We offer to all our clients the option to become Bulgarian residents as in this case there are a few advantages.
One-off Taxation of Certain Income
One-off tax is due on income received by non-resident individuals from:
- Dividends and liquidation quotas distributed by a Bulgarian resident company;
- Management and technical services fees;
- Interest, royalties, franchising and factoring fees;
- Income from hiring out movable and immovable property;
- Capital gains from disposal of real estate and financial assets;
- Certain other income.
One-off tax is due on dividends and liquidation quotas distributed to a Bulgarian resident by a non-resident entity.
EU resident individuals may declare deductible expenses and claim a corresponding refund of the one-off tax paid on a gross basis under certain conditions.
One-off tax rates:
- 0% for capital gains from disposal of shares on a regulated Bulgarian / EU / EEA market by EU / EEA residents;
- 5% for dividends and liquidation quotas;
- 7% for income from voluntary life insurance received after the termination of the insurance policy (if older than 15 years); and
- 10% for all other income.
The one-off tax rates may be reduced under an applicable tax treaty.