@@OffshoreCitizen how much authority someones home country has over you if you have receded your residency and moved somewhere else. For example what information are you obligated to give out about where you live and what you do.
Thanks Michael, another informative video. I'm considering Varna/Plovdiv as my centre of activity. Is it better, in your opinion, to set up a Bulgarian company and consult through that (I am a software engineer) with corporate tax and dividend taxes, or an American LLC and pay the tax on salary.
Thanks for another good video! I am European, and a resident in Bulgaria since 2022, where I opened a company (but I work solo, as a freelancer). If I want to leave Bulgaria but keep my fiscal residency here, how many months do you think I should spend here every year? My lawyers says 183 days, but I agree with you that it can be less. Why would the government really care and reject my taxes?
@@OffshoreCitizen thanks I have watched all of your vids - seems like substance like a year round rental +90 days would satisfy Bulgaria provided don’t get looped in to another country (less than 180, no ties, etc)
Is that true with no 183 days rule? I thought that for Europeans is the best 60day non-dom rule in Cyprus and the rest of the countries need 183 days to be tax resident.
Great video Michael as always. I hadn't previously properly considered the benefit low minimum stay. Looking at the criteria, the exception only counts if you can prove center of vital interests. To me this is less attractive, as it leads to ambiguity and potential issues with my other tax residency (Norway - who are very strict on these things). I see the 183 day rule seems to be calculated as becoming tax resident for the fiscal year if you have 183 days in a 12 month period ending any time during that year. Does that mean I could spend 184 days ending on January 1 2022, and become tax resident for the full 2021 AND 2022?
In my opinion Plovdiv is more laid back and relaxed. It is also way more beautiful than Sofia. Sofia is where things happen, and it's also well connected by air.
So what you saying is, I can move to Sophia, and register a house there and still travel alsmost fulltime in other countries? I’m Dutch, fully remote job, in The Netherlands I pay a lot of tax as a freelancer
Instead of leasing accommodation for 12 months for the residency - that may never be lived in, I'm sure there's an enterprising soul out there who lives in Bulgaria who could sublet for an annual fee... like LAAS... Landlord As A Service!! ; ) Thoughts?
Yeah, I am confused the taxes, etc. I don't have a business and I really just want to retired and can't afford to do this in the USA or Canada. I want a place that I can live off my pitiful retirement income and maybe pop in and out of other European country for a visit (like German for Christmas, or a week on the beach in Spain, or craft fair in France....). Is Bulgaria a good place for this, or are there other countries which would allow this, or would other countries be better, like Czech Republic, Turkey, France, or even Ireland?
Another great video as usual. I think you did a good analysis of comparing Cyprus to Bulgaria. I didn't know about this minimum stay in Bulgaria. I remember you mentioned Cypress was 60 days but the other problem of course is where do you spend the rest of your time. Lots of countries are clamping down on making you a by staying so many days. I mean you got to stay somewhere. I get the cost of living being much lower, that's quite significant especially if you're earning income. Paying low tax and contrasting that with a low cost of living maybe cheaper in the final analysis depending on your particular situation. My concern might be the language, I can't speak Bulgarian or any other Slavic language for that matter so it might be a challenge. But I guess that's the same no matter where you go we're English is not the dominant language. But after watching your video, you have piqued my interest so I'm going to visit for sure hopefully when this pandemic quiets down a bit. Always a pleasure to watch your video
Thanks for your comment! Yes language can be a little struggle here. However most young people are speaking good English. It’s older folks that never had it in schools. We know people that lived here for decades and they don’t speak a word of Bulgarian, so it is certainly doable.
Michael, at 6.20mins you mentioned there are ways you can structure your taxes very efficiently as a resident of Thailand. Could you do a video on that please?
@@OffshoreCitizen Absolutely! how to structure a bitcoin mining business in the most tax efficient way? Perhaps using some or part of this method: Utilizing Kazakhstan low electricity costs and favorable tax regime for the mining equipment. Utilizing an El Salvador entity for it's BTC legal tender and no capital gains. or any structure on your mind for best tax efficiency in the lowest structure formation cost. Thanks!
