I was hoping to work for a uk company and work from home in Bulgaria. Ive been told this is not possible due to tax laws. I will still have my uk bank account so thought i wouldnt be effected by such problems. Any information and advice would be great thanks. Marie
Working for a uk company in Bulgaria
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@Marie Lidbury I don't understand why you think that you cannot live in Bulgaria 100% and not be able to operate a UK limited company.
I live in Cyprus and operate a UK limited company so aren't they covered by the same rules?
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@Marie Lidbury Hi again. Maybe, after reading again, I might now understand. Are you trying to work for a UK company under IR35?
If so, then I suspect you might have a problem as I tried that some months ago and they needed UK bank details - if you still have that then that should be enough but do be carefull.
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@Marie Lidbury
Have a look at the following articles:
It's a complex topic, especially given that UK is not EU member anymore and doesn't have bilateral agreements (such as Switzerland).
I don't see from your post whether you are working for a UK employer or have your own company in UK. If you have your own UK company (i.e. working as Freelancer) you can setup a branch in Bulgaria or register as an employee of your UK company in Bulgaria.
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@berryd i was hoping to keep my job with my current employer but theyve said no due to tax law issues. I will still have my British bank account. Someone has put a link on here so hopefully that will assist me.
2006
Well... the tax laws don't stop you from working for a foreign employer. They just say you need to pay your taxes. :-)
Did you already buy your house in Bulgaria? And get your residence permit here? Or still mulling over one/both of these? Or thinking of using your 90 days visa-free allowance to hang out here half the year?
If you're employed in the UK, by a UK employer, but you're already a remote worker, then I don't see much of an issue:
(a) You could stay as a UK employee, if you wanted, especially as they can keep paying your salary (net of income tax) into your UK bank account, and
(b) I don't see how your UK employer would even know you were in Bulgaria instead of the UK! It all looks much the same if you talk by Zoom or do stuff via email! :-)
If you raised it with your employer, then it might not specifically be about Bulgarian tax laws. It might be an excuse, as they prefer their remote workers to be nearby, just in case they want to have a meeting in person. Or maybe they don't mind where you're based, but prefer to continue with you as a UK employee. Or it may be a UK tax issue as lots of UK companies won't pay their freelancers as self-employed, as they can't be sure that they declare it properly and pay tax. This makes the Inland Revenue very unhappy with the employer. So the employer insists on you having a personal services company instead, which you use to invoice them.
If you have such a limited company (which could be UK or Bulgaria) then you have to file accounts for it and pay taxes on its profits. A Bulgarian company costs about 350 euros to open, so it's not an expensive (or difficult) process. Even easier (and cheaper) in the UK (but UK has higher corporate taxes). So you should check with your employer what the specific issue is they have with your proposal, and whether one or both of these options would be acceptable to them.
Personally, I'd probably stay as a UK employee and keep my salary paid in the UK account, and not even tell them where I was (if I'm fully remote it shouldn't matter where I am). Or, I'd tell them about my relocation but keep keep that UK employee arrangement for a few months until they've gotten used to me being in Bulgaria, and they can see it doesn't make any difference to my work output/quality (and that I like working/living in Bulgaria and the internet is fast enough, etc.). If it doesn't cause any disruption (it shouldn't, many folks do remote working here), it would then be easier to discuss switching to paying a Bulgarian company (or a UK company if they insisted).
This is some general guidance, without knowing your specifics. It will be easier to comment when we know your BG residence status, and what your UK employer's concerns/requirements are.
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@gwynj Hi. Thanks for you response. Yeah really annoying they are being difficult. Totally agree its no different as i work remotely anyway. Ive asked Human resources to put into writing as theyve agreed it for someone else. So maybe they will have to change their mind. Im hoping to move over permanently in November. Haven't bought property as yet. Maybe ill avoid telling next employer if it comes to it.
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Are you working freelance under an umbrella company or you own limited liability company?
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Marie, do you already have Bulgarian residency obtained before Brexit? Just wondering what visa you will use to live in Bg if your boss relents or you can find a workaround on the tax issue.
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@gwynj i am in exactly the same situation. working remotely as an employee of a UK company and paying UK taxes, Im ready to buy in Bulgaria but dont have any residency etc. I have a UK bank account which i will keep but until i can sort out residency and taxes then im stuck. Ideally i would continue as an employee of a UK company and pay UK taxes BUT i want to live in Bulgaria full time so as far as im aware this is not possible. If you know otherwise any information I would be very grateful
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An interesting post i might add but would never use because i am retired.
To set up a business you will need a lichnacarte..which i have. I dont believe you can be a resident unless you have a permanent address.
But..with a residents card.and under the rules..your not affected by the time limit rules..ie 90.180 day rules as they dont stamp your passport and i show my card at the same time as my passport..and remind them not to stamp..therefore no record of when you come and go.
Because you are a resident it gives you different rights.
Next year the esta will be established
7 euros for a 3 year eu visa..nothing to worry about.
I wish you luck.
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Crickey I didn't know that we're returning to our Bulgarian house next week so bill make sure that I present our residency cards as well as our passports this time. Thanks for the information
2006
@annettewalker2
Becoming a BG resident is definitely still possible, just trickier.
Given your situation (remote worker for UK company), I'd guess the most likely are self-employed or TRO. Self-employed is possible, but it requires some Bulgarian language capability, so this might be after some time here, or after doing a language course. TRO (Trade Representative Office) represents a foreign entity, which has existed for at least 2 years. So my suggestion would be to incorporate a UK limited company, and start invoicing your employer, rather than continuing as an employee (if they'd agree, which they should as it would be less expensive for them). If you put your work through the company you will have a functioning company with accounts and tax payments, and then TRO won't be a problem. In the meantime (the 2 years), you can still buy a property and spend 6 months here each year on your visa-free allowance.
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An interesting post i might add but would never use because i am retired.To set up a business you will need a lichnacarte..which i have. I dont believe you can be a resident unless you have a permanent address.But..with a residents card.and under the rules..your not affected by the time limit rules..ie 90.180 day rules as they dont stamp your passport and i show my card at the same time as my passport..and remind them not to stamp..therefore no record of when you come and go.Because you are a resident it gives you different rights.Next year the esta will be established7 euros for a 3 year eu visa..nothing to worry about.I wish you luck.- @wtruckyboy
Can you tell me more about the esta and the 3 year EU visa you mention? Sounds interesting 😏
2006
ESTA is the US system (Electronic System for Travel Authorization). The new EU equivalent is ETIAS (European Travel Information and Authorisation System).
I think it has been delayed again, until end of 2023, I believe.
This is a system for getting a travel authorization (which is valid for 3 years, so you don't need to apply every trip). But it's NOT a visa.
Rather it's a "visa waiver scheme" like the earlier US one. So it applies to non-EU citizens whose passport grants them visa-free travel to the EU (e.g. British or USA).
Someone with a less welcome passport (e.g. Philippines or Sri Lanka) will still need a Schengen Visa (or a country-specific visa), and won't need the ETIAS.
I am not 100% on this one, but I think Brits with a residence permit issued by an EU country won't need the ETIAS.
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