Massive & Overlooked Benefits of Residency in Bulgaria 🇧🇬

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2 жыл бұрын

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More and more digital nomads and entrepreneurs are choosing Bulgaria as their home base. Bulgaria has always been attractive among these types of people, and the popularity is just increasing.
Why should you consider setting up a residency in Bulgaria? There are many, many reasons for doing so, but today I will cover some massive and sometimes overlooked benefits of setting up a Bulgarian residency.
Today we will cover how to use Bulgaria as a part of your global residency strategy.
As you probably already know Bulgaria offers quite low taxes, among the lowest in the EU. Both corporate and personal tax rate is 10%, and there is 5% tax on dividends and If you structure yourself properly you will be able to pay only 7,5% in tax.
This is quite reasonable for most people.
Another massive advantage of Bulgaria is the low cost of living. Your money will go quite far, and you will get a good bang for the buck in here.
The third and certainly most overlooked thing, which is very important for people like us, is that there are no minimum stay requirements in order to maintain your residency.
Most other EU countries (unless you apply for Golden Visa) will require you to spend some time in the country. Some will require that you spent at least 6 months every year there. This is quite inconvenient and makes things complicated for someone who travels a lot.
As you can see, there are many advantages of getting a residency in Bulgaria. It's fast and convenient (especially if you're an EU citizen), it is a cheap place to live, well connected by air.
If you're thinking about getting multiple residencies around the world, you should definitely include Bulgaria as one of the places where you're going to plant some flags.
Who are we and what do we do?
We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
We have lots of interesting articles on different topics, we have relevant information up to date.
Author: Michael Rosmer
Feel free to join our community!
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Пікірлер: 117

@MarkNeal1 2 жыл бұрын

Excellent, informative vid - thanks.

@OffshoreCitizen 2 жыл бұрын

You're welcome, Mark. Happy to be of service ☺ Anything you'd like to see next?

@williamtaudien 2 жыл бұрын

Thanks for your great information!

@OffshoreCitizen 2 жыл бұрын

You're welcome! Anything else you'd like to see?

@williamtaudien 2 жыл бұрын

@@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.

@pauljeanrony5075 Жыл бұрын

Thx you bro ...love your video

@ianarmstrong3624 2 жыл бұрын

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.

@Vvermont 2 жыл бұрын

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

@Yasin_Affandi 2 жыл бұрын

Thanks for this wonderful video. D low cost of living in Bulgaria is a big plus.

@OffshoreCitizen 2 жыл бұрын

You're welcome!☺

@Yasin_Affandi 2 жыл бұрын

@@OffshoreCitizen 😀

@torontovoice1 2 жыл бұрын

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

@OffshoreCitizen 2 жыл бұрын

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.

@tomvilera6313 2 жыл бұрын

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?

@guusgeluk3693 2 жыл бұрын

This sounds perfect as a european citizen! This means I can pay bulgarian low tax and travel freely trough eu

@noamwolfson935 2 жыл бұрын

Great thoughts

@OffshoreCitizen 2 жыл бұрын

Thank you, Noam! Anything you'd like to see next?

@noamwolfson935 2 жыл бұрын

@@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!

@cristinelprisacaru7932 2 жыл бұрын

Sound pretty good to me

@mattfisher8090 2 жыл бұрын

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 2 жыл бұрын

I believe I have it relates to how their quasi territorial remittance based system works combined with their corporate residency rules

@soundslight7754 2 жыл бұрын

Great information. Thanks a lot. How does BUL compare with Georgia? I think the scale tilts slightly towards GE

@OffshoreCitizen 2 жыл бұрын

Have you checked this video kzfaq.info/get/bejne/hLJjnqSbxpexoIk.html out?

@christopher6752 2 жыл бұрын

What do you think about Panama since they changed their friendly nations visa

@wa7john 2 жыл бұрын

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

@tinglestingles 2 жыл бұрын

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?