Unfortunately air quality is very bad in Eastern Europe, especially in Sofia. If you take a look at charts you'll notice that Sofia constantly has the worst air quality in Europe. As for blackouts, we've never experienced it in Bulgaria nor Serbia. It used to happen in Montenegro occasionally, but would last for very short.
@@OffshoreCitizen Thanks for responding. Yes, I've looked at the charts but it helps to receive some anecdotal evidence as well. Sad to hear. I suppose this will likely change, but it might take awhile. Also, I lived in Poland for a bit and the air was horrible in the winter (coal heating) but not so bad at all during the summer. Perhaps wintering in the countryside or a smaller town or something is a good strategy.
@@jonathanwoodvincent Not always, as people in smaller towns have bad mindset of putting trash as an alternative to coal. I personally know the guy who has coal selling business and his 10-year old kid exposed they can heat 100l boiler with just one bag of trash. I was shocked.
Great question. I don't know the answer to this, but am currently considering going to Turkey for doctor's appointments while having my Bulgarian residency.
I am not able to find any evidence stating that you can become a tax resident on day 1 of staying there with no 183 days rule. On the contrary. Every thing I found states the 183 days rule. Can you please link your source? Thanks!
Yes, some banks find it shady. They don’t refuse you per se, but the due diligence process is much more severe. In the end you may or may not be accepted
Thanks Micheal for the video. 🌹 But if I can't roam the EU freely with this residency, then I guess the Maltese PR is much better than this. As I get to travel/stay anywhere in the EU and Malta doesn't have min. stay requirement as well. Am I correct?
They have different benefits. If you're looking for freedom of movement then yes that's correct. But Malta indefinite residency is expensive vs Bulgaria is cheap. Malta itself is not nearly as cheap. Much harder to get things done there, no banking options, pros and cons on taxes. Both can work just depends on your resources and goals
Yeah... I drunk partied with some Roma and blackout the other week, woke up and still had my wallet with everything still in it... just missing a lighter
No, as long as you have the US citizenship you will have to file US taxes no matter where you live in the world. If you only had French one you could move to Bulgaria and pay less tax.
@@OffshoreCitizen He could claim a non tax resident though and would be able to go to the USA for a few months a year right? The test is 330 days outside of the country or to prove tax residency in another place and not stay too long or am I wrong?
The only disadvantage of Bulgarian residency is that it is out of Schengen zone, so you can't just roam the rest of EU indefinetely. Also the urban myth that you can flash your Bulgarian ID-residency card and pop over the border to Schengen does not apply, they require a valid passport and visa ( or visa exempt) if not EU citizen...
@@OffshoreCitizen well the myth existed because the cards, citizen' s ID and residency card for EU citizen are very similar, only some lettering is different. I made the experiment several times, in no border crossing they would accept it alone, but in some low security checks, airlines, hotels, trains they would accept it as valid ID ...
@@OffshoreCitizen ok, so in your opinion, whats the closest or next EU schengen member country that can rival or equal the pros that Bulgaria has to offer coz folks would want to freely travel around europe?
@@benjamb1295 you're not wrong. Bulgaria is part of the EU, Bulgarian citizens have freedom of movement all over the EU, Schengen or not. Bulgarian citizenship = EU citizenship bypasses Schengen.
I have friends from Netherland,UK,Germany they say they never felt safer, you can walk in the parks at night!You can consider Varna and Plovdiv- they are very laid back towns.
Hey, what do you mean by "you dont have to stay for 183 days to become a tax resident"? Do you mean the authorities just dont care but its still technically illegal or is it actually legal to be a tax resident in bulgaria without staying 183 days? And if so, do you have a source for that?
Authorities in Bulgaria don’t care. They’ll happily take your money if you claim the tax residency there, even if you don’t spend 6 months in the country. It’s more an issue with your home country, they might care and they may actually want to check where are you spending majority of your time.
Portuguese taxes are horrible and prices are alot higher especially in the south and Lisbon area. Buying things like second hand cars in Portugal is also insanely expensive.
I'm going to Bulgaria next spring to see if I can find property. It seems like Bulgaria has many more advantages than disadvantages. There's no perfect place to be so we have to make the best of where we choose to go.
