Capital gain tax on stock market in

For Italians (and any EU citizens) all EU countries are fairly straightforward. But Bulgaria is probably the easiest. To complete immigration formalities and get a residence permit you need proof of BG address (LT rental contract or property deed), proof of health insurance (EHIC card, or private BG policy for 100 euros), proof of funds (credit card and/or few thousand in BG account).

Bulgaria has low rate of tax, 10% flat rate, income and capital gains, for personal and corporate. It's one of the lowest in EU. Ireland similar, I think, but property (and general cost of living) is cheaper here, and the weather is better. BG corporations cheap to start and run if you want to do business throughout EU. Bulgaria is good travel base too, with plenty of cheap flights from Sofia to other EU countries. Also excellent comms with high-speed internet and good mobile coverage, so good for online trading, remote working, zoom conferencing, and YouTube fluff. IMHO, highly recommended!

Wow, very good news. Are you sure Ireland has loser taxes on capital gains? I think that Belgium and Bulgaria are the best. Do you think that handling the residence documents can be done by myself or is it better to hire a professional in Sofia? Thank you for your help, I see you are very active in this forum.

Ireland a bit higher, I think 12.5% headline tax rate, personal rates a bit higher. But has some very flexible rules that gives a very low effective tax rate for corporations (hence Google, etc.). Cyprus personal rates also higher, but I think it has exemptions for capital gains and dividends. Belgium has 25%+ income tax rates, but you may be correct that there is a capital gains exemption. If I recall correctly, Czech Republic, Serbia (non-EU), might be pretty low 15% or so.

Bulgaria is the lowest rate that applies across the board. But the 10% applies to capital gains too. There may be a few countries with more generous treatment of capital gains (or dividends) specifically.

Bulgaria's appeal is that it has the lowest headline rate, coupled with relatively low property costs (buying/holding/renting), and the lowest cost of living in the EU. Plus it's a pretty country and nice place to hang out.

I think being in the EU is a big advantage, but you may not value it as highly. You can get even lower (0 ish?) tax rates in Andorra, Monaco, say, but these "havens" are much more expensive to live in.

If you read the immigration requirements and follow the instructions, you should be able to do it yourself. But I'd recommend paying for a translator, at least. But you'll need to buy or rent a property first so you have the deed/contract as your proof of address.

Attorneys are more expensive, but they are the quickest/easiest. My attorney (in Plovdiv) charges, I think, 1,000 euros for EU citizens, and it only takes 2 business days (application & biometrics on first day, 5 years residence permit comes out on 2nd day). He included my rental contact too, so I didn't have to rent/buy anywhere until later.

gwynj, you appear very well informed about starting life and business in BG Have you been long in this country? Are you Welsh?
Annie

Greetings @antobon2000 and welcome to the expat.com forum. And, of course, welcome back to Bulgaria!

And as Sting (almost) sings... Oh, I'm an alien, I'm a legal alien... I'm a Welsh-y-man in Plov-Div. :-)

Tgank you!

Hello, just wondering, is it the case that there is a tax exemption on capital gains from the sale of securities?  I think it relates to trading shares on EU platforms.  Any idea if this would also work if trading on non EU platforms (HK stock exchange for example)?

@gwynj Plovdiv as a great airport as well. Not so many flights but its great. No airport stress at all and nice staff.

@Bamboozler Yes, the capital gains from transactions with shares listed on regulated EU/EEA markets are exempt from capital gains for individuals. In addition, capital gains from transactions with shares listed on markets considered as equivalent according to directive 2014/65/EU such as NYSE/NASDAQ/CBOE in the US are exempt for companies. Please note that CFDs or ETFs don't fall under this category.

See https://taxsummaries.pwc.com/bulgaria/i … ermination

@euronomad

Here's PwC on Bulgarian tax:

"Exempt income

Some types of non-taxable income are listed below, subject to specific conditions and requirements set in the law:

• Capital gains realised by Bulgarian tax residents and residents of EU/EEA member states on disposal of one residential real estate property per year if it was in the possession of the individual for more than three years and up to two other real estate properties if they were in the possession of the individual for more than five years.
• Capital gains from transactions with securities of public companies on the Bulgarian Stock Exchange or on a regulated securities market in EU/EEA countries."

@euronomad thanks for this. So holding stocks on HKSE would not qualify in this case I guess?

@gwynj thanks for sharing.  I'll look into this further.

@Bamboozler HKSE is considered equivalent under Mifid II (as well as the major US and Australian markets) AFAIK but only for corporate income. That means you would have to do your trading either via a company or as a registered sole trader (with additional setup, accounting and social security contribution costs). I guess the law has to be amended for individual income as well in the future in order to be compliant with EU regulations. However, finding a knowledgeable accountant here in Bulgaria is another challenge. I have tried to find one without success so far. All my meetings ended up with me explaining them the Bulgarian tax law since this is a relatively new law amendment and they are not familiar with it. The problem is that if they don't know how to fill out the declaration properly your profits won't be excluded and you will end up paying the 10 or 15% without being able to hold them liable. Maybe the best solution is to hire a tax lawyer in addition and let him check the declaration before submitting it.

@ikbenrijkaangoud

Well spotted. It's small, but it has several low-cost options from Ryanair and WIzzair.

Hi @euronomad,

I day trade US stocks, ETFs and futures on major US exchanges. I'm thinking of relocating to BG. So I am an individual trader trading for a living. Is my total tax on these short term trades 10% ?  or is there an additional social security cost on top?  I'm obviously trying to min my tax cost, but want to remain legal. Also, do I have to report every transaction, or is monthly statement of net proceeds enough to calculate the tax. Also, are commissions to by and sell counted as cost of the trade for these day trades? are any other cost like computer, internet connection treated as an expense?  and finally what form would I do and can you suggest an accountant that prepare and file (would need to speak english, as I don't speak Bulgarian). thank you in advance...

Hi guys, did you figure out what the exact law is here? I am trading US options and stocks on Interactive Brokers and was wondering if it can be as well tax exempt.

Thank you,