Most tax efficient residence in EU: Bulgaria, Romania, Cyprus?

[Dandyline]

For the 5% tax rate on Madeira, the requirement is a 75,000 investment in Madeira, and employing one Madeira resident (which could be yourself, if you become a Madeira resident).

It's only until December 31, 2028, and it only concerns CIT. The most important things are withholding tax on dividends, income tax rate and social contribution rates.

 

[Ade]

It's only until December 31, 2028, and it only concerns CIT. The most important things are withholding tax on dividends, income tax rate and social contribution rates.

100% agree. I often read tips which state ONE single aspect. But it matters all.
Thats why Bulgaria / Cyprus are interesting for many people as its quite straightforward.

 

[Dandyline]

100% agree. I often read tips which state ONE single aspect. But it matters all.
Thats why Bulgaria / Cyprus are interesting for many people as its quite straightforward.

Yes, what i like with Bulgaria is that you can pay a salary each month for a low tax and capped socials, if you earn above a certain amount, the total tax on payroll is even lower than dividends. And you don't need to go through audits.

 

[Ade]

Yes, what i like with Bulgaria is that you can pay a salary each month for a low tax and capped socials, if you earn above a certain amount, the total tax on payroll is even lower than dividends. And you don't need to go through audits.

Yes, I think its somewhere around 13.000€ per month where salary gets more attractive than paying out dividends.

 

[bubbledouble]

What is the effective tax rate above 13000€ salary ?

 

[Dandyline]

What is the effective tax rate above 13000€ salary ?

Its same for the whole amount, Around 11-12%

 

[Odeth]

Good morning Dandyline,

Seems you are well informed in terms of tax residency. I want to found a company. Can you give me some advice?

I am from Germany.

Have a good day.

If you stay within Schengen, Bulgaria is good. You can cash out from 20-30k/month as salary with low tax, don't have to wait for yearly dividends. Easy to maintain tax residency without staying in the country (with the correct setup).

If you want to stay outside of Schengen, Cyprus is good, travel in and out through North Cyprus while it looks like your inside the country. You can take a shareholder loan for 9% interest and then clear it against dividends.

No matter what, always make sure to have the correct setup (yearly rental contract, utilities, arrange monthly cc spending within the country with receipts).

Next try for reply.

 

[Ade]

What is the effective tax rate above 13000€ salary ?

At a monthly salary of 13.000€ it should be around 14,6% total expenses. With rising salary it will get closer to 10,x % because social contributions are capped. For example at 30.000€ monthly you will be around 12% total.

 

[Ade]

@Dandyline If you allow me to ask: Do you have (permanent) residency in Bulgaria / running a company in Bulgaria? Or did you choose another location?

 

[Dandyline]

@Ade Im currently looking into Bulgaria, seems like a solid choice for the EU market.

 

[Marshal]

@Ade Im currently looking into Bulgaria, seems like a solid choice for the EU market.

It certainly is. If you are a high earner and want to stay within EU, Bulgaria is a smart choice. And now since it's joined Schengen it is even more attractive.

 

[Marzio]

And now since it's joined Schengen

Only by air and sea at the moment.

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[Marshal]

Only by air and sea at the moment.

Press corner

Highlights, press releases and speeches

ec.europa.eu

Yes, correct. 9 out of 10 times I fly when I travel abroad (saves time and it's cheaper) so it's Schengen for me since 31 March

 

[JohnLocke]

Slovakia has a 7% dividend tax - one of the lowest in EU.

Don't you almost have to be a local to be able to live there peacefully?

 

[Marketint]

Don't you almost have to be a local to be able to live there peacefully?

I think so. Same for countries like Bulgaria. And Hungary. Also for non tourist cities in Asia. Less expats. Less English. Some places it’s better during high season. But it depends on your lifestyle. A peaceful life is for everyone different. I don’t speak Thai and I don’t want a Thai wife. For me it’s a choice and doesn’t mean that I doesn’t like my life here. And is doesn’t also mean that you never have to met with locals but don’t have to integrate. In most countries they are already happy that you come bring money.

And as Schopenhauer said “A man can be himself only so long as he is alone; and if he does not love solitude, he will not love freedom; for it is only when he is alone that he is really free. Constraint is always present in society, like a companion of whom there is no riddance; and in proportion to the greatness of a man’s individuality, it will be hard for him to bear the sacrifices which all intercourse with others demands”

Hard to blame him.