Bank Account Interest Rates

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scot47
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Bank Account Interest Rates

Postby scot47 » Mon Feb 16, 2009 9:42 am

I see that DSK is offering 8.5 percent interest on Leva and 6.5 percent on Euros. (Minimum deposit 1000 Leva) First Investment is offering 9.5 percent on leva. (No minimum)
Last edited by scot47 on Mon Feb 16, 2009 10:28 am, edited 1 time in total.

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Postby leedarkwood » Mon Feb 16, 2009 10:11 am

I was quite happy with my savings in the UK, since I was getting 5% and had enough tax allowance there that this was tax free. Right now of course I am getting an excellent allowance on sod all interest! But if I move it to BG, I have to take the perceived 'hit' of the lousy exchange rate, and then I will be taxed on practically all of it I think? What is the tax rate on savings here and when does it kick in?

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Postby Moodyblue » Mon Feb 16, 2009 11:00 am

It is my understanding that interest paid from personal savings account in BG banks is not subject to income tax. However, there was talk some time ago that this should change because it is against the EU Savings Tax Directive, so I don't know if this is still true.

Are there any tax specialists out there that can give a definitive answer on this??

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Postby leedarkwood » Mon Feb 16, 2009 11:03 am

well that would put a different complexion on it, we are going to see our accountant in the next few days I will ask.

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Postby scot47 » Mon Feb 16, 2009 11:04 am

For BG residents interest on savings is not taxable.
Last edited by scot47 on Fri Jun 18, 2010 7:25 pm, edited 1 time in total.

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Postby targobnb » Mon Feb 16, 2009 12:17 pm

Confirmed, I just opened an account 2 weeks ago, BGN account 9% per annum tax free interest

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Postby blodwin » Mon Feb 16, 2009 12:18 pm

There is no tax payable for Bulgarian residents on savings. However if you havent got residency then the tax is 10%. I found this out when the bank made a mistake and charged me interest on my interest they however remidied the situation as soon as I pointed out their mistake

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Postby BulgariaDiary » Mon Feb 16, 2009 12:20 pm

One thing you need to take into consideration when going into these high interest accounts is the exchange rate which fluctuates constantly.

If you are exchanging currency to go into this type account and should you be going in with a view to exchanging currency back at any time then try to go in when the rates are in your favour. This gives you a better chance when exchanging back. Get the right rate at the time you exchange back and you could earn even more than the interest rates, but that’s the gamble.

Of course if you don’t ever expect to change back this does not apply but just for example the exchange rate for sterling today is 2.184 BGN so £1000 equals 2,184 BGN should the rate go to what they were 9th December 1.00 GBP = 2.251 BGN and you needed to change back to sterling you would only get back £970.00 less commission you would be charged on that exchange.

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Postby leedarkwood » Mon Feb 16, 2009 12:23 pm

Am I back to asking if the LTRC counts as residency? Or is this only if you have been here five years?

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Postby targobnb » Mon Feb 16, 2009 4:20 pm

I opened my acount with an english speaking bank manager and i did ask the question of tax, she was adement it was 0, I opened the account using my GB passport as I have only Long term residency permit. No Lichna Carte .hope this helps


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