What is the corporate tax rate in Bulgaria vs Sweden?

Bulgaria charges a flat 10% flat corporate tax. Sweden charges 20.6%.

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

Bulgaria requires only BGN 2 (≈ €1) of share capital. Sweden requires SEK 25,000 (≈ €2,200).

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

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

Why do EU founders choose Bulgaria over Sweden?

20.6% corporate tax plus the 3:12 dividend rules versus a flat 10% plus 5% Swedish employer contributions of 31.42% are uncapped; Bulgarian contributions stop at BGN 4,130 per month 25% Swedish VAT is the highest standard rate band in the EU against Bulgaria's 20% No close-company gränsbelopp calculation to run every year Personal marginal rates above 50% in Sweden versus a 10% flat personal rate in Bulgaria

When is Sweden the better jurisdiction than Bulgaria?

If you are raising from Nordic VCs that expect a Swedish AB If your team and customers are entirely Swedish and payroll must be local

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Jurisdiction comparison · 2026

Bulgaria 🇧🇬 vs Sweden 🇸🇪: Where Should EU Founders Incorporate in 2026?

Sweden's corporate rate is competitive, but uncapped employer contributions, 25% VAT, and the 3:12 dividend rules make extracting profit expensive. Bulgaria caps the contributions and flattens the rest.

Head-to-head

	Bulgaria 🇧🇬	Sweden 🇸🇪
Corporate tax	10% flat	20.6%
Dividend tax	5%	20% to 30% under the 3:12 close-company rules
VAT rate	20% (0% intra-EU B2B)	25%
Min. share capital	BGN 2 (≈ €1)	SEK 25,000 (≈ €2,200)
Setup time	3-7 business days	2-4 weeks
EU membership	Yes (since 2007)	Yes (1995)
Social contributions	~32% (capped at BGN 4,130/mo)	31.42% employer contributions, uncapped

Why Bulgaria wins

20.6% corporate tax plus the 3:12 dividend rules versus a flat 10% plus 5%
Swedish employer contributions of 31.42% are uncapped; Bulgarian contributions stop at BGN 4,130 per month
25% Swedish VAT is the highest standard rate band in the EU against Bulgaria's 20%
No close-company gränsbelopp calculation to run every year
Personal marginal rates above 50% in Sweden versus a 10% flat personal rate in Bulgaria

When Sweden is the better pick

If you are raising from Nordic VCs that expect a Swedish AB
If your team and customers are entirely Swedish and payroll must be local

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