🇧🇬Bulgaria vs Hungary🇭🇺
Checked November 4, 2026 · How we score
| Metric | Bulgaria | Hungary |
|---|---|---|
| Corporate tax | 10% | 9% |
| Top personal tax | 10% | 15% |
| Capital gains tax | 10% | 15% |
| VAT | 20% | 27% |
| Usual entity | EOOD / OOD (limited liability company) | Kft (limited liability company) |
| Setup cost | $1,200–$2,800 | $1,500–$3,500 |
| Yearly cost | $1,200–$3,500 | $1,800–$4,500 |
| Time to form | 7 days | 7 days |
| Remote setup | Yes | Yes |
| Banking difficulty | 3/5 | 3/5 |
| Digital nomad visa | No | Yes |
| Our score | 6.8/10 | 5.8/10 |
Choose Bulgaria if…
- →Startups wanting the lowest headline tax rates in the EU
- →Dev outsourcing and shared service centres
- →Freelancers able to use the 10% flat tax
Choose Hungary if…
- →Small companies that can use KIVA
- →Service and software companies seeking low corporate tax
- →Companies serving Central European markets
Questions people ask
Is Bulgaria or Hungary better for a new company?
Bulgaria has the lower overall tax burden (10% corporate, 10% top personal). Bulgaria is also easier and cheaper to set up and run. Overall, Bulgaria scores 6.8/10 on our index vs 5.8/10.
What is the corporate tax rate in Bulgaria?
A flat 10%, the lowest headline rate in the EU. A further 5% tax is withheld on dividends paid to individuals and non-EU companies, giving a combined burden of about 14.5%.
Can a foreigner open a company in Bulgaria remotely?
Yes. Foreigners can register an EOOD/OOD through a lawyer with a notarised power of attorney, so a visit is not required. You need a Bulgarian registered address, and registration with the Commercial Register takes about 3–7 days.
What is the corporate tax in Hungary?
9%, the lowest in the EU. Companies also pay local business tax of up to 2% of gross margin and a 0.3% innovation contribution, so the real burden is closer to 11%–12%.
Can a foreigner open a Kft in Hungary?
Yes. A lawyer countersigns the company documents, and non-residents can sign by power of attorney. You need a Hungarian registered office and HUF 3 million in share capital. The Company Court registers in about 5–10 days.
More comparisons
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.