Jurisdiction comparison · 2026
The Netherlands earned its reputation as a holding hub in a different tax era. For operating EU SMEs in 2026, Bulgaria delivers materially better economics with less compliance.
| Bulgaria 🇧🇬 | Netherlands 🇳🇱 | |
|---|---|---|
| Corporate tax | 10% flat | 19% / 25.8% |
| Dividend tax | 5% | 15% (treaty reduced) |
| VAT rate | 20% (0% intra-EU B2B) | 21% |
| Min. share capital | BGN 2 (≈ €1) | €0.01 (BV) |
| Setup time | 3-7 business days | 1-3 weeks |
| EU membership | Yes (since 2007) | Yes (founding) |
| Social contributions | ~32% (capped at BGN 4,130/mo) | ~28% employer + employee |
For a Dutch founder, comparing 10% with the Dutch BV rate is only the first step. A DGA may also need to model the customary-salary rules, Box 2 tax on substantial-interest income, and the preservative assessment that can arise on emigration. Deregistering from the gemeente or registering a Bulgarian EOOD does not by itself move effective management. If the founder continues making key decisions from the Netherlands, the Belastingdienst can still examine where the company is actually managed. Bulgaria is most compelling when the commercial move is genuine and documented, while a Dutch BV can remain preferable where investors, staff, or regulated activities require a Dutch operating presence.
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