What is the corporate tax rate in Bulgaria vs Italy?

Bulgaria charges a flat 10% flat corporate tax. Italy charges 24% IRES plus ~3.9% IRAP.

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

Bulgaria requires only BGN 2 (≈ €1) of share capital. Italy requires €1 (SRL semplificata) to €10,000 (SRL).

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

Bulgarian companies are typically registered in 3-7 business days. In Italy, expect 4-8 weeks (notarial deed).

Why do EU founders choose Bulgaria over Italy?

Around 28% combined IRES and IRAP versus a flat 10%, before the 26% Italian dividend tax No notary required to incorporate, and no chamber of commerce annual dues Bulgarian VAT compliance is far lighter than Italian electronic invoicing via SdI plus esterometro obligations 5% dividend tax against 26% Bank onboarding for a Bulgarian EOOD is typically faster than Italian corporate onboarding for a new SRL

When is Italy the better jurisdiction than Bulgaria?

If you need Italian manufacturing relationships or Made in Italy positioning If you qualify for the impatriate regime on personal employment income

All comparisons

Jurisdiction comparison · 2026

Bulgaria 🇧🇬 vs Italy 🇮🇹: Where Should EU Founders Incorporate in 2026?

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.

Head-to-head

	Bulgaria 🇧🇬	Italy 🇮🇹
Corporate tax	10% flat	24% IRES plus ~3.9% IRAP
Dividend tax	5%	26%
VAT rate	20% (0% intra-EU B2B)	22% IVA
Min. share capital	BGN 2 (≈ €1)	€1 (SRL semplificata) to €10,000 (SRL)
Setup time	3-7 business days	4-8 weeks (notarial deed)
EU membership	Yes (since 2007)	Yes (founding)
Social contributions	~32% (capped at BGN 4,130/mo)	~30% plus INPS gestione separata for directors

Why Bulgaria wins

Around 28% combined IRES and IRAP versus a flat 10%, before the 26% Italian dividend tax
No notary required to incorporate, and no chamber of commerce annual dues
Bulgarian VAT compliance is far lighter than Italian electronic invoicing via SdI plus esterometro obligations
5% dividend tax against 26%
Bank onboarding for a Bulgarian EOOD is typically faster than Italian corporate onboarding for a new SRL

When Italy is the better pick

If you need Italian manufacturing relationships or Made in Italy positioning
If you qualify for the impatriate regime on personal employment income

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