I just want to throw out there that this is nice, but it's zero in Panama on foreign source income. The country uses the US dollar and is quite stable and modern. I used to live there, and I want to go back to that tax system as soon as I can.
“The general rule for sourcing wages and personal services income is controlled by *where the service is performed*. The residence of the recipient of the service, the place of contracting, and the time and place of payment are irrelevant.” - https://www.irs.gov/pub/int_practice_units/ftc_c_10_02_05.pd... (my emphasis)
Yeah taxes in Bulgaria are lower than the average, but not lowest for sure. Good to know about Panama.
What about social security though?
With what you save on taxes you can do that and take three months of awesome vacation a year anywhere you want and still save money over most countries.
By paying those I'm helping other people though, which is not a bad thing I guess. But I'd definitely prefer this to be more of a donation and less of a tax.
Anyway, thanks again. You got me researching about Panama this evening.
But all of that seems small in comparison to the tax break that you get. You could spend the whole summer in Europe or North America if you wanted and it would be free, including food and entertainment, and you'd still have plenty left for a medical and retirement savings account for yourself.