7 September 20263 min read
Swiss corporate tax can be competitive, but capital requirements, cantonal variation, social charges and running costs are not. Here is the 2026 comparison against a Bulgarian EOOD.
Switzerland is the one jurisdiction where founders assume tax is already solved. Sometimes it is. Often the effective burden, once cantonal rates, social charges and running costs are added, lands well above Bulgaria.
| Item | Switzerland (GmbH) | Bulgaria (EOOD) |
|---|---|---|
| Effective corporate tax | Roughly 12% to 21% depending on canton | 10% flat, everywhere |
| Dividend tax (owner) | Partial taxation at personal rates, commonly 20% to 35% effective | 5% final |
| Share capital | CHF 20,000, paid in full | BGN 2 (about EUR 1) |
| Annual accounting and admin | Typically CHF 3,000 to CHF 8,000 | EUR 1,000 to EUR 3,000 |
| EU VAT number | No, Switzerland is outside the EU VAT area | Yes |
Swiss GmbH in a mid-rate canton. Around 15% corporate tax leaves about EUR 127,500. Dividends are then taxed personally, and at a typical effective 25% that is roughly EUR 31,900. Net: about EUR 95,600, or an effective 36%.
Bulgaria EOOD. 10% then 5% leaves about EUR 128,250, an effective 14.5%.
Even against a low canton, the personal layer is what separates the two. Model it yourself in the calculator.
This is the argument that decides many cases. A Swiss company sits outside the EU VAT area, so selling digital products or goods into the EU means dealing with import VAT, OSS registration in a member state, or an EU establishment anyway. A Bulgarian EOOD is inside the single market from day one, with a VAT number that works for reverse charge across all member states. See the VAT registration guide.
CHF 20,000 must be paid in and is genuinely locked up at formation. Bulgaria requires BGN 2. Add Swiss audit thresholds, higher accounting fees and mandatory occupational pension contributions for employees, and the annual overhead difference is usually several thousand euros before a single tax franc is compared. Our annual costs breakdown shows the Bulgarian side in detail.
Be honest about this. Switzerland is the better answer if you need Swiss banking relationships for a regulated activity, if you are already Swiss resident and not moving, or if your clients contract only with Swiss entities. Tax rates alone rarely justify a move in either direction if your residence is not moving with the company.
On corporate tax the gap can be small. On dividends, capital, and annual running costs it is not. The 14.5% total effective burden in Bulgaria is difficult to match once Swiss personal taxation is included.
Yes. Ownership is open. Whether Bulgaria taxes the profit depends on where the company is actually managed, which is covered in our registered office and substance guide.
About five business days, fully remote, with fees from EUR 399. See the formation timeline.
No. A notarised power of attorney lets us handle registration without you flying in. Bank onboarding sometimes prefers a visit but remote options exist.
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