Country profile
Bulgaria
Best : For freelancers and small companies who want the EU's lowest tax (10%) with the euro and low living costs.
A Balkan country in the EU since 2007 (about 6.4 million people), capital Sofia, on the Black Sea. It joined Schengen in 2025 and the eurozone on 1 January 2026. 10% corporate tax, a 10% flat income tax and 5% on dividends: the lowest taxes in the EU, with some of the bloc's lowest living costs. Slow administration and corruption remain notable.
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International rankings
The main public indices scoring business climate, economic freedom, corruption, peace and domestic safety. Figures copied from the official editions; a weak rank shows where to look closer.
| Index | Score | Rank |
|---|---|---|
| Doing Business 2020Banque mondiale / World BankScore 0–100, rank out of 190 economies (1 = best). | 72.0 | #61 / 190 |
| B-READY 2025Banque mondiale / World BankThree pillars scored 0–100 (regulatory framework, public services, operational efficiency). No overall rank: the World Bank publishes a quintile per pillar across 101 economies. |
| |
| Index of Economic Freedom 2026Heritage FoundationScore 0–100, rank out of 184 countries (1 = freest). | 68.9 | #38 / 184 |
| Corruption Perceptions Index 2025Transparency InternationalScore 0–100 (100 = very clean), rank out of 182 countries. | 40 | #84 / 182 |
| Global Peace Index 2026Institute for Economics & PeaceScore 1–5 (lower = more peaceful), rank out of 163 countries. | 1.628 | #26 / 163 |
| GPI 2026 — Societal Safety and SecurityInstitute for Economics & PeaceScore 1–5 (lower = safer), rank out of 163 countries (1 = safest). | 1.735 | #32 / 163 |
- Doing Business 2020 : Last published edition (data as of May 2019). The World Bank discontinued the series in 2021 after data irregularities: read it as a historical benchmark.
- B-READY 2025 : Successor to Doing Business. Sample averages: 66.3 / 54.0 / 60.0. The 2026 edition (over 160 economies) is due by end-2026.
- Index of Economic Freedom 2026 : Hong Kong has not been graded separately since 2021 (folded into China).
- Corruption Perceptions Index 2025 : Published February 2026.
- Global Peace Index 2026 : Overall rank: conflict, domestic safety and militarisation. Day-to-day safety is the next row. Malta and Hong Kong are not covered.
- GPI 2026 — Societal Safety and Security : Appendix C of the 2026 GPI: homicide, violent crime, terrorism and instability. Excludes armed conflict and militarisation. Malta and Hong Kong are not covered.
Geopolitical risk
Tax by profile
Tax and contributions actually paid on a reference case, for a newcomer who is tax resident in 2026. Where a special regime is open to them, it is applied and flagged. The score out of 10 follows from the effective rate.
Rentier
9.5/10
Effective rate ≈ 2.6%
- Dividends 5%: €2,000
- Interest from EU banks and gains on EU regulated markets exempt
- Mandatory health insurance on the minimum base: about €600
Employee
7/10
Effective rate ≈ 15%
- Employee contributions 13.78% capped (€2,111.64 then €2,300 a month): €3,622
- Flat 10% tax: €5,638
Entrepreneur
6.5/10
Effective rate ≈ 16.5%
- Corporate tax 10%: €10,000
- Dividends 5%: €4,500
- Owner-manager insured on the minimum base: about €1,900
Reference cases and scoring
- Rentier: €100,000 a year from a foreign portfolio (€40,000 dividends, €20,000 interest, €40,000 gains on listed shares), no other activity.
- Employee: €60,000 gross a year paid by a local employer, single with no children. Employee contributions included, employer share excluded.
- Entrepreneur: €100,000 profit from a small local business, fully paid to the owner through the most common route (company and dividends, or sole trader).
Score = 10 minus 0.2 per point of effective rate (0% gives 10, 25% gives 5, 50% or more gives 0), rounded to the half point. Foreign withholding taxes and employer contributions are not counted.
Indicative figures as of October 2026 · Main source : nra.bg. Not tax advice.
Business: incorporating
Bulgaria has the EU’s lowest tax burden: 10% CIT, 5% on dividends, a flat 10% income tax. An EOOD is formed with €1 of capital and invoices in euros since 2026. The trade-off: slow administration and banks stricter than people expect.
10%
Corporate tax
$150–$1,200
Setup
USD, indicative
$1,000–$3,000
Per year
USD, indicative
7/10
Ease
Ranking
6.5/10
Banking
Ranking
5/10
CFC
CFC ATAD
Among the cheapest EU setups (~€100 registry, €1 capital). Year one often ~€1.5–3k with accounting (~€80–150/month). 10% CIT is attractive: structural cost stays low at low volume.
Who it fits
- Freelancer or small agency actually moving to Bulgaria who wants 10% + 5% on exit
- Founder wanting an EU company in euros with one of the bloc’s lowest structural costs
- European B2B services where EU credibility matters more than the country’s image
The real drawbacks
- French or German tax residents keeping their life at home: effective management and CFC catch the company
- Need for fast, fully English-speaking administration
- Mailbox setups: Bulgarian banks ask for real activity and real clients
Real estate: investing
No real-estate row for this country in the Ranking yet: no yield or price is shown rather than inventing one.
Moving there: living and residence
Bulgaria draws freelancers and families who want to live in the EU with the euro, a 10% income tax and some of the Union’s lowest rents. Sofia, Plovdiv or the Black Sea: cost of living, taxes and contributions, schools, healthcare and paperwork.
4.9/10
Liberty score
equal weights
10%
Income tax
0%
Inheritance
Restricted
Homeschool
Residence routes
- EU/EEA citizen: residence certificate: Long-stay residence certificate (up to 5 years), then permanent residence after five years
- Non-EU: company manager or self-employed: One-year extended residence permit, renewable while the activity is maintained
- Non-EU: digital nomad visa: One-year stay, renewable once
- Permanent residence through investment: Permanent residence permit
Reference cities
- Sofia (cost low)
An affordable capital with Vitosha mountain 20 minutes away and a solid IT sector. Polluted winter air, pavements and roads in poor shape, aggressive driving. - Varna (cost low)
A pleasant Black Sea city with a lively centre and an urban beach. Touristy in summer, very quiet in winter, few direct flights off season.
Indicative bands (admin fees, certified translations, insurance). Investment thresholds are set in leva by law and converted at the fixed euro rate (BGN 1.95583 per €1). Timelines vary by nationality.
All residence routes, steps and costs · Daily life: cost of living, family, FAQ
Go deeper on Bulgaria
The 16 reference countries
Each country fits a different profile. Pick the one that matches yours.
Indicative Liberty Stack data · Methodology · Rankings : Doing Business 2020, B-READY 2025, Index of Economic Freedom 2026, Corruption Perceptions Index 2025, Global Peace Index 2026, GPI 2026 — Societal Safety and Security.