Offshore investing 101: Europe’s best low-tax countries
Switzerland, Malta, Estonia, Cyprus, Romania and friends: where your company and wealth grow best in Europe – with 2026 numbers, legally.
Bulgaria
Bulgaria skips the special regimes because it doesn’t need them: the normal system already ends at 14.5% on distributed profits, and living costs sit far below Western Europe. The price: admin in Bulgarian, banks that ask a lot of questions and a spot on the FATF grey list.
Our verdict
The best pick for founders who actually move there, run a simple owner-managed business and want one of the lowest all-in EU rates without clever structures. Skip it if you want to keep living elsewhere, need English-only admin or want a residence card without a real local business or the new nomad visa.
Great for
- EU founders happy to live in Sofia, Plovdiv or on the coast
- Service businesses that pay out profits (14.5% combined)
- Budget-conscious founders who want euro and Schengen without Western rents
Skip it if
- People who want to stay resident in a high-tax country and “just have a company” here
- Founders who need everything in English
- Non-EU nationals without a local business plan
Key numbers at a glance.
- Corporate tax
- 10%
- flat
- Dividend tax / WHT
- 5%
- final; dividends to EU/EEA companies generally exempt
- Personal income tax
- 10%
- flat, plus capped social contributions
- VAT
- 20%
- Setup time
- About 1 week
- once documents are notarised; bank visit usually needed
- Yearly running cost
- ≈ €2,000
- accounting, annual accounts, tax return, registered address
- Minimum stay
- 183 days
- or centre of vital interests in Bulgaria
- Schengen
- Yes
- full member since 1 January 2025
- Currency
- EUR
- since 1 January 2026 (was BGN)
The Nerdy Index.
15 criteria, each scored 0–10 by a published formula or rubric. Pick who you are – the index re-weights what matters for you.
66Nerdy IndexFounder, moving with the company
65Company
66Residence
CompanyResidence
Company 65/100
Tax on distributed profits14.5% 6.4/10
Corporate tax plus dividend withholding on €100,000 profit paid out to a non-resident owner. Transparent entities (US LLC) pay nothing at company level – the owner pays at home, so they get a neutral 5.
Tax on reinvested profits10% 7.1/10
Tax while profits stay in the company (Estonia and Georgia: 0%).
Running cost≈ €2,000 / year 9.3/10
Typical yearly cost to keep a small trading company compliant: registered office, accounting, tax filings, audit if mandatory, government fees. Excludes local staff and office rent.
Context: Monthly bookkeeping, annual financial statements, tax return and registered address for a small company; audit only above size thresholds.
Setup speed & remote formation≈ 7 working days 7.2/10
Typical working days from signed documents to a registered company. +1 point (max 10) if it can be done fully remotely.
Context: The Registry Agency decides within a few working days; notarised signatures, the capital account and translations take the rest. Remote formation via power of attorney is possible but banks usually want to meet you.
Banking accessNerdy assessment 5/10
How easy it is for a foreign-owned company to open and keep a business account (local bank or regulated EMI) that works for international payments.
Our assessment: EU banks with SEPA and euro accounts, but in-person onboarding, detailed questions for foreign owners and extra checks while the country is grey-listed; easier once you live there.
Reputation & treaty network≈ 70 treaties · FATF grey list 5/10
Number of double tax treaties in force, minus penalties for blacklists that make banks and tax offices nervous: EU list of non-cooperative jurisdictions (Annex I), EU watchlist (Annex II), FATF grey list.
Context: Large treaty network and no EU listing (EU member), but still under FATF increased monitoring as of June 2026 – the FATF has scheduled an on-site visit, so removal is possible in 2026/27.
Substance burdenNerdy assessment 6/10
How much real presence (director, office, staff, board meetings) the company needs locally to be respected as tax resident there and to keep the bank happy. Higher score = lighter burden.
Our assessment: The model assumes the owner lives in Bulgaria and runs the company there; then a small office or even a registered address is enough. Run it from abroad and the 10% is at risk.
Residence 66/100
Personal tax for a new resident5% (dividends) 8.9/10
Effective tax a newly arrived resident pays on €100,000 of income from their own (foreign or local) company, using the best regime realistically available to an entrepreneur (non-dom, flat tax, territorial, special regime). Social security excluded.
