Bulgaria and Greece are neighboring EU member states that attract very different types of entrepreneurs. Bulgaria offers the EU's lowest flat corporate tax at 10% and a combined CIT-plus-dividend rate of just 15%. Greece charges 22% corporate tax but counters with a powerful non-dom regime (Article 5A) that caps foreign-source income at a flat EUR 100,000 per year. Both countries charge the same 5% dividend withholding tax — one of the few areas where they are identical.
This article compares both countries head-to-head across corporate tax, dividends, personal income, social security, company formation, VAT, residency, non-dom regimes, cost of living, and golden visa programs. We use verified 2026 figures throughout, including Greece's updated personal income tax brackets under Law 5246/2025.
Quick Comparison Table
The table below summarizes the key differences. We expand on each row in the sections that follow.
| Factor | Bulgaria | Greece |
|---|---|---|
| Corporate tax (CIT) | 10% flat | 22% flat |
| Small business CIT rate | 10% (same rate for all) | 22% (no reduced rate) |
| Dividend WHT | 5% | 5% |
| Combined CIT + dividend | 15% | ~25.9% |
| Personal income tax | 10% flat | Progressive: 9%-44% |
| Freelancer effective tax | 7.5% | Progressive (no special regime) |
| Social security (total) | ~32-33% | 36.16% |
| Employer social security | ~18.9-19.6% | 22.29% |
| Employee social security | ~13.78% | 13.87% |
| VAT standard rate | 20% | 24% |
| Company min. capital | EUR 1 (EOOD) | EUR 1 (IKE) |
| Company formation time | 1-3 days | 1-10 days |
| Company state fees | EUR 28 (electronic) | EUR 18-60 |
| Tax residency rule | 183 days + Migration Dir. | 183 days |
| Non-dom regime | Not available | Art. 5A: EUR 100K flat tax |
| Golden visa (non-EU) | No comparable program | EUR 400K-800K real estate |
| Currency | EUR (since Jan 2026) | EUR (since 2001) |
| Schengen member | Yes (full, Jan 2025) | Yes |
| DTT dividends rate | 10% (BG-GR treaty) | |
Corporate Tax: Bulgaria 10% vs Greece 22%
Bulgaria has maintained a 10% flat corporate tax since 2007 — the lowest in the EU, tied only with Hungary. There is no bracket, no minimum turnover tax, no complexity. Every company — from a one-person EOOD to a large enterprise — pays 10% on taxable profit.
Greece applies a flat 22% corporate income tax on all companies, regardless of size. Unlike some EU countries, Greece does not offer a reduced CIT rate for small businesses or startups. A company earning EUR 50,000 in profit and a company earning EUR 5 million both pay 22%.
On EUR 100,000 in corporate profit, the difference is stark: EUR 10,000 in Bulgaria vs EUR 22,000 in Greece — more than double.
Key insight: For standard trading and services companies with no special IP or holding structures, Bulgaria's 10% CIT provides a structural advantage that Greece cannot match. The 12-percentage-point gap is one of the largest between any two neighboring EU states.
Dividends: Both Countries Charge 5%
Here is the surprise: both Bulgaria and Greece apply a 5% withholding tax on dividends distributed to individual shareholders. This is one of the few areas where the two countries are identical.
However, the combined effect is very different because of the corporate tax that applies before dividends:
| Metric | Bulgaria | Greece |
|---|---|---|
| Corporate profit | EUR 100,000 | EUR 100,000 |
| CIT (10% vs 22%) | - EUR 10,000 | - EUR 22,000 |
| After-tax profit | EUR 90,000 | EUR 78,000 |
| Dividend WHT (5%) | - EUR 4,500 | - EUR 3,900 |
| Net to shareholder | EUR 85,500 | EUR 74,100 |
| Effective combined rate | ~15% | ~25.9% |
On EUR 100,000 in profit, you keep EUR 11,400 more in Bulgaria than in Greece. Over five years, that difference compounds to over EUR 57,000 on the same income level.
Personal Income Tax
Bulgaria applies a flat 10% personal income tax on all salary and employment income, with no brackets and no tax-free allowance for most earners.
Greece uses a progressive system under Law 5246/2025 with six brackets:
| Taxable Income (EUR) | Greece Tax Rate |
|---|---|
| 0 - 10,000 | 9% |
| 10,001 - 20,000 | 20% |
| 20,001 - 30,000 | 26% |
| 30,001 - 40,000 | 34% |
| 40,001 - 60,000 | 39% |
| 60,001+ | 44% |
For low income earners (under EUR 10,000), Greece's 9% rate is actually slightly lower than Bulgaria's flat 10%. But the advantage disappears quickly. At EUR 30,000 in annual salary, the effective Greek rate is approximately 16.3%, already higher than Bulgaria's flat 10%. At EUR 60,000, the effective Greek rate climbs to roughly 27%. At EUR 100,000, it exceeds 33%.
