🏡 What European tax residency is most favourable for a remote worker / freelancer?

This video explains it all.

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It seems they are reopening ( and some are already open) the borders :grinning:

If your customers are happy to pay you in Panama, Belize… etc do it. Regarding avoiding to pay personal tax, it is legally possible if you reside (usually) 50% + 1 day in a place. Malta has remittance based taxation (although you have to declare something there), Panama, Malaysia, Philippines have territorial taxation, if you are rich you can go to Monaco :grinning:

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In Bulgaria the most favoured structure for your situation would be a local equivalent of an LLP. You could also just register as a self employed freelancer self proprietor. Your tax rate is 10% less allowances (small). accountants are plentiful but better not to find one on english language internet search as those are expensive, and not always so good. Check out Sofia or south west Bulgaria like Plovdiv, Haskovo, etc Avoid he Black sea coast.

It’s amazing US territories are listed on these lists as non compliant with US itself not signed to CRS but wants everyone bow down to its FATCA. Hypocrisy and power abuse runs a long way.

Portugal ist the place to be!
Low taxes , good health system, low costs for living, good weather, nice people …and the Golden Visa Program !
See my post here:

yes that’s why the most favoured tax advantaged location globally is now Nevada… US persecutes alll other locations and welcomes them into Nevada…Trust structure I think… and I think North Dakota before that…

How would you rate Bulgaria against Portugal based on the criteria you mentioned. “Low taxes , good health system, low costs for living, good weather, nice people …and the Golden Visa Program !” (apart from the golden visa). I’m an EU citizen so I don’t really need that.
Thanks!

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Well, if you are concerned about taxes - Bulgaria is better. Flat tax 10% on all your income… For Climate I believe Portugal is better… health system is better in Portugal… cost of living is low both cases but I believe if you like seafood Portugal is far ahead of Bulgaria. Nice people - well it depends on your attitude towards people. You can probably find good people even in North Korea… Crime and corruption are probably higher in Bulgaria… Generally speaking Bulgaria is less developed if you compare it with Portugal

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Lisbon is expensive, trust me. I cant speak for the rest of Portugal.
The health system good? Compared to what? Nice people? Not particularly, sane as everywhere there are nice and not so nice. I come across grumpy Portuguese most days of the week.

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Lisbon seems kinda pricey to me. I guess it’s relative.

It is pricey. Finding affordable ccommodation can be difficult too. Restaurants tend to be expensive, as do groceries. The only thing I notice cheaper is coffee from cafes.

Has anyone had any experience about how social security payments work under NHR?

As a remote worker for a UK business (tax resident in Portugal under NHR, paying the fixed 20% income tax) the social security payments seem to be around 11% of gross salary - in the UK, it’s more like 4% (National Insurance) once you factor in allowances and thresholds. The information from the UK Government seems to suggest you can choose to pay UK social security for up to 2 years - I’ve highlighted the relevant part - http://marker.to/eAw3DB

Does anyone have any insights on this? Obviously paying 4% would be nicer than 11%, even if only for 2 years…

I was looking at Barbados too - with the Welcome Stamp (no barbados income tax) - and a big UK law firm seemed to say you could effectively choose to keep paying UK social security tax for up to 3 years - again, I’ve highlighted the relevant part in yellow http://marker.to/g5ge9n

Anyone know?

All or most of the answers here ignore the basic definitions of PE and Tax Residency.
I think the Estonian government guide covers it pretty well.


TL/DR for those who can’t be bothered to read the articles above:

If you create a company in any country and live and operate in another country with “residence-based taxation” (pretty much every country in the developed world), that second country can automatically claim that company should pay local taxes - and you’re screwed. (because not only you need to do paperwork twice but also because you ve got to figure out complex stuff and get into trouble with local authorities)

Therefore it doesnt really “matter” if Bulgaria or Estonia have 10 or 20% tax or whatever. If you reside in, say, Spain, or Germany, or France, or Austria, or wherever (except Monaco - if you have a million euros handy to stay there) then these countries could theoretically

  • ask and and get information from Estonia about the company
  • see your incoming bank transfers to your local bank account and ask where it’s coming from (your salary or your dividents)

Practically, how likely is this to happen? I honestly don’t know. The question is, are you curious to find out?

So, what do you do instead? Well, if you think you can live permanently and operate from one of these low tax rate countries, by all means do it.

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No. That is the maximum rate. One can pay the minimum rate applicable to your activity. Now there is even a 90€ / month flat for newcomers in the Social Security systems as a freelancer.

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