What is the corporate tax rate in Bulgaria vs Malta?

Bulgaria charges a flat 10% flat corporate tax. Malta charges 35% (effective ~5% with refund).

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

Bulgaria requires only BGN 2 (≈ €1) of share capital. Malta requires €1,165 (Ltd).

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

Bulgarian companies are typically registered in 3-7 business days. In Malta, expect 2-4 weeks.

Why do EU founders choose Bulgaria over Malta?

Effective 5% in Malta requires the refund mechanism - substance, lawyers, and time Bulgaria's 10% is real, immediate, and requires no shareholder gymnastics Malta is on the FATF grey list radar; banks scrutinise Maltese structures heavily Substance costs in Malta are €15K-30K/year just to satisfy economic substance rules Faster, cheaper banking in Bulgaria

When is Malta the better jurisdiction than Bulgaria?

If you have a gaming/iGaming licence - Malta dominates that niche If you have very large dividend flows and the refund math actually pencils out

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Jurisdiction comparison · 2026

Bulgaria 🇧🇬 vs Malta 🇲🇹: Where Should EU Founders Incorporate in 2026?

Malta's headline rate is misleading. After substance costs and refund timing, Bulgaria's straightforward 10% wins for almost every SME.

Head-to-head

	Bulgaria 🇧🇬	Malta 🇲🇹
Corporate tax	10% flat	35% (effective ~5% with refund)
Dividend tax	5%	0% (full imputation)
VAT rate	20% (0% intra-EU B2B)	18%
Min. share capital	BGN 2 (≈ €1)	€1,165 (Ltd)
Setup time	3-7 business days	2-4 weeks
EU membership	Yes (since 2007)	Yes (2004)
Social contributions	~32% (capped at BGN 4,130/mo)	~20%

Why Bulgaria wins

Effective 5% in Malta requires the refund mechanism - substance, lawyers, and time
Bulgaria's 10% is real, immediate, and requires no shareholder gymnastics
Malta is on the FATF grey list radar; banks scrutinise Maltese structures heavily
Substance costs in Malta are €15K-30K/year just to satisfy economic substance rules
Faster, cheaper banking in Bulgaria

When Malta is the better pick

If you have a gaming/iGaming licence - Malta dominates that niche
If you have very large dividend flows and the refund math actually pencils out

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