Jurisdiction comparison · 2026
Australia's imputation system removes double taxation but leaves distributed profit at the owner's marginal rate, up to 47%. Bulgaria caps it near 14.5% - if the founder has actually left the Australian tax net.
| Bulgaria 🇧🇬 | Australia 🇦🇺 | |
|---|---|---|
| Corporate tax | 10% flat | 25% base rate / 30% general |
| Dividend tax | 5% | Franked dividends taxed at marginal rate up to 47% |
| VAT rate | 20% (0% intra-EU B2B) | GST 10% |
| Min. share capital | BGN 2 (≈ €1) | None (Pty Ltd) |
| Setup time | 3-7 business days | 1-2 days ASIC registration |
| EU membership | Yes (since 2007) | No |
| Social contributions | ~32% (capped at BGN 4,130/mo) | 12% superannuation guarantee on wages |
Australia's dividend imputation is genuinely well designed: franking credits mean profit is not taxed twice, but the total lands at the shareholder's marginal rate, which reaches 47% including the Medicare levy. A Bulgarian EOOD stops at 10% corporate and 5% on distribution. The offsetting complications for an Australian founder are the controlled foreign company rules, which attribute certain foreign company income back to Australian-resident controllers, and CGT event I1, which deems a disposal of assets when a person ceases Australian residency. Franking credits also do not attach to Bulgarian dividends, so an Australian resident receiving them is taxed at the full marginal rate with only a foreign income tax offset for the 5% withheld. The saving is real for founders who genuinely relocate and cease residency; it is illusory for those who do not.
Read the Bulgaria tax residency guideA step-by-step walkthrough of the remote registration, the documents you sign at home, exit-tax points and how VAT works on sales back into Australia.
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