@rohanindurkar6466 2 жыл бұрын

Can you please explain lump sum tax in Switzerland

@cristinelprisacaru7932 2 жыл бұрын

For businesses with under 1mil you can chose to pay 1% from turnover corporation tax 5% Romania

@RiosTikvic 2 жыл бұрын

we live in Penticton BC Canada and in this pendemic we are retire to Bulgaria.

@tinglestingles 2 жыл бұрын

So, we rent or buy 'something' in Bulgaria, show it is the centre of our world , register in Bulgaria - job done! Renewal annually?

@dr.honorable141 2 жыл бұрын

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 2 жыл бұрын

Correct, you can NOT travel with Bulgarian ID card as a foreigner. The card is temporary document and is not meant for travel.

@dr.honorable141 2 жыл бұрын

@@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 ...

@Misanti888 2 жыл бұрын

@@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 2 жыл бұрын

Bulgarian citizens, has freedom of movement in the Schengen zones. Check it out. I could be wrong.

@camilmoujaber4813 2 жыл бұрын

@@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.

@TheOrangeGunner 2 жыл бұрын

You mentioned 10% cit and 5% divi tax. But a 7% overall taxation. How would that work?

@alexnezhynsky9707 2 жыл бұрын

He talks about it in another video. Search for "International tax planning for Bulgarians"

@heshamabdel-ghany4716 2 жыл бұрын

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?

@OffshoreCitizen 2 жыл бұрын

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

@tamaragrottker7677 2 жыл бұрын

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?

@FXPhysics 2 жыл бұрын

Hi Michael. Are there some private clinics/hospitals available over there, meaning out of the public health system?

@lkm2287 2 жыл бұрын

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.

@sylwia4561 2 жыл бұрын

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.

@mrlds3202 2 жыл бұрын

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 2 жыл бұрын

Check this video out kzfaq.info/get/bejne/kMV9qM9y3JrUlqc.html What place would be ideal for you?

@mrlds3202 2 жыл бұрын

@@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.

@johnmarriott6998 Жыл бұрын

National insurance costs aren't mentioned which look very high

@gauravpatil1867 11 ай бұрын

will bulgeria citizenship will allow me live anywhere in Europe?

@jonathanwoodvincent 2 жыл бұрын

the air quality in cities in Eastern Europe, Georgia, Turkey, etc has worried me a bit. any thoughts on that?

@alexnezhynsky9707 2 жыл бұрын

Also water quality and occasional blackouts. But it's manageable from what I gather

@OffshoreCitizen 2 жыл бұрын

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.

@jonathanwoodvincent 2 жыл бұрын

@@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.

@Tommy-oj4hd 2 жыл бұрын

@@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.

@lerryperry 2 жыл бұрын

Michael, are there any international banks that will refuse to do business with people who are tax residents and/or citizens of Bulgaria?

@tw9419 2 жыл бұрын

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

@namenl2205 2 жыл бұрын

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

@namenl2205 2 жыл бұрын

Oh I work fully remote for a US based company

@OffshoreCitizen 2 жыл бұрын

From a Bulgarian perspective yes, the biggest thing is cleanly getting out of Netherlands

@alwayslearning7672 2 жыл бұрын

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 2 жыл бұрын

We've made many videos on Bulgaria. Have you watched some of them?

@alwayslearning7672 2 жыл бұрын

@@OffshoreCitizen On it ,thanks!

@tinglestingles 2 жыл бұрын

I've heard Plovdiv is better than Sofia - but do not know why? Any thoughts?

@ericyuan9718 2 жыл бұрын

Sofia is drab and depressing while Plovdiv earned itself a European culture award

@hanumanji20 2 жыл бұрын

It’s laid back

@OffshoreCitizen 2 жыл бұрын

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.

@kosmicheskiprah 2 жыл бұрын

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.

@tinglestingles 2 жыл бұрын

@@kosmicheskiprah very good! thanks for the info.

@shaneoconnor1407 2 жыл бұрын

What has been your experience about safety and comfort living in Sofia?

@mariyaanyova2083 2 жыл бұрын

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.