Freelancers
Bulgarian freelancers (sole traders or svobodna profesiya) benefit from a 25% standard expense deduction on gross income. The remaining 75% is taxed at the 10% flat rate, resulting in an effective income tax rate of just 7.5%. Greece offers no comparable flat-rate deduction for freelancers — self-employed individuals are taxed on net income at the progressive rates above.
Social Security Contributions
Social security is a significant cost in both countries, but Greece is substantially more expensive:
| Component | Bulgaria | Greece |
|---|---|---|
| Employer contribution | ~18.9-19.6% | 22.29% |
| Employee contribution | ~13.78% | 13.87% |
| Total | ~32-33% | 36.16% |
| Maximum insurance base | EUR 2,352/month | No comparable cap for most funds |
Bulgaria's key advantage is the maximum monthly insurance base of EUR 2,352. Once your salary exceeds this amount, no additional social security is charged. Greece's social security system does not provide a comparable cap for most contribution categories, meaning high earners pay proportionally more.
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Get Your Free Comparison →Company Formation: EOOD vs IKE
Both countries offer accessible limited liability company structures with EUR 1 minimum capital:
| Feature | Bulgaria EOOD | Greece IKE |
|---|---|---|
| Full name | Eднолично OOД | Idiotiki Kefalaiouchiki Etaireia |
| Minimum capital | EUR 1 | EUR 1 |
| State fees | EUR 28 (electronic) | EUR 18-60 |
| Registration time | 1-3 business days | 1-10 business days |
| Legal fees (lawyer) | EUR 700-999 + VAT | Varies; often EUR 500-1,500 |
| Registered address | Required (separate cost) | Required |
| Corporate bank account | ~1 week KYC, EUR 100-500 | Similar timeline |
| Remote formation | Yes (PoA + apostille) | Yes (via e-YPES digital service) |
| Annual audit | No (small companies exempt) | No (small IKEs exempt) |
Both structures are practical for solo entrepreneurs. The Bulgarian EOOD is marginally faster to register and is backed by a simpler overall tax framework. The Greek IKE benefits from Greece's digital one-stop-shop (e-YPES) for electronic registration. For Bulgaria, note that the specimen signature and any Power of Attorney both require notarization for remote registration.
VAT: 20% vs 24%
Bulgaria charges 20% standard VAT with a mandatory registration threshold of EUR 51,130 in annual taxable turnover.
Greece charges 24% standard VAT — one of the highest rates in the EU. As of January 2026, Greek islands benefit from a 30% discount on VAT rates, meaning the effective standard rate on islands is approximately 16.8%. This discount was introduced to support island economies.
Both countries participate in the EU-wide SME VAT scheme, which allows small enterprises with total EU-wide turnover under EUR 100,000 to sell across the EU without charging VAT.
Residency: Migration Directorate vs 183-Day Rule
For EU citizens, establishing tax residency works differently in each country.
Bulgaria
EU citizens who wish to stay in Bulgaria for more than three months must register with the Migration Directorate (not the police, not GRAO). There are four grounds for an EU citizen's long-term residence certificate:
- Company owner — registered as owner/manager of a Bulgarian company
- Employee — employed by a Bulgarian company
- Self-sufficient — proof of EUR 5,100 in funds and health insurance
- Family member — of an EU citizen already residing in Bulgaria
The residence card fees are modest: EUR 7, EUR 18, or EUR 36 depending on the card type (these are state fees; legal fees are separate). Your LNCH (personal identification number for foreigners) is issued by the Migration Directorate as part of the registration process. A landlord declaration under Art. 20a of the EU Citizens Act is required to confirm your Bulgarian address.
Greece
Greece uses the standard 183-day rule for tax residency. If you spend 183 days or more in Greece in a calendar year, you are considered a Greek tax resident. EU citizens can register for a residence certificate at the local Aliens Bureau. The process is relatively straightforward for EU nationals under free movement rules.
Double Tax Treaty: The Bulgaria-Greece DTT (in force) sets maximum withholding rates of 10% on dividends, 10% on interest, and 10% on royalties for cross-border payments between the two countries. If you maintain business interests in both countries, the treaty prevents double taxation.
