WHO WE ARE
SHORTLY ABOUT INNOVIRES
We understand the diverse legal, business and financial issues our clients face and we immerse ourselves in their businesses and positions so that we can anticipate and mitigate risks and challenges that they may face. Getting the best result means having a team with proven results and the detailed knowledge to draw your tax plan.
To prove our words, we stay behind our achievements. We have obtained more than 30 tax residency certificates for the last 2 years. There is no other company in Bulgaria with such a result.
For more information about us and our full list of services, you can check our main page here – www.innovires.com
WHY CHANGING YOUR TAX RESIDENCE TO BULGARIA?
Bulgaria – a heaven in the European tax system
Lowest taxes in Europe
We’ll let the facts speak for itself:
- Corporate tax: 10% (the average corporate tax rate in Europe is 25%)
- Personal income tax: 10% (the average personal income tax rate in Europe is 40%)
- Dividend tax: 5% (0% when the European parent/subsidiary directive applies)
To make it even better, the Bulgarian tax law, recognize up to 40% expenses of the freelancers (natural persons) without any kind of a proof.
» In Bulgaria, both businesses and citizens have a flat tax rate of 10%. It doesn’t matter how much you earn or what you do, whether they are capital gains, royalties, dividends, rental income or anything else, you pay 10% tax and that’s it. No hidden taxes no hidden obligations!
Bulgaria has a safe bank system
and what is more important – friendly tax authoritiesExamples
Corporate and dividend tax
Mr. John Smith has a company in Bulgaria and his company profit for the previous year is 100 000 EUR. In this case, he company will need to pay 10 000 corporate tax to the BG government. His net profit is 90 000 EUR. If Mr. Smith wants to distribute dividends he will need to pay 5 % more on the net profit or 4 500 EUR. That’s all. Nothing more.Freelancer receiving royalties
Mr. John Smith is a freelancer and tax resident in Bulgaria. The previous year he receives 10 000 EUR as royalties. As BG law recognize 40 percent expenses, the personal tax of 10% will be calculated on 6000 EUR or it will be 600 EUR. In this case the personal tax can be lowered even to 6%.Becoming a Bulgarian tax (fiscal) resident is the best protection from EU Anti-Tax Avoidance Directive 2016/1164
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The personal tax in Bulgaria is only a 10% flat rate compared to:
| Sweden | 61.85 |
| Denmark | 55.80 |
| Austria | 55.00 |
| Belgium | 53.70 |
| Netherlands | 52.00 |
| Finland | 51.60 |
| Luxembourg | 48.78 |
| Portugal | 48.00 |
| Germany | 47.50 |
| France | 45.00 |
| Greece | 45.00 |
| Spain | 45.00 |
| United Kingdom | 45.00 |
| Italy | 43.00 |
| Switzerland | 40.00 |
Under EU rules, you can be subject to only 1 country’s social security laws at a time – so you must pay your social security contributions in that country only. Why not choose Bulgaria for that reason? Bulgaria has one of the lowest social contributions fees.
You can be fully social secured for around 70 EUR/month with the state insurance.
There is also an option for private insurance. Taking out private health insurance that includes coverage for the whole of Europe with coverage of 60.000 EUR costs around €100 per year for those who are middle age.
Once you a holder of a residency card, you will be also able to obtain a European Health Insurance card in a few days.
IMPORTANT NOTICE
Keep in mind that, EU rules coordinate national systems to make sure people moving to another EU country do not lose their social security cover (for example pension rights and healthcare) and always know which national laws apply to them.WHAT WE DO AND HOW WE DO IT
learn exactly the steps needed in order to be in possession of Bulgarian tax residency
The EU law states that you can be citizen of one EU country but a tax resident and payer of other EU country. Why not reducing and optimization your taxation through Bulgaria?
According to the Bulgarian law, the income of the Bulgarian residents (not citizens) from the entire world, earned in the country or abroad are taxed only in Bulgaria.
The criteria for individuals to be considered a tax resident in Bulgaria and to obtain a tax residency certificate are:
- having a permanent address in Bulgaria, or
- residing in the territory of Bulgaria for more than 183 days in each twelve month period, or
- residing abroad on assignment of the Bulgarian State, its authorities and/or its organizations, or Bulgarian enterprise, and also the members of his/her family,
- or having his/her centre of vital interests in Bulgaria.
The first step of obtaining a certificate of tax residency
Having a Bulgarian residency card.This card proves and presumes that you have been in Bulgaria more than 183 days. For the purposes of the issuance of the card, it is not needed to present any proofs that you have been the residential for the period.
The legal grounds to obtain a Bulgarian long-term residency card as EU citizen are:
You can learn more about it here →
Tax Residency requires the applicant to have some connection with the country and such connection is established by setting up a Bulgarian company or working as a freelancer for which options we had developed several different options for legal assistance.
Option #1
Being a freelancer without having a Bulgarian company.For this purpose, some specific requirements need to be met in order to be able to be registered as a freelancer in Bulgaria. Our law allows an EU citizen to become a tax resident and obtain fiscal certificate without having a Bulgarian company. In this case, we offer you being a freelancer or being a Bulgarian employee on the ground of labor contract.
Option #2
Being an owner and manager of a Bulgarian companyIn this case, you will need to set up a Bulgarian legal entity in which you are the owner and shareholder. We can assist you in the incorporation process and the administration of the company. For more information, you can visit our company incorporation page here.
In both cases – company or freelancer, you will have to get a Bulgarian residency permit – ID card.
Important! The residency card does not mean you are a tax resident of Bulgaria but that you are residing in the country. The document that proofs you are a tax resident is a TAX (FISCAL) RESIDENCY CERTIFICATE.
Once all the abovementioned steps are taken, the final stage is obtaining the Bulgarian tax residency certificate which will make you a payer of taxes in BG.
Our practice and extensive experience has showed us which is the easiest way to prove that your vital interests are in Bulgaria.
Our service is unique and include all the stages and all the requirements in order to take the Bulgarian tax residency certificate. We are specialized in proving to the authorities that your vital and economic interest are in Bulgaria.#1
Innovires has obtained a tax certificate of Polish citizen and client only for few months!#2
Innovires has managed to find a way to get tax certificate for an Italian and for a Greek clients along with a recognition from their local authorities.#3
Innovires has successfully obtained a residency card and fiscal residency certificate of a Swedish citizen. He is now able to buy a house and a car plus open a bank account on the ground of the BG residency.OUR TEAM
THERE IS A BIG PICTURE AND WE SEE IT!
WE LOVE SHARING OUR KNOWLEDGE
Visit Our Office
We love to answer questions. You can contact us through the phone at +359 88 709 0893 or send us an email at office@innovires.com.
Optimize your tax today
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