Hi Everyone,
I am in the U.S. and recently retired. Besides my savings/retirement accounts, my only income is from my monthly Social Security benefits. I've done a lot of research and have friends who have spent time in Bulgaria and I trust their judgement that I'd love it there. My question is providing I'm able to acquire a D- visa for residency, and able to live in Bulgaria, I'd like to know if I would be required to pay taxes in Bulgaria on my S.S. income, and if so, would anyone have any idea what the tax rate or percentage would be? This seems to be a very difficult question to get a definitive answer. Even if you don't know the answer, does anyone know who would be the best place to contact to find out? Someone suggested to me that I contact the Bulgarian Embassy in Washington D.C., but I'm not sure who I'd speak to there or if that is something they would necessarily have details on. Any ideas, or suggestions would be much appreciated, so thank you in advance! Cheers, John
Retired from U.S., would I have to pay taxes on S.S. benefits?
I have had success sending emails to the general email address of the chicago embassy (even though I never went there in person). They have been very helpful. That being said, they may not be allowed to give tax advice.
This is the Bulgarian-US tax treaty... article 17 covers pensions https://www.treasury.gov/resource-cente … 3-2007.pdf
This explanation of the treaty says that a pension is excluded as a capital gain, meaning it is exempt from the 10% income tax.
http://www.jct.gov/x-59-08.pdf
From what I understand, your pension would only be taxable in Bulgaria, but since Bulgaria does not tax pensions unless you are also actively working, you would pay taxes on it. (Not 100% sure). They were changing the laws around in 2015 to tax your pension if you are also actively employed, but not sure if that went through or not. BUT, I have read that you would have to pay health insurance taxes on it once you get your permanent residence card (after 5 years) if you want to be insured through the Bulgarian state.
Again, that is mostly speculation. Your best bet is to contact one of the many companies that do US-Bulgarian taxes or an English speaking accountant in Bulgaria.
check USA -Bulgarian Tax aggerment of 2007 Chapter 1, sec 5(a) says pension, Social security payment, Annuitys, ... are not taxed by BG, (go to the IRS Bulgarian Tax Treaty web site page 3) So if you do not work there sould have to pay no taxes and if you did I belive BG has a 10% flat tax.
No, John, we don't pay taxes in Bulgaria, it's heaven for us, you don't pay on the SS pension nor on a private pension.
And the good thing is you'll get a health coverage with it.
don't worry about what the sites say, we live here and we are retired so we can tell you
Hi John
I would suggest you to contact the embassy of the USA in Sofia. And they can advise according to the local legislation.
Goog look
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