What is the corporate tax rate in Bulgaria vs Austria?

Bulgaria charges a flat 10% flat corporate tax. Austria charges 23%.

How much share capital do you need in Bulgaria vs Austria?

Bulgaria requires only BGN 2 (≈ €1) of share capital. Austria requires €10,000 (FlexKapG/GmbH).

How long does it take to register a company in Bulgaria compared to Austria?

Bulgarian companies are typically registered in 3-7 business days. In Austria, expect 3-6 weeks.

Why do EU founders choose Bulgaria over Austria?

23% plus 27.5% KESt in Austria versus 10% plus 5% in Bulgaria €1 share capital instead of €10,000 paid-in capital Austria charges minimum corporate tax even in loss-making years; Bulgaria does not Notarial formation and Firmenbuch process replaced by a straightforward register filing Bulgarian social contributions are capped; Austrian contributions bite far higher

When is Austria the better jurisdiction than Bulgaria?

If your clients are Austrian public sector or DACH enterprises that insist on a local entity If you need Austrian research premium funding for an in-country R&D team

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Jurisdiction comparison · 2026

Bulgaria 🇧🇬 vs Austria 🇦🇹: Where Should EU Founders Incorporate in 2026?

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%.

Head-to-head

	Bulgaria 🇧🇬	Austria 🇦🇹
Corporate tax	10% flat	23%
Dividend tax	5%	27.5% KESt
VAT rate	20% (0% intra-EU B2B)	20%
Min. share capital	BGN 2 (≈ €1)	€10,000 (FlexKapG/GmbH)
Setup time	3-7 business days	3-6 weeks
EU membership	Yes (since 2007)	Yes (1995)
Social contributions	~32% (capped at BGN 4,130/mo)	~39% split employer/employee

Why Bulgaria wins

23% plus 27.5% KESt in Austria versus 10% plus 5% in Bulgaria
€1 share capital instead of €10,000 paid-in capital
Austria charges minimum corporate tax even in loss-making years; Bulgaria does not
Notarial formation and Firmenbuch process replaced by a straightforward register filing
Bulgarian social contributions are capped; Austrian contributions bite far higher

When Austria is the better pick

If your clients are Austrian public sector or DACH enterprises that insist on a local entity
If you need Austrian research premium funding for an in-country R&D team

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