Context: Resident owner paying out €100,000 of taxed profit as dividends: 5% final tax, no special regime needed (after 10% corporate tax at company level).
Residency accessNerdy assessment 5/10
How realistic it is for a non-EU entrepreneur to get a residence permit that also gives tax residency: requirements, cost, time, approval odds. EU citizens usually have it easier – noted in the reason.
Our assessment: EU citizens just register. Non-EU founders have a new digital nomad permit (about €31,000 income, max two years) or a business route that needs real investment or local jobs.
Minimum stay183 days 4/10
Days per year you need to spend there to keep your permit and your tax residency (whichever is stricter, using the most flexible programme).
Context: Tax residency needs more than 183 days in any 12 months or your centre of vital interests in Bulgaria – there’s no shortcut rule.
Cost of living52.5 (Sofia) · Sofia 6.6/10
Numbeo Cost of Living Index (excl. rent, New York = 100) for the city most expats choose.
Context: Numbeo cost of living excluding rent for Sofia; Plovdiv and Varna are cheaper still.
Safety61.5 (Sofia) · Sofia 6.2/10
Numbeo Safety Index for the same city (0–100, higher is safer).
Context: Safe by European city standards; petty theft and some traffic chaos are the usual complaints.
Rule of law & stability50th percentile 5/10
World Bank Worldwide Governance Indicators, Rule of Law percentile rank (0–100). Measures how predictable courts, contracts and property rights are.
Context: The weakest of the EU countries we cover: slow courts and corruption concerns, the trigger for the 2025/26 protests.
English in daily life & business594 (EF EPI 2025) 7.8/10
EF English Proficiency Index score. Countries where English is an official or everyday business language count as 700.
Context: High proficiency among younger people and in business; public offices and paperwork are in Bulgarian.
Mobility & long-term optionsNerdy assessment 7/10
What the residence gives you beyond the country: Schengen/EU access, permanent residence and citizenship path, passport strength of a future citizenship, dual citizenship allowed.
Our assessment: EU and Schengen; permanent residence after five years, citizenship only about five years after that and with Bulgarian language skills.
Numbers checked October 2026. Click any row for the formula, our reasoning and the source. How the Nerdy Index works
Residency & visa routes.
EU citizens: registration
EU/EEA/Swiss citizens register with the migration directorate after three months and get a long-term residence certificate. You need an address, health insurance and work, a business or sufficient funds.
Digital nomad residence permit
Since December 2025 for non-EU remote workers employed by or working for clients outside the EU/EEA: at least 50× the Bulgarian minimum wage (about €31,000) in the previous year, health insurance and housing. One year, renewable once.
Long-stay visa (D) for business
Non-EU founders can get a type D visa and residence permit through a Bulgarian company with real activity – typically a qualifying investment or local jobs under the Foreigners Act. Permanent residence after five years.
Why Bulgaria5
- 10% corporate and 10% personal income tax, 5% on dividends
- EU, Schengen and, since 2026, the euro
- Very low running costs and cost of living
- Simple rules – no refunds, elections or minimum taxes to babysit
- Fast, cheap internet and a growing tech scene in Sofia and Plovdiv
Watch out for5
- FATF grey list – some banks and counterparties run extra checks
- Administration largely in Bulgarian (and Cyrillic)
- Banks treat foreign-owned companies with open suspicion
- Tax hikes keep popping up in budget debates; elections come round often
- Winter smog in Sofia; uneven public healthcare
Bulgaria doesn’t do refunds, non-dom elections or flat-tax deals with a lawyer’s bow on top. It doesn’t need to. The boring default is already cheap: 10% corporate tax, 10% income tax and 5% on dividends. Pay out €100,000 of profit and the state keeps €14,500 – one of the lowest all-in rates in the EU for a company with no tricks at all.
It also joined the European core: full Schengen member since January 2025, euro since January 2026. You pay for all that in other currencies: admin in Bulgarian, banks that interview you like a suspect, and a spot on the FATF grey list that hasn’t gone away yet. Here’s the honest picture as of September 2026.
Is it for you?#
Bulgaria rewards people who actually move there. No 60-day trick, no remittance basis, no loophole to hunt for. You become tax resident with more than 183 days in a year or your centre of life in Bulgaria, and then you pay 10% on almost everything. Simple, predictable, cheap – three words most tax offices deleted from their vocabulary decades ago.