@@OffshoreCitizen about 10 years ago I looked online and there was very reasonable real estate on Black Sea. We are originally from Yugoslavija or now Croatia.
Very interesting that you only consider EU places for residency programs. As a quite young person I am a bit priced out of the EU residency programs. Also culturally I don't really like the EU, but it's interesting I could see how they could have some real benefits to be part of the EU as you mentioned in the video, easier banking etc. 🤔
@@OffshoreCitizen I'll definitely check it out, thanks. Currently I have residency in Serbia after getting out of Canada. Only 6 months residency requirement, not bad, I'm considering moving to Ukraine though, they have a residency program without a minimum requirement and some nice places (Kyiv, Lviv etc). But I'm planning to get a vehicle and do some exploring first before I settle on a place but I am leaning towards Ukraine, I really liked it here in Belarus where I am currently, I think East Slavia may be a good fit for me.
Not really. My experience was quite bad, especially if we talk about older people. They never learned English in school. Younger people did learn it in school but majority of them are still far from good. They also lack confidence to speak a foreign language. Bulgaria may be one of the least English friendly countries in Europe from my experience.
I don't think so but who knows. It's not directly bordering Russia or Ukraine and isn't affected much. Poland and Romania are much more exposed. My prediction would be war doesn't spread beyond Ukraine so then the outfall are refugees. But time will tell.
Intersting argument "the quality of life for the cost is quite reasonable" ... really? In other words the cave you can get and the quality of stones available for the cost is very reasonable. I agree 100% if living in a cave and eating stone is what you need. Bulgaria will be great in about 50 - 100 years. Never the less interesting argument.
@@OffshoreCitizen Let me try to answer it differently: I would look at Romania long before I would consider Bulgaria, although neither is a Schengen Area participant.
Thanks for your great information!
You're welcome! Anything else you'd like to see?
@@OffshoreCitizen how much authority someones home country has over you if you have receded your residency and moved somewhere else. For example what information are you obligated to give out about where you live and what you do.
Thanks Michael, another informative video. I'm considering Varna/Plovdiv as my centre of activity. Is it better, in your opinion, to set up a Bulgarian company and consult through that (I am a software engineer) with corporate tax and dividend taxes, or an American LLC and pay the tax on salary.
Excellent, informative vid - thanks.
You're welcome, Mark. Happy to be of service ☺
Anything you'd like to see next?
Thanks for this wonderful video. D low cost of living in Bulgaria is a big plus.
You're welcome!☺
@@OffshoreCitizen 😀
So, we rent or buy 'something' in Bulgaria, show it is the centre of our world , register in Bulgaria - job done! Renewal annually?
You mentioned 10% cit and 5% divi tax. But a 7% overall taxation. How would that work?
He talks about it in another video. Search for "International tax planning for Bulgarians"
Thx you bro ...love your video
Thanks for another good video! I am European, and a resident in Bulgaria since 2022, where I opened a company (but I work solo, as a freelancer). If I want to leave Bulgaria but keep my fiscal residency here, how many months do you think I should spend here every year? My lawyers says 183 days, but I agree with you that it can be less. Why would the government really care and reject my taxes?
This sounds perfect as a european citizen! This means I can pay bulgarian low tax and travel freely trough eu
Is the part about 90 days minimum stay for tax residency still true?
Please check out our videos on tax residency myths, 183 days myth
It's a very misunderstood topic
@@OffshoreCitizen thanks I have watched all of your vids - seems like substance like a year round rental +90 days would satisfy Bulgaria provided don’t get looped in to another country (less than 180, no ties, etc)
will bulgeria citizenship will allow me live anywhere in Europe?
Is it true that you need to have physical substance there, in order to not have minimum stay requirement, otherwise you need to stay there 183 days?
Depends from what angle you're looking, generally no but we have to caveat that.
National insurance costs aren't mentioned which look very high
Is that true with no 183 days rule? I thought that for Europeans is the best 60day non-dom rule in Cyprus and the rest of the countries need 183 days to be tax resident.
Great video Michael as always. I hadn't previously properly considered the benefit low minimum stay. Looking at the criteria, the exception only counts if you can prove center of vital interests. To me this is less attractive, as it leads to ambiguity and potential issues with my other tax residency (Norway - who are very strict on these things).
