Paying tax should be framed as a glorious civic duty worthy of gratitude – not a punishment for making money.
Alain de Botton
Bulgaria is the absolute forerunner in the EU in terms of low and simplified taxation. Since many years, the country has been applying extremely transparent and favorable tax regime for both personal and corporate tax. Individuals and corporations are equally taxed at 10% flat on their profits. Nowhere else in the EU (and almost nowhere in the world, with exception of the controversial offshore centers) are the tax regulations neither as simplified nor is the tax rate as low as is in Bulgaria.
Many companies and tax conscious individuals are relocating to Bulgaria in order to optimize their tax status. They are also benefiting from the numerous exceptions provided in the Bulgarian tax codes that allow different types of income to be completely tax exempt. For instance, personal income from trading of shares or cashing of bond coupons, are completely tax free in Bulgaria.
Another unique advantage of the Bulgarian tax legislation is the exemption regime for inheritance taxes. Many Bulgarian citizenship applicants are saving millions by changing their citizenship status and are then applying the Bulgarian tax and inheritance regulations to avoid parting with huge chunk of their inheritance.
Many wealthy EU citizens are also enquiring about the possibility to obtain Bulgarian citizenship. The point of it is obviously not to gain access to the EU, but to optimise and simplify their tax status. Please contact us for more information about this option or go straight to Euroformat.eu for more details.