almost the same in Italy where you only are eligible for the "regime forfettario" if you are under the 85k eur limit. I used numbeo to compare the cost of living, and even though it can't be 100% accurate it at least gives me an idea. Comparing Prague to Palermo the eating out, groceries etc seems pretty similar, but rent and utilities is double the price in Prague. I assume rent is cheaper in smaller towns, but how easy and time consuming is it to get into Prague with public transport? I'm in my 20s, like to go out to bars and clubs in the weekends, and have access to activities close by. So a smaller town could maybe be to small for my liking, and I would need to travel into Prague quite often.

 

[thedirtyteller]

Hi everyone, as stated in the title i'm looking for my best options as a freelancer making under 100k euro annually.

Short about myself: I'm from Norway working in sales for one client as a freelancer. My work is commission based so it's hard to tell exactly what my income is, but in the range of 60.000-75.000 euro annually. A combination of high tax, cost of living, a depreciating currency that affects inflation even more and weather that's depressing 3/4 of the year has made me look to relocate somewhere else. So i'm looking for a country where I can lower my taxes and cost of living, better weather(not to hard considering I live in Norway) and that's nice to live in.

I have done some research and will of course speak to a tax advisor before making the move, but I would appreciate some feedback pointing me in the right direction. I belive sales is considered as consulting and I have seen countries tax that differently than other activities(Georgia 20% instead of 1% tax and micro companies in Romania only allows you a certain % of your total revenue coming from consulting). So I have narrowed down my list to three countries: Italy, Bulgaria and Czech Republic based on an income of 67.500 euro annually.

Italy: With the "regime forfettario" I would end up at around 23% in tax+socials, both cost of living and the weather is good in the southern parts and I think I would really enjoy the way of living there.

Bulgaria: As a freelancer I would end up at around 16% in tax+socials, best cost of living out of the three especially if I would live in Varna, Burgas or Plovdiv instead of Sofia. I don't belive the weather is better than in southern Italy, but definitely better than Norway. When it comes to way of living I think I would enjoy living in Sofia, but perhaps the other three cities would be to small and boring for my liking.

Czech Republic: With the 60/40 regime I would end up at around 12.5% in tax+socials. I think Prague would be my only option. The cost of living seems to be much higher than Sofia and southern Italy, but still more affordable than Norway. Prague being a big city and attracting many tourist seems to be a good place to live, even though I have read the locals is not very friendly with foreigners.

Please share any more information about the three countries mentioned if you think it's something I should know and consider before moving there. And is it other countries in Europe or South America(Colombia, Brazil, Argentina) that would end up similar tax+socials and cost of living wise that I can look more into?

If you open a PFA in Romania, you will pay less than in Bulgaria. Their contributions are capped at around 400 EUR a month and then 10 percent in income tax, and it's only a statement per year, so less bureaucracy. PFA is the equivalent of enkeltpersonforetag (jeg er også fra Norge). The only downside is that you need to have some sort of diploma or proof that you "can" work in that profession. But I believe it's the same in Bulgaria if you decide to go there instead.

 

[void]

Thank you. So no really incentive to make more than 80k eur unless it's a decent amount over. It's almost the same in Italy where you only are eligible for the "regime forfettario" if you are under the 85k eur limit. I used numbeo to compare the cost of living, and even though it can't be 100% accurate it at least gives me an idea. Comparing Prague to Palermo the eating out, groceries etc seems pretty similar, but rent and utilities is double the price in Prague. I assume rent is cheaper in smaller towns, but how easy and time consuming is it to get into Prague with public transport? I'm in my 20s, like to go out to bars and clubs in the weekends, and have access to activities close by. So a smaller town could maybe be to small for my liking, and I would need to travel into Prague quite often.

I'm not strongly advocating here but once you decide to give it a go I can suggest couple of towns from 10k to 200k people that no only are way cheaper than Prague in every aspect but also have an excellent direct train connection to the very center of Prague within 20-60min which is the approach I would take if I'd like to live in CZ again and have access to the pleasures of the city

 

[polonieth]

Whereabouts in Norway are you based?

