Spain SL vs Bulgaria EOOD: Real Tax Comparison for Spanish Founders (2026)

Spain has become one of Europe''s most popular places to live and one of its more expensive places to run a company. Between corporate tax, savings-income tax on dividends, the autonomo social security quota and, in some regions, wealth tax, a profitable one-person SL can lose close to half of what it earns.

Bulgaria charges 10% on company profit and 5% on dividends, with a company you can register remotely in under a week. Here is the honest comparison for 2026, including where the Spanish option is still the right one.

2026 rates side by side

Item	Spain (SL)	Bulgaria (EOOD)
Corporate tax	25% standard; 15% for new companies in their first two profitable years	10% flat
Dividend tax	19% to 28% savings-income scale	5% final
Effective on distributed profit	39% to 46%	14.5%
Social security for the founder	Autonomo societario, roughly EUR 320 to EUR 590 per month by income bracket	Self-insured manager, roughly EUR 180 to EUR 450 per month
Wealth tax	Regional, plus the state solidarity tax on large fortunes	None
Minimum capital	EUR 1 since the Crea y Crece law	BGN 2
Annual accounting	EUR 1,200 to EUR 2,500	EUR 500 to EUR 1,200

On EUR 100,000 of profit distributed in full: a Spanish SL leaves roughly EUR 56,000 to EUR 58,000 after corporate tax and the savings-income scale. A Bulgarian EOOD leaves EUR 85,500. The full arithmetic on the Bulgarian side is in the dividend tax guide.

The three costs Spanish founders underestimate

The autonomo societario quota. A director who controls the company must register as autonomo societario regardless of whether they draw a salary. The minimum contribution base for company directors is higher than for ordinary self-employed people, so the floor is meaningful even in a loss-making year.

Modelo 720 and asset reporting. Spanish residents report foreign assets above EUR 50,000 per category. The penalties regime has been softened after EU court rulings, but the filing obligation remains and it catches people who set up abroad without advice.

Regional variation. Madrid and Andalusia are far cheaper than Catalonia or the Basque Country on wealth tax and inheritance tax. Your effective burden depends on your autonomous community, so a national average tells you very little.

Beckham Law versus a Bulgarian company

Spain''s special expatriate regime, commonly called the Beckham Law, taxes qualifying inbound workers at 24% on Spanish-source employment income up to EUR 600,000 and exempts most foreign-source income for up to six years. It was widened in 2023 to cover some entrepreneurs and remote workers.

It is a genuinely good regime, and if you qualify it can beat a Bulgarian structure on simplicity. The catches:

• You must not have been Spanish tax resident in the previous five years.
• It is time-limited: the year of arrival plus five more. Then you fall back to the ordinary scale, where the top marginal rate exceeds 45% in most regions.
• Dividends from a company you control can be treated as Spanish-source depending on the structure, so the exemption is not automatic.

Bulgaria''s 10% and 5% are not a temporary regime. They are the standing law and have been for over a decade. For founders thinking beyond a six-year horizon, that permanence matters more than the headline comparison.

Substance: the deciding factor

The Spanish tax agency is active on foreign-company cases. If you live in Spain and manage a Bulgarian company from a Spanish desk, the AEAT can assert that the company''s place of effective management is Spain under article 4 of the Spain-Bulgaria treaty, tax it as a Spanish resident company, and add penalties.

What makes a Bulgarian company defensible:

• Management in Bulgaria. Board decisions, contract signature, and real presence in country.
• A genuine registered office, not a forwarding address. See the registered office guide.
• Local bookkeeping and a Bulgarian bank account. Our bank account guide covers what non-residents need.
• Personal residency alignment. The clean version of this is leaving Spanish tax residency: under 183 days, no Spanish centre of economic interests, and a Bulgarian residence certificate.

If you intend to keep living in Spain full-time, treat a Bulgarian company as a Spanish-taxed company and plan accordingly. That is not a reason to avoid Bulgaria for genuinely international activity, but it is a reason to be honest about what it saves.

Setting up the Bulgarian side

An EOOD is the single-shareholder version and is what most solo founders use. Registration runs 3 to 7 working days once documents are ready, and the whole thing can be done under a notarised, apostilled power of attorney without travelling. What you need is listed in the registration documents guide, and the day-by-day sequence is in the formation timeline.

Budget for year one:

• Formation from EUR 399 all-in
• Registered address EUR 120 to EUR 300 per year
• Accounting EUR 50 to EUR 150 per month
• VAT registration when you cross the threshold or sell B2B cross-border, see the VAT registration guide

Total ongoing cost is documented in Bulgaria company annual costs.

VAT: the practical difference

Spain''s VAT registration is bundled with the census declaration and the ROI for intra-community operations, which can take weeks and is regularly delayed. Bulgaria''s voluntary VAT registration typically completes in 7 to 14 days and the VIES listing follows immediately. For a business selling digital services to EU businesses, that speed is a real operational advantage.

Both countries apply a 20% or 21% standard rate domestically, so on domestic sales there is no meaningful VAT arbitrage. The difference is administrative.

When keeping the Spanish SL is right

• Your customers are Spanish and expect Spanish invoices with Spanish VAT.
• You employ people in Spain or hold Spanish property inside the company.
• You qualify for the Beckham regime and your horizon is under six years.
• Your business is local services: a Bulgarian company adds cost with no benefit.

Frequently asked questions

Can I keep living in Spain and pay 10% through a Bulgarian company?

Not reliably. If you manage the company from Spain, Spain can tax it as resident. The structure depends on management and personal residency, not on where the company is registered.

Does Bulgaria have a wealth tax?

No. There is no net wealth tax and no solidarity tax on large fortunes. Property is taxed at municipal rates that are low by Western European standards.

What is the total tax on profit I take out of a Bulgarian company?

14.5%: 10% corporate tax, then 5% on the distributed 90%.

Is an EOOD the same as an SL?

Functionally close. Both are limited liability companies with a nominal minimum capital. The EOOD has one shareholder; the OOD has two or more. See EOOD vs OOD.

How long does the whole move take?

The company itself, under a week. Banking, VAT and a clean personal residency change realistically take one to three months.

Next step

Run your own numbers in the tax calculator, or book a free consultation. We are a Varna-based desk that registers Bulgarian companies for foreign founders and we will say plainly when staying in Spain is the better option.