I see the 183 day rule seems to be calculated as becoming tax resident for the fiscal year if you have 183 days in a 12 month period ending any time during that year. Does that mean I could spend 184 days ending on January 1 2022, and become tax resident for the full 2021 AND 2022?
I've heard Plovdiv is better than Sofia - but do not know why? Any thoughts?
Sofia is drab and depressing while Plovdiv earned itself a European culture award
It’s laid back
In my opinion Plovdiv is more laid back and relaxed. It is also way more beautiful than Sofia. Sofia is where things happen, and it's also well connected by air.
Sofia is a 1h30m bus ride from Plovdiv or less using a car. Plus, there are a lot of trains as well. The distance is barely 140km.
@@kosmicheskiprah very good! thanks for the info.
So what you saying is, I can move to Sophia, and register a house there and still travel alsmost fulltime in other countries? I’m Dutch, fully remote job, in The Netherlands I pay a lot of tax as a freelancer
Oh I work fully remote for a US based company
From a Bulgarian perspective yes, the biggest thing is cleanly getting out of Netherlands
Instead of leasing accommodation for 12 months for the residency - that may never be lived in, I'm sure there's an enterprising soul out there who lives in Bulgaria who could sublet for an annual fee... like LAAS... Landlord As A Service!! ; ) Thoughts?
What do you think about Panama since they changed their friendly nations visa
Yeah, I am confused the taxes, etc. I don't have a business and I really just want to retired and can't afford to do this in the USA or Canada. I want a place that I can live off my pitiful retirement income and maybe pop in and out of other European country for a visit (like German for Christmas, or a week on the beach in Spain, or craft fair in France....). Is Bulgaria a good place for this, or are there other countries which would allow this, or would other countries be better, like Czech Republic, Turkey, France, or even Ireland?
Can you please explain lump sum tax in Switzerland
Another great video as usual. I think you did a good analysis of comparing Cyprus to Bulgaria. I didn't know about this minimum stay in Bulgaria. I remember you mentioned Cypress was 60 days but the other problem of course is where do you spend the rest of your time. Lots of countries are clamping down on making you a by staying so many days. I mean you got to stay somewhere. I get the cost of living being much lower, that's quite significant especially if you're earning income. Paying low tax and contrasting that with a low cost of living maybe cheaper in the final analysis depending on your particular situation. My concern might be the language, I can't speak Bulgarian or any other Slavic language for that matter so it might be a challenge. But I guess that's the same no matter where you go we're English is not the dominant language. But after watching your video, you have piqued my interest so I'm going to visit for sure hopefully when this pandemic quiets down a bit. Always a pleasure to watch your video
Thanks for your comment! Yes language can be a little struggle here. However most young people are speaking good English. It’s older folks that never had it in schools.
We know people that lived here for decades and they don’t speak a word of Bulgarian, so it is certainly doable.
Michael, at 6.20mins you mentioned there are ways you can structure your taxes very efficiently as a resident of Thailand. Could you do a video on that please?
I believe I have it relates to how their quasi territorial remittance based system works combined with their corporate residency rules
Great information. Thanks a lot. How does BUL compare with Georgia? I think the scale tilts slightly towards GE
Have you checked this video ua-cam.com/video/NL3kAja1MpU/v-deo.html out?
Great thoughts
Thank you, Noam!
Anything you'd like to see next?
@@OffshoreCitizen Absolutely! how to structure a bitcoin mining business in the most tax efficient way?
Perhaps using some or part of this method:
Utilizing Kazakhstan low electricity costs and favorable tax regime for the mining equipment.
Utilizing an El Salvador entity for it's BTC legal tender and no capital gains.
or any structure on your mind for best tax efficiency in the lowest structure formation cost.
Thanks!
Hey. Great content. Do you have any thoughts about land or other in El Salvador now that they have made Bitcoin a legal currency. Thanks
the air quality in cities in Eastern Europe, Georgia, Turkey, etc has worried me a bit. any thoughts on that?
Also water quality and occasional blackouts. But it's manageable from what I gather
Unfortunately air quality is very bad in Eastern Europe, especially in Sofia. If you take a look at charts you'll notice that Sofia constantly has the worst air quality in Europe.