All of your choices are an improvement for taxes, for sure. Quality of life kinda depends. QOF in Norway is high, especially for the s**t munchers who outsource their well-being and decision-making to the government. Your earnings are slightly above that level; guess you might even be paying wealth tax? Which is of course a joke.

Based on 67.5k euros salary, I think it's a bit of a coin flip for Norway vs relocating and not some total no brainer. I'd prob choose Bulgaria just for the mountains and outdoor stuff. Having spent time in both, it really boils down to what you are looking for. I like making payments in cash, cheap beer, banitsa and just the overall scepticism of government, so I like Bulgaria a lot. But I also like air quality, outdoorsy life, landscapes and the general vibe in Norway.

All your choices are EU - why not book an Airbnb and go to each for a couple of months and see which you prefer before making any giant leaps to move there?

 

[cryptofriendly]

I'm not strongly advocating here but once you decide to give it a go I can suggest couple of towns from 10k to 200k people that no only are way cheaper than Prague in every aspect but also have an excellent direct train connection to the very center of Prague within 20-60min which is the approach I would take if I'd like to live in CZ again and have access to the pleasures of the city

How much would you need for a month living in the smaller cities in CZ? Prague seems somewhat expensive for rent, how are the other cities? Would the living costs (rent/food/etc. expenses) be comparable to Poland or Bulgaria?

 

[void]

How much would you need for a month living in the smaller cities in CZ? Prague seems somewhat expensive for rent, how are the other cities? Would the living costs (rent/food/etc. expenses) be comparable to Poland or Bulgaria?

impossible to answer - depends on too many things (family/kids, life style, ...)
I know nothing about Bulgaria, but Poland is comparable in my opinion (under current circumstances Poland is maybe a bit cheaper when in comes to food for example)
I'd say average family of four renting a flat can live with 2k EUR (net income) in a smaller town, 3k very comfortably, 4k in Prague easy and good life

 

[JustAnotherNomad]

I believe Norway has rules in place where you still have to pay taxes in Norway for up to 3 years or so after you move, unless you move to a country with a tax treaty. It's why many rich Norwegians move to Switzerland and not to Dubai. But I could be mistaken, maybe that's only for wealth tax.

There are many options in general. Your income isn't very high, so a few % more or less in taxes won't make that much a difference. I would look at what's important to you beyond taxes. How about Thailand?
One potential risk I see is that your work could be classified as employment as you have only one client. It might make sense to set up a company to avoid this risk.

 

[European]

Hi everyone, as stated in the title i'm looking for my best options as a freelancer making under 100k euro annually.

Short about myself: I'm from Norway working in sales for one client as a freelancer. My work is commission based so it's hard to tell exactly what my income is, but in the range of 60.000-75.000 euro annually. A combination of high tax, cost of living, a depreciating currency that affects inflation even more and weather that's depressing 3/4 of the year has made me look to relocate somewhere else. So i'm looking for a country where I can lower my taxes and cost of living, better weather(not to hard considering I live in Norway) and that's nice to live in.

I have done some research and will of course speak to a tax advisor before making the move, but I would appreciate some feedback pointing me in the right direction. I belive sales is considered as consulting and I have seen countries tax that differently than other activities(Georgia 20% instead of 1% tax and micro companies in Romania only allows you a certain % of your total revenue coming from consulting). So I have narrowed down my list to three countries: Italy, Bulgaria and Czech Republic based on an income of 67.500 euro annually.

Italy: With the "regime forfettario" I would end up at around 23% in tax+socials, both cost of living and the weather is good in the southern parts and I think I would really enjoy the way of living there.

Bulgaria: As a freelancer I would end up at around 16% in tax+socials, best cost of living out of the three especially if I would live in Varna, Burgas or Plovdiv instead of Sofia. I don't belive the weather is better than in southern Italy, but definitely better than Norway. When it comes to way of living I think I would enjoy living in Sofia, but perhaps the other three cities would be to small and boring for my liking.

