Jurisdiction comparison · 2026

Bulgaria 🇧🇬 vs Portugal 🇵🇹: Where Should EU Founders Incorporate in 2026?

Portugal was the founder's darling 2020–2023. With NHR gone and the corporate rate still at 21%, Bulgaria has overtaken it as the most efficient EU operating jurisdiction.

Head-to-head

	Bulgaria 🇧🇬	Portugal 🇵🇹
Corporate tax	10% flat	21% (17% on first €50K)
Dividend tax	5%	28%
VAT rate	20% (0% intra-EU B2B)	23%
Min. share capital	BGN 2 (≈ €1)	€1 (Lda)
Setup time	3–7 business days	1–2 weeks
EU membership	Yes (since 2007)	Yes (1986)
Social contributions	~32% (capped at BGN 4,130/mo)	~34.75% (23.75% employer + 11% employee)

Why Bulgaria wins

Corporate tax less than half: 10% vs 21% (or 17% on first slice)
Dividend tax: 5% vs 28% — huge for owner-operators
NHR regime is gone (replaced by narrower IFICI from 2024)
Lower social security burden
No SAF-T monthly filing complexity

When Portugal is the better pick

If you personally want to live in Lisbon/Porto and the company follows you
If you qualify for the new IFICI scientific/innovation regime

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