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Working for a uk company in Bulgaria

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Marie Lidbury
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
berryd
@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?
berryd
@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.
euronomad

@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.

Marie Lidbury

@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.

gwynj
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.
Marie Lidbury

@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.

berryd
Are you working freelance under an umbrella company or you own limited liability company?
janemulberry
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.
annettewalker2

@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

wtruckyboy
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.
kaththomas2017
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
gwynj
@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.
Snorrbitz
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.
- @wtruckyboy

Can you tell me more about the esta and the 3 year EU visa you mention? Sounds interesting 😏
gwynj
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.

Chloeholmes81

@gwynj hi,


i work remotely but im part of customer service team so its over the phone doing calls with cistomers through a laptop & the +0333 number is through that laptop, do you think the calls would still work and all as my laptop would be in a different country? as im trying to hid it from mt employer as it would be an excuse for them to not want me in a diff country however im fully remote i do not require ro ever go into the office


pls advise x

roywebb58

subscribe to a private VPN which you can use to hide your computer location

cyberescue1

@Chloeholmes81 Hi Chloe,

I'm not 100% sure, but I have network knowledge, so my thoughts are the following...

When someone calls the 0333 number it's first routed from their number, through a UK land-line exchange, this then would be re-routed to a server, to connect with the software you are using on your computer / laptop.  So my guess is, yes it will work.   However, you may need a VPN (Virtual Private Network) set to the UK, for it to work.  The VPN would also make it seem like you're in the UK, should your employer check on you.

As I say, I'm not 100% sure this will work.    Have you used your laptop and the 0333 number in different locations in the UK??

If so, you should have found that works okay, as 0333 numbers are not geographical, instead they are merely treated as landlines.


Are you able to take a few days off and go and test it outside of the UK?  Or, could you say to your employer, you wish to work, whilst you're on leave and will my 0333 number work whilst I'm visiting my seriously ill granny in Bulgaria?


Ian

janemulberry

Complicated. I can see how good it would be if it worked. And I can see some possible problems.


You would need to test it, and that would be challenging to do without your employers knowing or risking their system showing you weren't available for calls when you should have been if it doesn't work.  As others have suggested, use a VPN to be sure, otherwise it will be obvious from your IP address that you aren't in the UK.


You'd also need to keep a UK house address for your bank account, so you can get paid, and set up a different account like a WISE account to use overseas. Many UK banks will ask you to close the account if they detect all the transactions are happening overseas.


You need to know whether the employer will see additional phone line charges on the calls being redirected to you, like we are if we call a UK mobile phone when someone is roaming abroad. And think about how you will access the internet to receive the calls. The UK mobile companies can set limits on the data you can access while using your account abroad and stop you using it abroad at all if they see the bulk of your calls and data are being done overseas.


The biggest issue I see here is a potential legal one. I am not a lawyer, but I have had to understand a bit about data protection law for previous jobs. It could be that due to the Data Protection Act and GDPR (laws governing how personal data is handled) customer information can't be transfered outside the UK, which would obviously be happening if you're dealing with calls from Bulgaria. You may be wise to check what the Privacy Policy for the business you work for says about where data is handled. If it mentions that their data may be handled outside the UK, you're probably safe from any risk of legal action. But if the company tells customers that their personal data will never leave the UK, call handling from abroad without your employers consent could have serious repercussions for you if it's found out. Not just getting the sack but the risk of prosecution. OTOH, I doubt that data protection breaches are something someone would be extradited for it they live abroad.


I suspect this might be why your employer may not be receptive to calls going overseas.  Is there any way you could safely ask about the possibility of working overseas first? Better, get a colleague who has no intention of travelling to ask for you.

CarlS1986

Like others have said, its possible, and you can cover your tracks a bit with a VPN, but if they look into it properly using a tech guy who knows what they are doing they will realise you are using a VPN and request you stop using it, resulting in you needing to not use a VPN and giving away your location.

The company most likely will use a Tunnel/VPN built into their software that will protect them from data breaches, as Jane has highlighted GDPR.


The next issue is if you are found out your working abroad there are a lot of tax implications for both countries, I'm no lawyer, but I briefly looked into this and the best way about it is working for a company who allow this as their tax department will have it all setup to pay you and the local government the correct monies.


My advice is ask before jumping in as you may find yourself without a job due to breach of your companies' policy, also if you get a chance you can try logging into the system when over BG for a short break.

janemulberry

I don't think there'd necessarily be income tax implications in this case, as I believe the UK has a 100% tax treaty with Bulgaria and other EU countries, so as long as tax is paid in the UK it should still work for someone paying tax as if they live in the UK while living abroad.


But national insurance will almost certainly be an issue, as the Bulgarian authorities are likely to want someone of working age to pay into their system, and then that gets into having to either pay twice, as it will be automatically deducted from their UK pay. The way around that would be registering as unemployed in Bulgaria to pay the minimum contribution there, but it's getting more and more layers of complexity.

gwynj

@Chloeholmes81


FINANCIAL

Bulgaria is a great location to be a remote worker, as it has great internet connectivity, and you'll benefit from low local living (and property) costs, while enjoying a high foreign salary. There's not even a large time difference to worry about.


TECHNICAL

I'd guess the 0333 number is a UK virtual number that redirects via the appropriate app wherever you are in the world (as long as you have an internet connection and log in as an available call agent). But they also forward to phone numbers (your landline or mobile number). My guess is that it's the former, and it should work in Bulgaria too.


EMPLOYER

I'd personally not like to relocate on the QT, if it was a job/employer I wanted to keep. At the very least, I'd re-read my employment contract and see whether it does specify "fully remote", and whether it mentions location/country. I'd prefer to tell them that I am considering relocating to another country, and confirm that they're fine with it, and that their forwarding works internationally.


VISAS

You can visit Bulgaria visa-free for up to 90 days in 180. This is 6 months per year (but not in one chunk). This is an easy option in order to see if you like Bulgaria, and whether your call app works fine when you're here. To stay longer  (or live here indefinitely), you'd need a D visa and residence permit. There's no option for remote workers/Digital Nomads, and the employee/self-employed options don't apply in your case. You probably have to go the TRO route, which is one of the more complex/expensive option.


LEGAL/TAX/SOCIAL SECURITY

Providing you address the immigration restrictions, my personal view is that nobody would much care if you are an employee of a UK company and paying income tax and NI there, while living in Bulgaria (or visiting for a few months). Indeed, as UK pensions are much better than Bulgarian pensions, this might be the sensible option. It's probably not the ideal long-term solution, but for a few months/years, I doubt it's a big deal. If you're not an employee of a Bulgarian company, or self-employed in Bulgaria, then you're unemployed from a Bulgarian perspective and (one day) you could contribute to their social security system on this basis.


Long-term, you might find it's better to be an independent contractor and invoice your employer. You can do this via your own Bulgarian company (or perhaps your own UK company, if you're working towards a TRO) or declare yourself self-employed in Bulgaria.

kikkoman tokyo

@cyberescue1

bringing in my experience with skype, no matter where you are, incoming calls are akways routed in.

using the vpn might mitigate.

a total different approach when your ip is checked, could still be from uk, but seen as natted, and would arise the question why, pinpointing you to be abroad as first thought.

in order to be 1000 % under the radar you should create your own vpn using opdn vpn linux and a adsl. at that point there would no way to be found out...😄

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