Greece IKE vs Bulgaria EOOD: Real Tax Comparison for Greek Founders (2026)

Greece has cut its headline rates in recent years, so the honest comparison with Bulgaria is closer than most offshore marketing suggests. The real difference sits in social contributions, advance tax and administrative load rather than in the corporate rate alone.

The 2026 headline numbers

Item	Greece IKE	Bulgaria EOOD
Corporate income tax	22%	10%
Tax on dividends to an individual	5%	5%
Combined on distributed profit	~25.9%	14.5%
Advance corporate tax	80% of current year tax paid in advance	None
Minimum share capital	EUR 1	BGN 2, about EUR 1
Owner social contributions	EFKA fixed classes, EUR 1,500 to EUR 6,000+ a year	Capped base, typically EUR 900 to EUR 2,000 a year
Standard VAT	24%	20%
Formation time	1 to 3 weeks	About 5 business days

On EUR 150,000 of profit taken out in full, a Greek IKE owner keeps roughly EUR 111,000 before EFKA, and a Bulgarian EOOD owner keeps about EUR 128,000. Add the advance-tax cash flow burden and the practical gap widens further in year one.

The parts of the Greek system that hurt

The 22% rate is reasonable, but three features change the lived experience:

1. Advance tax. Greek companies prepay 80% of the current year's estimated tax alongside the prior year's balance. In a growing business this ties up serious working capital.
2. EFKA contributions. Managers and members of an IKE pay fixed insurance classes regardless of whether the company distributed anything. The cost is unrelated to profit.
3. Filing load. MyDATA e-books, monthly VAT, withholding returns and payroll filings all run in parallel, and penalties for late submission are applied mechanically.

Bulgaria keeps 10% corporate tax, 5% on the dividend and a capped social base, with annual corporate returns and no advance-tax regime. See the annual filing calendar for the whole year in one view.

Salary versus dividends

In Greece, salary from your own IKE runs into a progressive scale reaching 44% plus solidarity effects, so most owners keep salaries low and rely on dividends at 5%. EFKA classes still apply either way.

In Bulgaria the manager's contract sits on a capped contribution base, so a moderate salary is cheap, creates a real substance record and builds local health cover. Dividends then carry 5%. The payroll and employer cost guide shows the 2026 figures.

Place of effective management

If you live in Athens or Thessaloniki and run everything from there, Greek authorities will treat a Bulgarian company as Greek tax resident under the effective management test in the Greece-Bulgaria treaty. Corporate tax then falls due in Greece at 22% and the exercise achieves nothing.

Substance that stands up:

• Management decisions taken and minuted in Bulgaria
• A real registered address, see the registered office guide
• An operating Bulgarian bank account, see the business bank account guide
• Local accounting, see the accounting services page
• Client contracts in the Bulgarian entity's name

Greece is also unusually attentive to Bulgarian structures, given the border and a long history of cross-border arrangements. Weak substance gets noticed.

Invoicing Greek clients from Bulgaria

Services to Greek VAT-registered businesses are reverse charged once your Bulgarian VAT number is VIES-validated. Consumer sales into Greece run through OSS above the EUR 10,000 pan-EU threshold at Greek 24% VAT. The VAT registration guide covers thresholds and timing.

Formation, timeline and running costs

• Formation from EUR 399, typically five business days
• Fully remote with a notarised and apostilled power of attorney
• Registered address from EUR 200 a year
• Accounting from EUR 50 a month, more with VAT and payroll
• Corporate tax return and annual statements due 30 June

The documents checklist lists what to prepare.

Frequently asked questions

Is Bulgaria genuinely cheaper than Greece after the Greek rate cuts?

On distributed profit, yes: 14.5% against about 25.9%, plus no advance tax and a lower social floor. It is not the four-fold difference some marketing claims, and for a small business the saving may not justify relocating.

Do I still pay EFKA if I move to Bulgaria?

Not for activity carried out in Bulgaria once you are insured there under EU coordination rules. Any remaining Greek activity can keep you in the Greek system, so close it cleanly or take advice.

Can I keep living in Greece and own a Bulgarian company?

You can own it. You cannot manage it from Greece and expect Bulgarian taxation of the profits. Ownership and management are treated separately.

How long does Bulgarian registration take compared with Greece?

Five business days is typical in Bulgaria once documents are in order, against one to three weeks for an IKE including GEMI steps.

Next step

Model both scenarios in the tax calculator, read the EOOD explainer, then book a free consultation.