As for blackouts, we've never experienced it in Bulgaria nor Serbia. It used to happen in Montenegro occasionally, but would last for very short.
@@OffshoreCitizen Thanks for responding. Yes, I've looked at the charts but it helps to receive some anecdotal evidence as well. Sad to hear. I suppose this will likely change, but it might take awhile. Also, I lived in Poland for a bit and the air was horrible in the winter (coal heating) but not so bad at all during the summer. Perhaps wintering in the countryside or a smaller town or something is a good strategy.
@@jonathanwoodvincent Not always, as people in smaller towns have bad mindset of putting trash as an alternative to coal. I personally know the guy who has coal selling business and his 10-year old kid exposed they can heat 100l boiler with just one bag of trash. I was shocked.
Have you also considered an SRL in Romania and only pay 6-9% in total ?
I always enjoy your content! Your channel should have much more subscribers
Hi Michael. Are there some private clinics/hospitals available over there, meaning out of the public health system?
Great question. I don't know the answer to this, but am currently considering going to Turkey for doctor's appointments while having my Bulgarian residency.
we live in Penticton BC Canada and in this pendemic we are retire to Bulgaria.
I am not able to find any evidence stating that you can become a tax resident on day 1 of staying there with no 183 days rule. On the contrary. Every thing I found states the 183 days rule. Can you please link your source? Thanks!
I notice that to
I can nowhere find what he said about tax resident 1 day stay
I am also intersted
Michael, are there any international banks that will refuse to do business with people who are tax residents and/or citizens of Bulgaria?
Yes, some banks find it shady. They don’t refuse you per se, but the due diligence process is much more severe.
In the end you may or may not be accepted
Thanks Micheal for the video. 🌹
But if I can't roam the EU freely with this residency, then I guess the Maltese PR is much better than this. As I get to travel/stay anywhere in the EU and Malta doesn't have min. stay requirement as well. Am I correct?
They have different benefits. If you're looking for freedom of movement then yes that's correct. But Malta indefinite residency is expensive vs Bulgaria is cheap. Malta itself is not nearly as cheap. Much harder to get things done there, no banking options, pros and cons on taxes. Both can work just depends on your resources and goals
How is the Safety issue there ? Sofia and countryside.
It’s quite safe, no worries about that.
Yeah... I drunk partied with some Roma and blackout the other week, woke up and still had my wallet with everything still in it... just missing a lighter
@@hanumanji20 Everyone's always missing a lighter after a night like that 😋😋🤣🤣😎😎
How many months requirement to stay outside bulgaria as a temporary resident in bulgaria per year ?
What do you mean?
If you have a Temp Resident card you don't need to leave the country.
You can stay in Bulgaria the whole time
I have 2 passports. , French and USA. Do I avoid us tax if I make a residency ? If I have to give up my us passport no thanks.
No, as long as you have the US citizenship you will have to file US taxes no matter where you live in the world.
If you only had French one you could move to Bulgaria and pay less tax.
@@OffshoreCitizen He could claim a non tax resident though and would be able to go to the USA for a few months a year right? The test is 330 days outside of the country or to prove tax residency in another place and not stay too long or am I wrong?
@@OffshoreCitizen Filling taxes is not always equal to paying taxes. Please find the: Foreign Earned Income Exclusion
Sound pretty good to me
For businesses with under 1mil you can chose to pay 1% from turnover corporation tax 5%
Romania
The only disadvantage of Bulgarian residency is that it is out of Schengen zone, so you can't just roam the rest of EU indefinetely. Also the urban myth that you can flash your Bulgarian ID-residency card and pop over the border to Schengen does not apply, they require a valid passport and visa ( or visa exempt) if not EU citizen...
Correct, you can NOT travel with Bulgarian ID card as a foreigner. The card is temporary document and is not meant for travel.
@@OffshoreCitizen well the myth existed because the cards, citizen' s ID and residency card for EU citizen are very similar, only some lettering is different. I made the experiment several times, in no border crossing they would accept it alone, but in some low security checks, airlines, hotels, trains they would accept it as valid ID ...