Non-Dom Regimes
Greece: Article 5A Non-Dom
Greece's Article 5A regime is one of the most generous non-dom programs in Europe. Qualifying individuals pay a flat EUR 100,000 per year on all foreign-source income, regardless of the amount. Greek-source income is taxed normally.
To qualify, you must:
- Have been non-resident in Greece for at least 7 of the previous 8 years
- Make an investment of at least EUR 500,000 in Greek real estate, businesses, or government bonds
- Apply by March 31 of the relevant tax year
The regime lasts up to 15 years. For ultra-high-net-worth individuals with substantial foreign-source income (well above EUR 1 million per year), the effective tax rate under Article 5A can drop below 5%.
Bulgaria
Bulgaria does not offer a non-dom or special tax regime for high-net-worth individuals. Instead, it relies on its universally low flat rates — 10% CIT, 5% dividend, 10% PIT — that apply to everyone equally. For most entrepreneurs earning under EUR 500,000-1,000,000 per year, Bulgaria's flat rates are more favorable than Greece's non-dom regime (which requires a EUR 100,000 minimum payment regardless of income).
Break-even analysis: Greece's Article 5A regime becomes more cost-effective than Bulgaria's standard rates only when your foreign-source income significantly exceeds EUR 1 million per year. Below that level, Bulgaria's flat 10% personal income tax or 15% combined corporate rate is cheaper than paying EUR 100,000 flat tax plus Greek social security plus the EUR 500,000 investment requirement.
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Get Personalized Advice →Cost of Living
Bulgaria is significantly cheaper than Greece for everyday living costs:
- Overall: Athens is approximately 15% more expensive than Sofia (excluding rent), according to Numbeo and Expatistan data for 2026.
- Restaurants: Dining out in Sofia is roughly 18% cheaper than in Athens.
- Rent: A one-bedroom apartment in central Sofia: EUR 500-800/month. In central Athens: EUR 600-1,000/month. Thessaloniki is closer to Sofia's levels.
- Groceries: Generally 10-20% cheaper in Sofia than Athens.
- Utilities: Comparable in both capitals, though heating costs can be higher in Sofia during winter.
The cost-of-living gap narrows if you compare Greek islands (which can be cheaper outside peak season) with Sofia, but the Bulgarian capital remains one of the most affordable EU capitals for expats and entrepreneurs.
Golden Visa Programs
Greece operates one of Europe's most popular golden visa programs for non-EU citizens. The minimum investment is EUR 400,000 to EUR 800,000 in real estate, depending on the zone:
- EUR 800,000: Central Athens, Thessaloniki center, Mykonos, Santorini, and other high-demand areas
- EUR 400,000: Other regions of Greece
The golden visa grants residency rights (not work rights) and can lead to permanent residency and eventually Greek citizenship after 7 years. It is popular with investors from the Middle East, China, and South Asia.
Bulgaria does not offer a comparable golden visa program for non-EU citizens. Bulgaria's residency-by-investment options are more limited and less established than Greece's program.
When to Choose Bulgaria vs Greece
Choose Bulgaria if:
- You want the lowest possible corporate tax in the EU (10%)
- Your annual income is under EUR 500,000 and you want simplicity
- You are a freelancer seeking the 7.5% effective rate
- You prioritize low cost of living and affordable professional services
- You want a flat, predictable tax system with no brackets or complexity
- You need a company registered quickly (1-3 days) with minimal bureaucracy
Choose Greece if:
- You have foreign-source income exceeding EUR 1 million/year and qualify for Article 5A non-dom
- You are a non-EU citizen seeking a golden visa through real estate investment
- You value Mediterranean lifestyle, island living, and tourism infrastructure
- You need a Greek-speaking market presence or serve Greek clients
- You have an investment of EUR 500,000+ and want to combine residency with tax optimization
Our view: For the majority of EU entrepreneurs, digital nomads, freelancers, and small-to-medium business owners, Bulgaria offers a more favorable overall package. The 10% flat CIT, 15% combined rate, 7.5% freelancer rate, and significantly lower cost of living make it the pragmatic choice. Greece's advantages are concentrated in the non-dom regime (for very high earners) and the golden visa (for non-EU investors).
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Disclaimer: This article provides general guidance based on current legislation as of April 2026. Greek tax rates reflect Law 5246/2025. Bulgarian rates reflect current legislation. Actual tax obligations depend on individual circumstances, applicable double tax treaties, and specific income sources. This article does not constitute legal or tax advice. For personalized guidance, consult a qualified tax advisor in the relevant jurisdiction. Last updated: April 7, 2026.