EU member, Schengen since 2025, euro since 2026. Lowest income tax in the EU, second-lowest corporate tax. Lowest cost of living. A location that speaks for itself.
No progressive tax system, no exceptions for specific income classes, no complicated special rules. Bulgaria taxes income and corporate profits at a uniform rate of 10 percent — regardless of the amount. This is transparent, predictable and attractive for private investors and entrepreneurs alike.
The lowest income tax in the entire EU — uniform for all types of income and all income levels. No progression brackets, no exceptions. Whether someone earns €50,000 or €500,000, the same rate applies.
Source: PwC Worldwide Tax Summaries 2026
The second-lowest corporate tax in the EU — only Hungary is lower at 9%. Applies uniformly to all corporate profits, regardless of size or sector. Company formation with minimum capital equivalent to €1 is possible.
Source: Tax Foundation 2026 · OECD
Dividends paid to private individuals in Bulgaria are taxed at 5 percent. Dividends between Bulgarian companies or to EU/EEA companies generally remain fully tax-free.
Source: CMS Tax Guide Bulgaria 2025
Bulgaria does not levy a wealth tax on private net wealth — neither on real estate, financial assets nor other real assets. Property tax is levied at municipal level and typically amounts to 0.15 to 0.30 percent of the tax value — far below Western European comparisons.
Spouses and direct descendants (children, grandchildren) are fully exempt from inheritance tax. Siblings and their children pay 0.4 to 0.8 percent on inheritances above an allowance — exact thresholds should be checked with a local tax advisor. Other heirs pay 3.3 to 6.6 percent, depending on the municipality. Extremely low by Western European standards.
Bulgaria maintains double taxation agreements with more than 70 countries worldwide — including Germany, Austria, Switzerland and most EU countries. These reduce or eliminate withholding tax on cross-border payments and enable tax-efficient international structures.
Since mid-2025, non-EU citizens working for foreign employers or clients can legally and long-term live in Bulgaria through the Digital Nomad Visa. Another signal of increasing attractiveness as a modern business location.
Numbers speak more clearly than descriptions. The comparison shows: Bulgaria is not a tax haven — but within the EU it has an exceptionally efficient and predictable tax system that benefits private investors and entrepreneurs alike.
| Country | Income tax (max.) | Corporate tax | Dividend (private individual) |
|---|---|---|---|
| 🇧🇬 Bulgaria | 10% (flat) | 10% | 5% |
| 🇭🇺 Hungary | 15% (flat) | 9% | 15% |
| 🇷🇴 Romania | 10% (flat) | 16% | 8% |
| 🇦🇹 Austria | 55% | 24% | 27.5% |
| 🇩🇪 Germany | 45% | ~30% | 26.375% |
| 🇫🇷 France | 45% | 36.1%* | 30% |
| 🇧🇪 Belgium | 50% | 25% | 30% |
¹ Bulgarian dividend tax: 5% for private individuals. * France 2025/2026 with a temporary special surcharge for large companies. Sources: Tax Foundation, OECD, PwC Worldwide Tax Summaries 2026.
Bulgaria is far more than a tax-efficient location. The combination of low living costs, high quality of life, modern infrastructure in the cities and exceptional natural diversity makes the country one of the most attractive relocation and entrepreneur destinations in the EU.
Rents, food, restaurants, services — Bulgaria is the cheapest country in the EU for everyday life. Anyone bringing Western European income or wealth lives at a level that would cost several times as much in Germany or Austria.
Full freedom of travel throughout the Schengen area. EU single market with all advantages — free movement of goods, services and capital. Bulgaria combines Eastern cost structures with Western European freedoms.
Black Sea coast with long summers, ski resorts in the Rhodopes and Rila Mountains, green valleys and historic cities. Bulgaria offers natural landscapes that barely exist in Western Europe anymore — within a compact area.
Sofia is developing into the digital capital of Southeast Europe — with a growing tech sector, modern office space, international flair and a young, well-educated population. Plovdiv, Varna and Burgas complement the urban offering.
Bulgaria lies at the intersection of Europe, the Middle East and Central Asia. Gateway to the Balkans and the markets of Eastern Europe. Direct flights to all European capitals. Time zone CET+1 — ideal for international business.
Bulgaria is not called the “Silicon Valley of Southeast Europe” without reason. IT, software, e-commerce, fintech — international companies value the combination of qualified specialists, low labor costs and favorable taxes.
Bulgaria offers entrepreneurs one of the easiest entry routes in the EU — with one of the lowest tax burdens and a clear, predictable legal framework. Whether sole entrepreneur, company or international holding structure — the conditions are attractive.
A Bulgarian single-member limited liability company (EOOD) can be founded with minimum capital of €1. Registration is fast, affordable and can be fully digital. Ideal for freelancers, service providers and international entrepreneurs.
Corporate profits are taxed at 10 percent corporate tax. Distributed dividends to private individuals are subject to a further 5 percent. Total tax burden on distributed profits: 14.5 percent — compared with 60–65 percent in some Western European countries.
The network of more than 70 agreements enables tax-efficient cross-border structures. Dividends, interest and royalty payments can be significantly reduced or fully exempt from tax when structured correctly.
Bulgaria offers one of the youngest and best-educated workforces in the EU — at labor costs far below Western European levels. Especially in IT and technology, Bulgaria is regarded as a leading nearshoring location in Europe.
Bulgaria is attractive — but complex for newcomers. Language, bureaucracy, local networks and the right contacts determine success or frustration. PIB Professionals in Bulgaria facilitates contact with experienced local tax advisors, lawyers and business consultants — and accompanies German-speaking private investors and entrepreneurs in building their position in Bulgaria.
The managing director has lived and worked in Bulgaria for years — with deep understanding of local structures, regulatory requirements and the German-Bulgarian interface. No remote office, no theoretical advice — real presence on the ground.
No sales pressure. Real information. The managing director personally explains which opportunities Bulgaria offers for your individual situation.
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