Jurisdiction comparison · 2026
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.
| Bulgaria 🇧🇬 | France 🇫🇷 | |
|---|---|---|
| Corporate tax | 10% flat | 25% (15% on first €42,500) |
| Dividend tax | 5% | 30% flat tax (PFU: 12.8% IR + 17.2% social) |
| VAT rate | 20% (0% intra-EU B2B) | 20% |
| Min. share capital | BGN 2 (≈ €1) | €1 (SAS/SARL, but banks expect more) |
| Setup time | 3-7 business days | 2-6 weeks |
| EU membership | Yes (since 2007) | Yes (founding) |
| Social contributions | ~32% (capped at BGN 4,130/mo) | ~45% employer + employee, uncapped on most bases |
The number French founders should compare is not the headline corporate rate but the full path from profit to personal bank account. In France that path is 25% corporate tax followed by the 30% flat tax on the distribution, before any uncapped social charges on salary. In Bulgaria the same path is 10% then 5%, with social contributions capped monthly. The catch is residence: French tax residence follows your foyer, your main place of stay, and your centre of economic interests, and France applies exit-tax rules on substantial shareholdings. A Bulgarian EOOD run from a French living room is a French permanent establishment. Founders who genuinely move, and who can show Bulgarian management and substance, are the ones who keep the arbitrage.
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