Ireland 12.5% Tax vs Bulgaria 10%: Remote Setup Winner for Non-EU Founders (2026 Guide)

Non-EU entrepreneurs from the UK, Germany, Turkey, and beyond often weigh Ireland’s tech prestige and 12.5% tax against Bulgaria’s rock-bottom 10% rate and seamless remote setup. Ireland draws giants like Google with its ecosystem, but Bulgaria offers unmatched simplicity—no bonds, no residency traps—for digital nomads and SaaS founders eyeing EU passports. This in-depth 2026 guide (1,000+ words) dissects processes, taxes, banking, compliance, and real costs to crown the remote winner.

Company Formation Process

Bulgaria: 3-Day Digital Remote Magic

Bulgaria’s OOD (Ltd) or EOOD (single-owner) registers fully online via the Commercial Register portal (portal.registryagency.bg). Non-EU foreigners submit notarized power of attorney (POA), articles of association, and bank deposit proof—no visit required. Steps:

1. Prepare docs (templates online, translated to Bulgarian).
2. Notarize POA abroad (apostille for Hague countries).
3. Deposit €2 capital in Bulgarian bank (remote via Wise/agents).
4. E-file: Live in 72 hours, VAT number instant.

100% foreign ownership, no local director—perfect for solo founders. 2026 updates streamlined e-signatures further.​

Ireland: 5-Day Digital with EEA Catch

Ireland’s Private Limited Company (LTD) uses CORE portal (core.cro.ie) for digital filing. Non-residents form remotely, but need:

• One EEA-resident director (or €25,000 Section 137 bond, ~€1/year via agents).
• Company secretary (can be director).
• Registered office in Ireland (€200/year).

Steps:

1. Reserve name (free, instant).
2. File Constitution (model docs).
3. Appoint directors/secretary.
4. Pay CRO fee (€50-100).

Non-EU owners succeed via agents (e.g., Irish Formations), but bond adds friction. No min capital helps startups.

Verdict: Bulgaria’s zero-residency rule trumps Ireland’s EEA hurdle for pure remote plays.

Capital and Share Structure

Aspect	Bulgaria OOD/EOOD	Ireland LTD
Minimum Capital	€2 (BGN 2) ​	None ​
Deposit Timing	Pre-registration bank proof ​	N/A ​
Shares	One shareholder OK; flexible	1+ shareholders; 1 EUR shares ​
Increases	Easy amendment ​	Simple resolution ​

Bulgaria’s tiny capital suits bootstrappers; Ireland’s flexibility aids investors. Both allow single-owner setups.

Tax Regimes Deep Dive

Bulgaria: Flat and Forgiving

• Corporate Income Tax: 10% on worldwide profits (territorial for non-residents).
• Micro-Enterprise: 0% if turnover < BGN 100K (~€50K); 3% up to €1M—ideal for starters.
• Dividends: 5% withholding (0% in EU holdings).
• VAT: 20% standard, 9% tourism; register at €0 threshold for non-residents.
• Social Security: 32.7-34.9% on salaries (capped).

No CFC rules for pure holdings. Double-tax treaty with Ireland avoids double-dips.​

Ireland: Trading Tax Heaven, Passive Pain

• Corporate Tax: 12.5% on “trading” (active business); 25% passive (rentals, IP).
• R&D Credit: 25% refundable—tech winners.
• Dividends: 20-51% DWT (treaty-reduced to 5-15%).
• VAT: 23%; intra-EU simplified.
• PAYE/PRSI: 11-52% employer contributions.

Knowledge Development Box (6.25% IP tax) lures software firms, but audits sniff “trading” vs passive.​

Tax Metric	Bulgaria	Ireland
Standard Corp	10% ​	12.5% trading ​
Passive Rate	10% ​	25% ​
Dividends WHT	5% ​	20-51% (treaty 5-15%) ​
Micro/SME Relief	0-3% <€1M ​	R&D 25% credit ​
Effective for SaaS	~7-10%	~10-12% post-credits ​

Edge: Bulgaria for simplicity; Ireland for scaled tech with IP.

Banking and Payments

Bulgaria: Remote-friendly fintechs (Revolut Business, Wise) open in days; traditional banks (DSK, UniCredit) need video ID. IBAN instant post-registration.​

Ireland: Stripe/PayPal hub, but banks (AIB, BOI) demand in-person/video for non-residents (€200 fee). N26-like options emerge, yet EEA director aids.​

Both SEPA-compliant; Bulgaria cheaper for Eastern Europe clients.

Ongoing Compliance and Costs

Annual Obligations

• Bulgaria: €300-500/year (accountant, tax return, audit if >€2.5M turnover). Digital filings.​
• Ireland: €800-1,500 (BOD filings €20-40/year, audit-exempt <€10M/€12M turnover). CRO annual return.​

Cost Breakdown (Year 1)	Bulgaria	Ireland
Formation Fees	€200-400 ​	€300-600 + bond ​
Accountant Annual	€400	€800 ​
Office/Virtual Addr	€100	€250 ​
Total Y1	€700-900	€1,350-2,000

Ireland’s ecosystem justifies premiums for VC-chasers; Bulgaria minimizes overhead.

Pros, Cons, and Use Cases

Bulgaria Wins For:

• Solo non-EU digital businesses (SaaS, e-com).
• Holdings/passive income (10% flat).
• Ultra-low startup costs/time.​

Ireland Excels In:

• Tech scaling with R&D (Apple model).
• English talent pool, US proximity.
• IP monetization.​

Real-World: UK post-Brexit founders pick Bulgaria for no-EEA ease; US tech opts Ireland for credits.​

Final Verdict: Bulgaria for Remote Non-EU Speed

Ireland’s tax and talent dazzle scaled players, but Bulgaria dominates remote, low-capital EU entry—3 days, €2 start, 10% tax, zero director bonds. Save €1K+ yearly while hitting EU markets instantly.

Ready to register remotely? Bulgaria Company Setup handles your OOD in 72 hours—POA, bank setup, VAT included. Contact us at bulgaria-company-setup.com and launch EU-compliant today.