Malta or Bulgaria?

[LisaSimpson]

I know that in some countries, they encourage you to have a local bank account in their country so that they can have access to your bank account in case of fiscal investigation. Here is an example, this is just an example. You incorporate a company in France and you open a bank account in Spain. The French tax authority can't see what you do in your Spanish bank account.
Also, I think they may cost money when a tax authority asks another country to provide information from a bank owner.

 

[jackfrost]

Yes also a reason -not- to hold a Maltese bank account if you actually live there / have a business etc. Local "laws" make it very easy for you to get completely screwed on those bank accounts at least for a significant amount of time (year+) apart from the hold remittance issue.

 

[RnK]

I pay 100€ for my accounting (included annual statement and they represent me for the VAT and tax declarations)
so 1200€ per year which is not expensive.

C4Labs, any chance you can share the name of your accountant with me, huge difference compared to the €250 I'm paying Zara every month (with a very low amount of invoices). I can't PM, still hope you can send it my way. Many, many thanks in advance!!!

 

[LisaSimpson]

C4Labs, any chance you can share the name of your accountant with me, huge difference compared to the €250 I'm paying Zara every month (with a very low amount of invoices). I can't PM, still hope you can send it my way. Many, many thanks in advance!!!

Rnk i know global consult, they speak and understand english very well. They are located in Plovdiv, the second city in the center of bulgaria. Their website is not appealing, but they have a real team behind it. You can ask them to give you a quote for bookkeeping. Please let me know in this thread how it is working with them because I am also interested for the future just in case.

Price for company registration in Bulgaria only 180 EUR

 

[Suzy Emerald]

Would it work if my BZ company invoices my BG company in order to lower profit ans taxes?

 

[Jav]

Would it work if my BZ company invoices my BG company in order to lower profit ans taxes?

It wont work, at least on a long run. When your bg company goes under check by taxman they will ask you to pay the tax on those invoices like it was profit.

Rnk i know global consult, they speak and understand english very well. They are located in Plovdiv, the second city in the center of bulgaria. Their website is not appealing, but they have a real team behind it. You can ask them to give you a quote for bookkeeping. Please let me know in this thread how it is working with them because I am also interested for the future just in case.

Price for company registration in Bulgaria only 180 EUR

I work with an office who set up the company for 150EUR and is in Sofia.

 

[c4labs]

C4Labs, any chance you can share the name of your accountant with me, huge difference compared to the €250 I'm paying Zara every month (with a very low amount of invoices). I can't PM, still hope you can send it my way. Many, many thanks in advance!!!

I dont know why, I cant send you a message in private. I am waiting for the admin.

It wont work, at least on a long run. When your bg company goes under check by taxman they will ask you to pay the tax on those invoices like it was profit.

Exact, foreigners are on BG tax office radar when they own a BG company (same thing when the owner is a foreign corporation)
Even more if the activity is related to ecommerce, adult, consulting, etc.

 

[Mr Magoo]

What about the case when another company I own just invoices for services to my BG company? The BG tax man doesnt know I own both companies.

 

[c4labs]

Yes but if your BG company has one "client" (your BZ company), it will be suspicious
The ideal set up is to have 4/5 companies.

 

[Mr Magoo]

The BG company will have clients in EU for IT consulting. the BZ company will be a vendor of the BG company. I know, this setup to lower corp tax is to obvious so will not work probably.

 

[c4labs]

if you can hide it like this, it can work. Then, we can never predict any tax control but with an advanced setup like this, you reduce the chances to have any check

 

[Jav]

I dont know why, I cant send you a message in private. I am waiting for the admin.


Exact, foreigners are on BG tax office radar when they own a BG company (same thing when the owner is a foreign corporation)
Even more if the activity is related to ecommerce, adult, consulting, etc.

Its not about foreigners or foreign corporations as owners. Tax authorities use software to find risk companies and check them and also there are some "lucky" winners out of all companies which are checked as well. In case you have VAT reclaim the check is for sure so in general if you believe that in 5 years you wont be checked than go and invoice your tax heaven co but is a risk I wouldn't take.

 

[Jav]

The BG company will have clients in EU for IT consulting. the BZ company will be a vendor of the BG company. I know, this setup to lower corp tax is to obvious so will not work probably.

It will work till tax control and than there will be fine and 10% tax on the invoiced money to BZ company cause for the authorities it will be hidden profit.( as actualy is)

 

[c4labs]

Its not about foreigners or foreign corporations as owners.

They do check, my accountants and some BG entrepreneurs warned me for my company, they target those companies because its easier to money laundering or escape taxes when you have an online business/consulting/ in general selling virtual goods. Unicredit performs another check for foreigners too when you ask to open a bank account for your company.
Also, as the foreigner owner (when I said foreigner, I wanted to talk about tax residence of course) is not located in BG, it will involved transfers outside the country at some points so a risk of tax evasion

 

[Jav]

They do check, my accountants and some BG entrepreneurs warned me for my company, they target those companies because its easier to money laundering or escape taxes when you have an online business/consulting/ in general selling virtual goods. Unicredit performs another check for foreigners too when you ask to open a bank account for your company.
Also, as the foreigner owner (when I said foreigner, I wanted to talk about tax residence of course) is not located in BG, it will involved transfers outside the country at some points so a risk of tax evasion

Don't listen to every word. Tax authorities need to check your business first and than they will know what exactly and how exactly you are selling unless you reclaim VAT.

 

[LisaSimpson]

From what I know everywhere in Europe, tax authorities have the same obsession VAT VAT VAT. They want to be sure you pay VAT if you are VAT registered.
Bulgarian tax authorities inspect distance sellers regarding VAT registration

 

[Jav]

From what I know everywhere in Europe, tax authorities have the same obsession VAT VAT VAT. They want to be sure you pay VAT if you are VAT registered.
Bulgarian tax authorities inspect distance sellers regarding VAT registration

I agree and at the same time few billions from VAT are missing each year in EU.

 

[RnK]

I dont know why, I cant send you a message in private. I am waiting for the admin.

Hi C4Labs, hope you didn't forget me Any chance you can share your accountant with me?

In the thread above you can read I pay €250 / month to my Bulgarian accountant with just a few or sometimes zero invoices, so if there are people here working with a reliable but affordable accountant in Bulgaria please share their details with me, I would be very, very grateful! I can Google too for an accountant but I prefer references from people here, thank you so much!

 

[Jav]

Hi C4Labs, hope you didn't forget me Any chance you can share your accountant with me?

In the thread above you can read I pay €250 / month to my Bulgarian accountant with just a few or sometimes zero invoices, so if there are people here working with a reliable but affordable accountant in Bulgaria please share their details with me, I would be very, very grateful! I can Google too for an accountant but I prefer references from people here, thank you so much!

I can only recommend my accountant. It works for me without problems and the rates are locals.

 

[c4labs]

Hello @RnK as the admin did not reply to me about my message issues, I still cant send any private message sorry
I have 2 reliable accountants, one cheap (100€ per month) and one premium (the person is doing everything for you for your BG company AND your daily personal life, like finding a flat, helping with the tax card, contracts, phone, bank, etc., very useful if you decide to move to Bulgaria)
can you try to start a conversation? thanks