Bulgaria vs the rest of the EU

Germany is a great market - but a terrible holding jurisdiction. Bulgaria delivers the same EU passport at roughly a third of the effective tax burden, with setup measured in days.

The Netherlands earned its reputation as a holding hub in a different tax era. For operating EU SMEs in 2026, Bulgaria delivers materially better economics with less compliance.

Ireland remains attractive for IP-heavy multinationals. For everyone else - especially bootstrapped SaaS and consulting - Bulgaria delivers a lower headline rate and dramatically lower operating costs.

Portugal was the founder's darling 2020-2023. With NHR gone and the corporate rate still at 21%, Bulgaria has overtaken it as the most efficient EU operating jurisdiction.

Romania's micro regime can beat Bulgaria for tiny businesses, but eligibility keeps narrowing. Above €100K turnover, Bulgaria is materially cheaper and more predictable.

Malta's headline rate is misleading. After substance costs and refund timing, Bulgaria's straightforward 10% wins for almost every SME.

Post-Brexit, a UK Ltd is a third-country entity for EU purposes. If you sell across the EU, Bulgaria gives you the passport at less than half the tax rate.

Cyprus wins for IP-licensing structures and personal non-dom planning. For an operating company with active trading income, Bulgaria is cheaper and simpler.

Estonia's 0% on retained profits is famous - but the moment you distribute, it's 22%. For founders who actually pay themselves dividends, Bulgaria's 10% corporate + 5% dividend is roughly half the effective burden, with easier banking.

France taxes an owner-operator twice over: 25% at company level, then a 30% flat tax on the dividend. Bulgaria's 10% plus 5% leaves roughly twice as much in your pocket on the same profit.

Belgium's combination of 25% corporate tax and 30% withholding on dividends is one of the harshest in the EU for owner-managers. Bulgaria delivers the same EU standing at 10% plus 5%.

Austria's 23% corporate tax looks moderate until the 27.5% KESt on distribution lands. Total burden on distributed profit is roughly 44% against Bulgaria's 14.5%.

Spain layers corporate tax, a progressive dividend scale, autónomo quotas, and in some regions a wealth tax. Bulgaria charges 10% and 5% with none of the regional surprises.

Italy's combined IRES and IRAP burden of roughly 28%, followed by 26% on dividends, leaves an owner-operator with barely half the profit. Bulgaria's 10% plus 5% is the sharpest contrast in the EU.

Sweden's corporate rate is competitive, but uncapped employer contributions, 25% VAT, and the 3:12 dividend rules make extracting profit expensive. Bulgaria caps the contributions and flattens the rest.

Denmark runs a moderate corporate rate on top of one of Europe's harshest dividend and personal tax stacks. Bulgaria removes both layers, taxing the same profit at 10% and 5%.

Finland's 20% corporate rate is reasonable, but the net-asset-based dividend split and 25.5% VAT make profit extraction expensive. Bulgaria replaces the whole calculation with 10% and 5%.

Poland's small-taxpayer 9% rate is attractive until you outgrow it, at which point 19% corporate plus 19% dividend applies. Bulgaria keeps 10% and 5% at any size.

Switzerland's low VAT and cantonal rates are real, but the 35% dividend withholding, CHF 20,000 capital and non-EU status make it expensive for an EU-facing operating company.

Norway taxes company profit at 22% and then the dividend at an effective 37.84%, on top of a net wealth tax on the shares themselves. Bulgaria applies 10% and 5% with no wealth tax.