Are you considering to obtain tax-residency in Bulgaria in order to enjoy the lowest 10% tax rate in the EU? Or you have doubts whether you may need to pay taxes in Bulgaria, even-though you are not living 183+ days in the country? Then please be sure to read this very comprehensive article.
Taxation in Bulgaria is very low compared to our jurisdictions – only 10% for both private individuals and corporate entities. Bulgaria has also signed a large number of double-tax avoidance treaties that will enable you to stop paying taxes elsewhere if you qualify to become tax resident in Bulgaria.
At the same time, Bulgaria is becoming stricter by the day in its effort to stop any form of tax evasion. International tax sharing agreements and disclosures protocols (FATCA, CRS, etc.) are now the norm, so legal compliance in tax matters is a must.