It fits well if you run an owner-managed service business – software, design, consulting, e-commerce – that pays out its profits, you want EU and Schengen without Western European costs, and you can live with a rougher edge in daily life. Sofia has a real tech scene, Plovdiv is charming and cheap, and the Black Sea and ski resorts are a few hours away.
It’s the wrong choice if you want to keep living in Germany or Austria and just “have a company” in Bulgaria. Management rules and CFC rules eat that plan for breakfast (see place of management). It’s also frustrating if you expect everything in English, or if your clients’ compliance teams break into a sweat at the words “grey-listed country”.
The company#
The vehicle#
Pick the EOOD (single-member limited company) or the OOD (two or more shareholders). Minimum capital is a symbolic amount, registration happens at the Commercial Register of the Registry Agency, and the whole thing takes about a week once signatures are notarised and the capital is paid in. Remote setup via power of attorney works, but expect notarisation, apostilles and a courier bill – and banks usually want to see your face anyway.
How profits are taxed#
- Corporate tax: 10% flat on taxable profit. No local business tax on top. Losses carry forward five years.
- Dividends: 5% final tax for resident individuals, and 5% withholding for non-residents unless a treaty reduces it. Dividends to companies resident in the EU/EEA are generally exempt.
- Salary: 10% flat income tax plus social contributions, which are capped at a maximum insurable income – high earners pay proportionally little.
Worked example: €100,000 profit, paid out to you as a Bulgarian resident.
| Step | Amount |
|---|---|
| Profit before tax | €100,000 |
| Corporate tax (10%) | –€10,000 |
| Dividend | €90,000 |
| Dividend tax (5%) | –€4,500 |
| Net to you | €85,500 |
| Total tax | €14,500 (14.5%) |
No asterisks, no application, no ruling. Most owner-managers combine a modest salary (to be insured) with dividends. Run both through the tax calculator.
Costs#
Bulgaria is the cheapest of the EU countries we cover to run a company: roughly €2,000 a year for bookkeeping, annual accounts, tax return and a registered address. Small companies don’t need an audit, which spares you the annual ritual of explaining your coffee receipts to a stranger. VAT registration is mandatory above the turnover threshold and often from day one for cross-border B2B services.
Banking#
Bulgarian banks are ordinary EU banks – SEPA, euro accounts since 2026, decent online banking. The friendliness ends at foreign-owned companies. The FATF grey list (since October 2023) adds another layer of compliance theatre, so expect an in-person meeting and questions about your clients, your source of funds and why on earth the company is in Bulgaria. It gets much easier once you live there and have a local address. Many founders start with an EU e-money institution; our banking guide covers the options.
Substance#
The cleanest setup is a Bulgarian company run by someone who lives in Bulgaria – usually you. Then a small office or even a registered address is fine. A Bulgarian company run from Munich is a German company for tax purposes, just with more paperwork and a translator on retainer.
Living there#
Residency routes#
| Route | For | Key requirements |
|---|---|---|
| Registration | EU/EEA/Swiss citizens | Register after 3 months; address, health insurance, income or work |
| Digital nomad permit | Non-EU remote workers | Clients/employer outside the EU; about €31,000 income last year (50× minimum wage), insurance, housing; 1 year + 1 renewal |
| Type D visa + residence (business) | Non-EU founders | Bulgarian company with real activity – qualifying investment or local jobs under the Foreigners Act |
| Permanent residence | Long-term residents | After 5 years of continuous legal residence |
The nomad permit is new (applications since December 2025) and capped at two years. Treat it as a door-opener, not a home. For non-EU founders, the business route needs a local lawyer and real plans, and the Foreigners Act changes often enough that last year’s blog post is already wrong.
Personal tax#
Residents pay 10% flat on worldwide income: salary, self-employment, rent. Dividends are taxed at 5%, and there’s no wealth tax. Social contributions apply to salary and self-employed income up to a monthly cap. There is no special regime for newcomers. Good: that also means no minimum tax, no application form and no expiry date to diarise.
Days#
You’re tax resident with more than 183 days in Bulgaria in any 12-month period, or if your centre of vital interests is there. If your old country still claims you, the treaty tie-breaker decides – read our tax residency guide before you plan a part-time life.
