Comparisons

Side-by-side breakdowns with the trade-offs stated plainly, so you can tell which option fits your situation.

Bulgaria is not the only low-tax or company-formation option, and pretending otherwise would not help you. Here is how it lines up against the four alternatives people ask about most, with the trade-offs stated plainly and the honest take on who each one actually fits.

How the options compare

MetricBulgariaEstoniaCyprusPortugalUS LLC
Corporate tax10%0% until distributed12.5%21%0% (pass-through)
Dividend or personal tax5% dividendabout 22% on distribution0% dividend for non-doms28%, or a special regimetaxed where you live
Effective total, solo founderabout 14.5%about 22%about 12.5%25% or moreyour home rate
Formation costEUR 430 to 930EUR 265+EUR 1,500+EUR 1,000+USD 200 to 800
Monthly running costEUR 125 to 325EUR 59 to 259EUR 200 to 400EUR 150 to 350USD 50 to 200
Residency requirementYes, for the 10%No60-day non-dom optionYes, for the regimeNo
Banking difficultyModerateEasy, fintech-friendlyModerateModerateHard for non-residents

A high-level summary for orientation. Estonia and the US LLC have full, sourced breakdowns linked below; Bulgaria's numbers are detailed across our guides. Cyprus and Portugal are approximate and included for context.

Who each option fits

Bulgaria fits people who will genuinely relocate and want the lowest simple rate on both the company and the money they take out: 10% corporate tax and a 5% dividend, with capped social contributions. The catch is that you have to actually move, and the admin is in Bulgarian. Start with company formation and taxes.

Estonia fits location-independent founders who want an EU company they run fully online and are content to be taxed where they live. e-Residency is a great administration tool, but it is not residence and it does not lower your personal tax. See Bulgaria vs Estonia.

Cyprus fits higher earners who want the non-dom regime and can spend real time there. Setup and running costs are higher, so the effective rate is only competitive above a certain income.

Portugal fits people who want lifestyle first and will accept a higher headline tax, unless they qualify for a special regime. It is a place to live more than a low-tax play the way Bulgaria is.

A US LLC fits non-US founders who need a US-facing entity and understand two things: it does not reduce the tax you owe at home, and banking is the hard part. See Bulgaria vs US LLC.

Read the full comparisons

Common questions