@gn2650 Жыл бұрын

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?

@OffshoreCitizen Жыл бұрын

Depends from what angle you're looking, generally no but we have to caveat that.

@jhgfghjfuzrtfchchghgf 2 жыл бұрын

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!

@carlwereld5131 2 жыл бұрын

I notice that to I can nowhere find what he said about tax resident 1 day stay I am also intersted

@bulgaro1221 2 жыл бұрын

🇧🇬🇧🇬🇧🇬🇧🇬😍

@RiosTikvic 2 жыл бұрын

we are planning to retire to Bulgaria next year.

@OffshoreCitizen 2 жыл бұрын

Nice! How did you decide on Bulgaria?

@RiosTikvic 2 жыл бұрын

@@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.

@tw9419 2 жыл бұрын

@@RiosTikvic How did you choose Bulgaria over Croatia?

@RiosTikvic 2 жыл бұрын

@@tw9419 Croatian government is corrupt

@dr.4453 10 ай бұрын

Is the part about 90 days minimum stay for tax residency still true?

@OffshoreCitizen 10 ай бұрын

Please check out our videos on tax residency myths, 183 days myth It's a very misunderstood topic

@dr.4453 10 ай бұрын

@@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)

@johnbutt6912 2 жыл бұрын

Can you then travel the rest of Europe freely?

@azizsiddique1937 2 жыл бұрын

Nope, you have to either be an EU citizen to travel freely or Bulgaria have to enter the Schengen (borderless territory) to use it's permit to travel freely. But of corse you have to apply for visa if you are a Non-EU national

@nIrUbU01 2 жыл бұрын

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?

@Adamatere 2 жыл бұрын

search "tax residency certificate bulgaria", and a permenant apartment is enough.

@tw9419 2 жыл бұрын

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.

@charlesmassaquoi4040 2 жыл бұрын

Did you apply for residency yourself, or did you get Immigration Agent to assist you.

@OffshoreCitizen 2 жыл бұрын

I've done both. I wouldn't recommend doing it yourself the first time, English is poor in these offices

@peterchirico2153 2 жыл бұрын

How is the Safety issue there ? Sofia and countryside.

@OffshoreCitizen 2 жыл бұрын

It’s quite safe, no worries about that.

@hanumanji20 2 жыл бұрын

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

@AlisonWonderland999 2 жыл бұрын

@@hanumanji20 Everyone's always missing a lighter after a night like that 😋😋🤣🤣😎😎

@davidk467 2 жыл бұрын

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.

@OffshoreCitizen 2 жыл бұрын

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.

@evanserickson 2 жыл бұрын

@@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?

@Tommy-oj4hd 2 жыл бұрын

@@OffshoreCitizen Filling taxes is not always equal to paying taxes. Please find the: Foreign Earned Income Exclusion

@alexgray1905 2 жыл бұрын

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 2 жыл бұрын

When did you last visit Bulgaria?

@alexgray1905 2 жыл бұрын

@@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.

@christine8865 2 жыл бұрын

How many months requirement to stay outside bulgaria as a temporary resident in bulgaria per year ?

@OffshoreCitizen 2 жыл бұрын

What do you mean?

@casadehusker 2 жыл бұрын

If you have a Temp Resident card you don't need to leave the country.

@tw9419 2 жыл бұрын

You can stay in Bulgaria the whole time

@joaquinvelazquez4710 2 жыл бұрын

Would you rank Bulgaria higher than Porutgal?

@trapdozz451 2 жыл бұрын

ahhaahah

@bamboozle999 2 жыл бұрын

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.

@artjomaltenhof9691 Жыл бұрын

How does a country control that you really stayed 183 days there?

@OffshoreCitizen Жыл бұрын

Border controls, bills, etc

@joan5631 2 жыл бұрын

Too close to Russia may prove to be problematic?

@OffshoreCitizen 2 жыл бұрын

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.

@Febrinasvlogs 2 жыл бұрын

Hi, do Bulgarians speak English?

@tw9419 2 жыл бұрын

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.