Jurisdiction comparison · 2026

Bulgaria 🇧🇬 vs United Kingdom 🇬🇧: Where Should EU Founders Incorporate in 2026?

Post-Brexit, a UK Ltd is a third-country entity for EU purposes. If you sell across the EU, Bulgaria gives you the passport at less than half the tax rate.

Head-to-head

	Bulgaria 🇧🇬	United Kingdom 🇬🇧
Corporate tax	10% flat	25% (19% on <£50K)
Dividend tax	5%	0% (no WHT)
VAT rate	20% (0% intra-EU B2B)	20%
Min. share capital	BGN 2 (≈ €1)	£1 (Ltd)
Setup time	3–7 business days	24 hours
EU membership	Yes (since 2007)	No (left 2020)
Social contributions	~32% (capped at BGN 4,130/mo)	~13.8% employer NIC

Why Bulgaria wins

No EU passport — UK companies face third-country friction on every cross-border sale
Corporate tax: 10% vs 25%
VAT MOSS no longer available — UK sellers register country-by-country
Customs declarations on every shipment into the EU
No automatic worker mobility across the EU

When United Kingdom is the better pick

If your customer base is primarily UK and English-speaking
If you raise from London-based investors who require a UK Ltd or US Inc

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