Guide
Bulgaria compared
By Svetlana Junge · updated
Comparison tables online almost always end with the provider winning. This one does not. Bulgaria is not ahead everywhere, and the cases where another location fits better are set out here alongside the rest.
The short answer
Bulgaria is not ahead everywhere. Anyone retaining profits in the company does better in Hungary at 9 per cent corporate tax. Anyone distributing high profits while resident in the state of the seat arrives at a calculated 5 per cent in Malta. Bulgaria's strength lies elsewhere: one company, one legal system, one rate, no second tier and no refund mechanics, together with the lowest ongoing compliance costs of the European Union states compared here. On 100,000 euros of profit distributed in full to an individual, 85,500 euros remain in Bulgaria and 51,430 in Germany. Georgia would come to 78,250 euros after tax and running costs, but lies outside the European Union.
The overview
Same starting figure, different reference bases. Where a figure includes running costs, it says so; otherwise the comparison would be skewed.
| Location | Left from 100,000 euros of profit | In favour | Against |
|---|---|---|---|
| Bulgaria | 85,500 euros (14.50 % tax) | One rate, one legal system, no second tier. Lowest ongoing compliance costs of the EU states compared. The euro as currency. | Not the cheapest choice where profits are retained. Requires an actual move of the centre of life. |
| Hungary | cheaper where profits are retained (9 % corporate tax) | The lowest corporate tax rate in the European Union. Ideal where profits stay in the company. | The advantage flips the moment profits are distributed. Its own national currency. |
| Malta | a calculated 5 % on distribution while resident in the state of the seat | On paper the lowest rate in this selection where high profits are distributed. | 35 per cent first; 30 points come back only through a refund claim, in practice after six to nine months. A Maltese tax number of your own is required. How German tax offices treat the procedure is not conclusively settled. Island location. |
| Georgia | 78,250 euros after tax and running costs | A strong location, and the figures hold up. | Outside the European Union: no free movement of capital, no freedom of establishment, no Court of Justice of the European Union as a final instance, no automatic recognition of documents across the EU. The currency is the lari, so exchange-rate risk on every distribution. |
| Germany | 51,430 euros (48.57 % tax) | No move, no change, no structure. | The heaviest burden in this selection. The trade tax multiplier is municipal, from 200 to over 900 per cent. |
The Bulgarian and German figures are pure tax burden on full distribution to an individual; the Georgian figure includes running costs. The Bulgarian column assumes the shareholder is resident there and the company is managed from there.
- Hungary: cheaper as long as nothing is distributed
- Nine per cent corporate tax is the lowest rate in the European Union, and anyone retaining profits in the company does better with it than in Bulgaria. The advantage flips the moment profits are distributed. So anyone building and reinvesting should look at Hungary. Anyone wanting to live off the company calculates differently.
- Malta: five per cent you first have to claim back
- The Maltese company pays 35 per cent first. Only then does the shareholder claim 30 points back through a refund application. That requires a Maltese tax number of their own, an application, and in practice a wait of six to nine months for the money. During that time the capital sits with the Maltese revenue, not with them. On top of that, how German tax offices treat this procedure is not conclusively settled. Once the running costs of such a structure are counted in, the lead over Bulgaria melts to a few thousand euros.
- Georgia: the figure holds, the framework is missing
- Georgia is a strong location and the figures stand up. The difference lies elsewhere. Georgia is not in the European Union. There is no free movement of capital, no freedom of establishment, no Court of Justice of the European Union as a final instance and no automatic recognition of documents across the EU. The currency is the lari, which means exchange-rate risk on every distribution. And the political situation can change faster than a company agreement. Anyone able to carry those points will find a good location there.
- Cyprus and the Emirates: why there are no figures here
- Both are named often, and both are absent from the table. The reason is simple: we have no verified figures of our own for them, and taking rates from someone else's overview would be exactly what this page sets out to avoid. Special regimes for newcomers are also changed, closed or replaced regularly; yesterday's table can be wrong today. If you are seriously examining these locations, demand the collection date behind every figure and an answer to whether the regime is still open to newcomers today.
- What actually sets Bulgaria apart
- Not the rate but the simplicity. One company, one legal system, one rate. No second tier, no refund mechanics, no audit requirement for small companies, and the lowest ongoing compliance costs of the European Union states compared here. Added to that, the euro as currency since 1 January 2026, so no exchange-rate risk between the business and a distribution into the rest of the euro area. At smaller profits, structure costs elsewhere consume the advantage anyway.
- When Bulgaria is not the right choice
- If you intend to retain profits in the company permanently, Hungary is the better calculation. If you distribute very high profits and are willing to carry the Maltese refund mechanics along with the wait, Malta can be cheaper. And if you do not genuinely want to move your centre of life, no location helps you: German tax liability then continues, and the German column applies.
What this page is not
This comparison is general information and does not replace advice in an individual case. We provide neither tax nor legal advice and advise on Bulgaria only. The details on the other locations serve orientation, not decision. Every personal decision belongs with a tax adviser in Germany and one in the destination country. No warranty is given.
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