Jurisdiction comparison · 2026
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%.
| Bulgaria 🇧🇬 | Denmark 🇩🇰 | |
|---|---|---|
| Corporate tax | 10% flat | 22% |
| Dividend tax | 5% | 27% up to the threshold, then 42% |
| VAT rate | 20% (0% intra-EU B2B) | 25%, with no reduced rate |
| Min. share capital | BGN 2 (≈ €1) | DKK 20,000 (≈ €2,680) for an ApS |
| Setup time | 3-7 business days | 1-3 weeks |
| EU membership | Yes (since 2007) | Yes (1973) |
| Social contributions | ~32% (capped at BGN 4,130/mo) | Low employer contributions, but very high personal income tax |
Danish founders usually discover the real cost at the distribution stage rather than the corporate one. 22% corporate tax looks survivable until the aktieindkomst rate applies at 27% and then 42% above the threshold, which leaves an owner-operator with a little over half the profit. A Bulgarian EOOD taxes the company at 10% and the dividend at 5%. The caveat is the same one that applies across the Nordics: SKAT looks at where the company is actually managed and where the founder is resident, so a Danish resident running everything from Copenhagen will not escape Danish taxation by registering abroad. The structure works when the founder genuinely relocates management and can evidence it.
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