Daily life#
Numbeo’s cost of living index (excluding rent) for Sofia is 52.5, and rents are a fraction of Western Europe’s. Sofia has good cafés, a mountain on the doorstep (Vitosha) and a young tech crowd; Plovdiv is smaller and cheaper; Varna and Burgas give you the sea. Internet is fast and cheap. Private clinics in the cities are good and affordable, public healthcare is uneven. English is widespread among younger people (EF EPI 594), less so at government counters, where the forms and the patience both run out in Cyrillic. Downsides: winter smog in Sofia, patchy infrastructure outside the cities, and a political scene that has produced more elections in a few years than some countries manage in a decade.
The catches#
What can go wrong
01
Your old country.
Exit tax on company shares, extended tax liability and CFC rules can eat the savings – see exit tax and CFC rules.
02
FATF grey list.
Banks and business partners may run extra checks until Bulgaria is removed.
04
Politics.
Tax increases were proposed for 2026 and withdrawn; expect the debate to return.
05
Language.
Contracts, authorities and many forms are in Bulgarian – budget for translations.
06
Rule of law.
Courts are slow; choose partners and contracts carefully.
Step by step#
Moving your business to Bulgaria
Run the numbers
Compare salary vs dividends and your current setup in the tax calculator.
Plan your exit
Check exit tax, deregistration and CFC rules in your current country.
Rent a home
A lease is the basis for registration and shows your centre of life.
Register residence
EU citizens register after arrival; non-EU founders apply for the nomad permit or a type D visa before travelling.
Incorporate
Notarise documents, pay in capital, register the EOOD – about a week with a local provider.
Bank and bookkeeping
Open a Bulgarian account in person, hire a local accountant, register for VAT if needed.
FAQ#
Is 10% really all I pay?
On company profit, yes. Pay it out and you add 5% dividend tax – 14.5% combined. Salaries add social contributions up to a cap.
Does the FATF grey list affect me?
Mostly through banks and counterparties who do enhanced checks. It doesn’t change your taxes. The FATF said in June 2026 that Bulgaria has substantially completed its action plan; removal needs an on-site visit first.
Can I keep living in Germany and use a Bulgarian company?
Not effectively. If you manage it from Germany, Germany taxes it.
Do I need to speak Bulgarian?
Not for daily life in Sofia, but for admin a local accountant or lawyer is essential.
Bulgaria is the no-gimmick option: low rates for anyone willing to live there, and nothing for anyone who isn’t. Not sure whether it beats Cyprus or Greece for your case? Try the Jurisdiction Finder or book a strategy session. This guide is general information, not tax or legal advice.
Sources#
- National Revenue Agency (NRA)
- Registry Agency – Commercial Register
- Council of the EU – Bulgaria ready to use the euro from 1 January 2026
- European Commission – Schengen area
- PwC Worldwide Tax Summaries – Bulgaria, withholding taxes
- PwC Worldwide Tax Summaries – Bulgaria, individual income
- FATF – jurisdictions under increased monitoring, June 2026
- Euronews – Bulgaria withdraws 2026 budget draft after mass protests
- Numbeo – Sofia
Sources & fact check.
Every number on this page comes from one of these. Last checked October 2026. Tax law changes – confirm with a licensed advisor before acting. Nothing here is tax or legal advice.
- Official National Revenue Agency (NRA) tax residency, tax rates nra.bg
- Official Registry Agency – Commercial Register company registration registryagency.bg
- Official Council of the EU – Bulgaria adopts the euro from 1 January 2026 euro adoption consilium.europa.eu
- Official European Commission – Schengen area Schengen membership home-affairs.ec.europa.eu
- Advisor PwC Worldwide Tax Summaries – Bulgaria (withholding taxes) 5% dividend WHT, EU exemption, treaties taxsummaries.pwc.com
- Advisor PwC Worldwide Tax Summaries – Bulgaria (individual) 10% PIT, 5% dividend tax taxsummaries.pwc.com
- Index FATF – jurisdictions under increased monitoring (June 2026) grey list status fatf-gafi.org
- Index Numbeo – Sofia (cost of living & crime) cost of living, safety numbeo.com
- Index World Bank – Worldwide Governance Indicators rule of law percentile worldbank.org
- News Euronews – Bulgaria withdraws 2026 budget draft after protests withdrawn dividend tax increase euronews.com
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