Becoming self-employed - tax?

by Eddie

I am thinking of moving to Bolivia and supporting myself by working as a freelance translator through the internet. The company I am currently working with in Sweden (where I live now) is more than happy to work with me in this way. My question is, then: what rules exist in Bolivia for this kind of work? Do I have to register as a business or is there a simpler way? I know it would be very easy to just let the money turn up in my bank and not tell anyone about it, but this has to be completely legal. So what should I do and how much tax can I expect to pay on my income?

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Nov 02, 2009
setting up
by: Bella

Hey Eddie
I just noticed your post here in our forum. I sent you an email with details about this yesterday. Now that I know you are working with a Swedish company, the question would be whether or not setting up a company here means you will pay taxes on your income from Sweden both in Sweden and here in Bolivia. You don't want to pay taxes twice.

On the other hand, you cannot live and work here unless you either have a work contract with a company established in Bolivia or you set up your own company. So you would have to register a company here.

However, if you chose not to declare your income from Sweden here (because you are paying taxes on it there too), you would have to try to have some additional customers here in Bolivia so you can show some activity on your business. An inactive business after a while can be shut down and your work permit could be not renewed, as well as your residency.

You have to show you are working here and paying taxes here to a point. That's the catch with being self-employed here.

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