Czech Republic: With the 60/40 regime I would end up at around 12.5% in tax+socials. I think Prague would be my only option. The cost of living seems to be much higher than Sofia and southern Italy, but still more affordable than Norway. Prague being a big city and attracting many tourist seems to be a good place to live, even though I have read the locals is not very friendly with foreigners.

Please share any more information about the three countries mentioned if you think it's something I should know and consider before moving there. And is it other countries in Europe or South America(Colombia, Brazil, Argentina) that would end up similar tax+socials and cost of living wise that I can look more into?

Have you considered
1. Applying for the "lavoratori impatriati" regime in Italy? If you move to the south, 90% of your taxable income from freelancing will be exempt (70% in the north). I believe it is not compatible with the "regime forfettario" so at your level of income I am not sure what option will be better but worth checking out.
2. Portugal and NHR: they also have an attractive "regime simplificado" for freelancers (similar to the forfettario in Italy) plus, if your work activity qualifies under NHR, you'd pay a flat 20% on your taxable income.
3. Greece and its 5C regime: 50% of your taxable income will be exempt and the minimum compulsory social contributions are flat and low (you can choose a higher one for higher pension)

 

[polonieth]

Why would you apply for any of these things or move on a whim?

Go to these places and stay there for an extended period. Then you will know if it's for you. You won't save taxes but your living expenses will drop compared to Norway.

 

[no4fresh]

If you open a PFA in Romania, you will pay less than in Bulgaria. Their contributions are capped at around 400 EUR a month and then 10 percent in income tax, and it's only a statement per year, so less bureaucracy. PFA is the equivalent of enkeltpersonforetag (jeg er også fra Norge). The only downside is that you need to have some sort of diploma or proof that you "can" work in that profession. But I believe it's the same in Bulgaria if you decide to go there instead.

Is there any deductions on the 10%? In Bulgaria you get automatic 25% deduction so you pay 7.5% tax and socials that are capped at 500 EUR a month. So very similar, but I dont belive you need any diploma or proof to work as a freelancer.

Have you considered
1. Applying for the "lavoratori impatriati" regime in Italy? If you move to the south, 90% of your taxable income from freelancing will be exempt (70% in the north). I believe it is not compatible with the "regime forfettario" so at your level of income I am not sure what option will be better but worth checking out.
2. Portugal and NHR: they also have an attractive "regime simplificado" for freelancers (similar to the forfettario in Italy) plus, if your work activity qualifies under NHR, you'd pay a flat 20% on your taxable income.
3. Greece and its 5C regime: 50% of your taxable income will be exempt and the minimum compulsory social contributions are flat and low (you can choose a higher one for higher pension)

1. I haven't checked that out, but surely it won't be much different to 5% tax.
2. I don't think consulting qualifies for the NHR, and you also have to pay socials on top of the 20% so I will end up at 30%+
3. Haven't done much research, but with my income I think it would be around the same or even a little bit more than Italy, and in that case I would prefer living in Italy.

I believe Norway has rules in place where you still have to pay taxes in Norway for up to 3 years or so after you move, unless you move to a country with a tax treaty. It's why many rich Norwegians move to Switzerland and not to Dubai. But I could be mistaken, maybe that's only for wealth tax.

There are many options in general. Your income isn't very high, so a few % more or less in taxes won't make that much a difference. I would look at what's important to you beyond taxes. How about Thailand?
One potential risk I see is that your work could be classified as employment as you have only one client. It might make sense to set up a company to avoid this risk.

That's only for wealth tax. I disagree with you that it won't make much of a difference. Im taxed 36% in Norway, so I would be left with a decent amount extra each month. Italy = 730 EUR, Czech Republic = 1320 EUR and Bulgaria = 1125 EUR. Combined with a lower cost of living(Bulgaria clearly the lowest, Italy and Czech Republic seems similar but still lower than Norway) I could live a better life, save more money and travel more.

Why would you apply for any of these things or move on a whim?