@@OffshoreCitizen ok, so in your opinion, whats the closest or next EU schengen member country that can rival or equal the pros that Bulgaria has to offer coz folks would want to freely travel around europe?
Bulgarian citizens, has freedom of movement in the Schengen zones. Check it out. I could be wrong.
@@benjamb1295 you're not wrong. Bulgaria is part of the EU, Bulgarian citizens have freedom of movement all over the EU, Schengen or not. Bulgarian citizenship = EU citizenship bypasses Schengen.
What has been your experience about safety and comfort living in Sofia?
I have friends from Netherland,UK,Germany they say they never felt safer, you can walk in the parks at night!You can consider Varna and Plovdiv- they are very laid back towns.
Hey, what do you mean by "you dont have to stay for 183 days to become a tax resident"? Do you mean the authorities just dont care but its still technically illegal or is it actually legal to be a tax resident in bulgaria without staying 183 days? And if so, do you have a source for that?
search "tax residency certificate bulgaria", and a permenant apartment is enough.
Authorities in Bulgaria don’t care. They’ll happily take your money if you claim the tax residency there, even if you don’t spend 6 months in the country.
It’s more an issue with your home country, they might care and they may actually want to check where are you spending majority of your time.
Would you rank Bulgaria higher than Porutgal?
ahhaahah
Portuguese taxes are horrible and prices are alot higher especially in the south and Lisbon area. Buying things like second hand cars in Portugal is also insanely expensive.
I'm going to Bulgaria next spring to see if I can find property.
It seems like Bulgaria has many more advantages than disadvantages.
There's no perfect place to be so we have to make the best of where we choose to go.
We've made many videos on Bulgaria. Have you watched some of them?
@@OffshoreCitizen On it ,thanks!
Did you apply for residency yourself, or did you get Immigration Agent to assist you.
I've done both. I wouldn't recommend doing it yourself the first time, English is poor in these offices
we are planning to retire to Bulgaria next year.
Nice! How did you decide on Bulgaria?
@@OffshoreCitizen about 10 years ago I looked online and there was very reasonable real estate on Black Sea. We are originally from Yugoslavija or now Croatia.
@@RiosTikvic How did you choose Bulgaria over Croatia?
@@tw9419 Croatian government is corrupt
Very interesting that you only consider EU places for residency programs. As a quite young person I am a bit priced out of the EU residency programs. Also culturally I don't really like the EU, but it's interesting I could see how they could have some real benefits to be part of the EU as you mentioned in the video, easier banking etc. 🤔
Check this video out ua-cam.com/video/Z_MulAw4pfs/v-deo.html
What place would be ideal for you?
@@OffshoreCitizen I'll definitely check it out, thanks. Currently I have residency in Serbia after getting out of Canada. Only 6 months residency requirement, not bad, I'm considering moving to Ukraine though, they have a residency program without a minimum requirement and some nice places (Kyiv, Lviv etc). But I'm planning to get a vehicle and do some exploring first before I settle on a place but I am leaning towards Ukraine, I really liked it here in Belarus where I am currently, I think East Slavia may be a good fit for me.
How does a country control that you really stayed 183 days there?
Border controls, bills, etc
Hi, do Bulgarians speak English?
Not really. My experience was quite bad, especially if we talk about older people. They never learned English in school.
Younger people did learn it in school but majority of them are still far from good. They also lack confidence to speak a foreign language.
Bulgaria may be one of the least English friendly countries in Europe from my experience.
Too close to Russia may prove to be problematic?
I don't think so but who knows. It's not directly bordering Russia or Ukraine and isn't affected much. Poland and Romania are much more exposed. My prediction would be war doesn't spread beyond Ukraine so then the outfall are refugees. But time will tell.
🇧🇬🇧🇬🇧🇬🇧🇬😍
Intersting argument "the quality of life for the cost is quite reasonable" ... really? In other words the cave you can get and the quality of stones available for the cost is very reasonable. I agree 100% if living in a cave and eating stone is what you need. Bulgaria will be great in about 50 - 100 years. Never the less interesting argument.
When did you last visit Bulgaria?
@@OffshoreCitizen Let me try to answer it differently: I would look at Romania long before I would consider Bulgaria, although neither is a Schengen Area participant.