Go to these places and stay there for an extended period. Then you will know if it's for you. You won't save taxes but your living expenses will drop compared to Norway.

I think I will do that. Stay at each place for around a month, and make a decision of where I want to move at the start of next year. It seems I got my calculations right, but I was looking for any other countries that got under 25% in tax+socials I could add to my list.

 

[CyberCommander]

as freelancer is maybe also Estonia e-residency e-Residency of Estonia | Apply & start an EU company online or Stripe Atlas (Delaware) Stripe Atlas an interesting option.
They have not the lowest taxes but many processes automated and digitalized so you can manage everything via Internet very easy. Many digital nomades use this options and travel in the world.

 

[JustAnotherNomad]

That's only for wealth tax.

Don't think so. I just looked it up:

If you have lived in Norway for a total of ten years or more before the income year in which you take up permanent residency abroad, your tax residence in Norway cannot cease until after the end of the third income year after the year in which you took up permanent residency abroad.
https://www.skatteetaten.no/en/pers...ence-in-norway-when-moving-to-or-from-norway/
So you'll probably want to move to a treaty country to avoid that rule. The treaty would override this rule.

There are tons of countries with <25% in tax/social security. You really should start from a lifestyle perspective, not tax perspective. You may also be limited to work close to a certain timezone?
Start with the countries you find interesting, then talk to advisors about how much it would cost. There may be additional savings to be had through a good structure.

Anyway, just to give another option - check out Czechia with the flat tax deduction (paušální výdaje):
https://www.praguereferral.cz/czech-tax-deductions-and-discounts/
No need to keep receipts, you just get a deduction of expenses. Seems like it's 40-60% off your revenue. So if you make 75k euro, that's about 1.8M CZK, which seems to be the sweetspot for the 40% deduction. You then pay tax on maximum 1.08M CZK (or even less if you can get the 60% deduction). Ignoring other discounts, you'd then pay 15% on the remaining income, according to that article.
So you'd be looking at 500-600 euro in taxes per month. Not sure about social security though.
Lithuania should be quite similar.
But all of that is worthless if you don't want to live in Lithuania or Czechia. As you're complaining about bad weather, it's probably not a good option for you.

If you want to stay in Europe, I'd look at Portugal with the NHR system with a good structure (company in Malta/Cyprus). I believe it's about 5k per year for the structure and 5-12.5% tax. But there is of course a risk that the tax authorities will change their interpretation of the rules since it's officially not allowed.
Maybe Italy, but I've heard that social security contributions are substantial. So even if you pay little tax, you still pay a lot.

Of course Romania, Bulgaria, Cyprus and Malta are popular options as well.
If you're not limited to Europe, I'd definitely check out Thailand and Malaysia.

as freelancer is maybe also Estonia e-residency e-Residency of Estonia | Apply & start an EU company online or Stripe Atlas (Delaware) Stripe Atlas an interesting option.
They have not the lowest taxes but many processes automated and digitalized so you can manage everything via Internet very easy. Many digital nomades use this options and travel in the world.

You have understood neither what OP needs nor what you linked to.

 

[thedirtyteller]

Is there any deductions on the 10%? In Bulgaria you get automatic 25% deduction so you pay 7.5% tax and socials that are capped at 500 EUR a month. So very similar, but I dont belive you need any diploma or proof to work as a freelancer.

No there are no deductions, so it might be better taxation-wise for Bulgaria, but I looked it up regarding the diploma question because Bulgaria's laws and government are very similar to Romania, and according to this article you need some sort of proof of education or that you're qualified for that work if you want to operate as sole proprietorship or freelancer.
"To become a freelancer in Bulgaria, you must first prepare a detailed plan that outlines your freelance work activities. This must be provided to the Employment Agency along with proof of your education and related qualifications. "
How to Become and Work as a Freelancer in Bulgaria

Although I have no idea how strict they are with these regulations. Maybe someone here who lives there will have a better answer. What I've learned from living in Romania is that not everything is enforced here.

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