We have looked after people who moved to Bulgaria from Germany, Austria and Switzerland for years, and we see both sides: those who form their second company after two years, and those who go back after one winter. The difference rarely lies in the taxes. It lies in whether the expectations before the move were honest. So this article starts with the drawbacks.
The drawbacks
The language. Bulgarian is a Slavic language written in Cyrillic. In Sofia, Varna and Plovdiv you get by in English day to day; in government offices, with tradespeople and in the countryside you do not. Notices, contracts and forms are in Bulgarian, and an official document is valid only in its Bulgarian version. Anyone who does not learn Bulgarian stays dependent on translators and advisers in many situations.
The bureaucracy. Bulgaria is digitising fast but unevenly. The tax authority НАП, the Commercial Register and the social security institute НОИ work largely electronically; the migration authority, the municipality and vehicle registration often require appearing in person, paper and stamps. Deadlines are short, and missing one brings a fine, not a reminder letter.
Healthcare. The statutory health insurance НЗОК covers basic care, but public hospitals are unevenly equipped and waiting times for specialists are long. Those who can afford it go private, and compared with Germany that is inexpensive. For the chronically ill and for families with small children this is a point to settle before the move, not after.
Wages. The statutory minimum wage has been 620.20 euro a month since 1 January 2026, and outside the IT sector and Sofia even skilled salaries are far below German levels. Bulgaria is a good country for people who bring their income with them or build a business here. It is not a good country in which to start over as an employee.
Infrastructure and daily life. The motorways are good, the country roads are not. Winters inland are cold and long; Sofia sits at 550 metres. The rental market outside the big cities is thin, and property purchases need a thorough check of the title history. Bulgaria still ranks near the bottom of the EU in corruption indices, which you rarely notice day to day but must factor in for proceedings with authorities and courts.
The distance. Two to three hours’ flight to Germany, with good connections from Sofia and, in summer, from Varna. Too far for weekend visits to your parents; fine for a life with four trips home a year.
The advantages
The taxes. A flat 10% income tax, 10% corporate tax, 5% on dividends. From 100,000 euro of company profit, 85,500 euro remain after corporate tax and distribution. No progression, no trade tax, no solidarity surcharge.
The euro. Since 1 January 2026 the euro has been the national currency. No conversion, no exchange-rate risk, German and Bulgarian accounts in the same currency.
Schengen and the EU. Since 1 January 2025 there have been no border checks, including at the land borders. As an EU citizen you need neither a visa nor a work permit, only a registration with the migration authority for stays over three months.
The cost of living. Rent, restaurants, services and tradespeople cost markedly less than in Germany. Imported goods, electronics and cars cost the same. Those who bring their income live noticeably better here; those who earn it here notice little of the difference.
Company formation. An EOOD, the Bulgarian single-member limited company, comes into existence with one euro of share capital in a few days. The ongoing obligations are manageable if they are set up properly from the start.
The country itself. The Black Sea coast, mountains, four seasons, a growing international scene in Sofia and Varna, and a pace of life many people no longer want to give up after the first year.
Bulgaria compared
People who emigrate for tax reasons usually compare Bulgaria with Cyprus, Malta, Estonia or Dubai. Briefly and simplified, as of 2026: Cyprus taxes company profits at 12.5% and attracts newcomers with a special regime, but demands considerably more substance and cost. Malta has a nominal 35% and reaches low rates only through a refund procedure that needs effort and advisers. Estonia taxes only distributed profits, but at the full rate. Dubai lies outside the EU, with everything that means for residence rights, treaties and banks. Of these options Bulgaria is the country with the simplest system and the lowest running costs, and the only one with 10% without conditions. It is also the one where you get least far on English alone.
What is actually required for the taxes
The 10% applies to people who live in Bulgaria and run their business from here. Anyone who stays living in Germany and merely registers a Bulgarian company gains nothing, because the company then remains taxable in Germany. Three things decide:
- The German residence has to end in fact. Not just the registration, but the dwelling. What the 183-day rule means here and what it does not is explained in The 183-Day Rule, Tax Residence and the Double Taxation Treaty.
- Existing German shareholdings are sorted out before the move. Anyone holding at least 1% of a GmbH pays tax on the increase in value on leaving. All of it in German Exit Tax: What Applies When You Move to Bulgaria.
- The company is run from Bulgaria. Office, decisions, bookkeeping and manager here. The process is described in our guide to company formation in Bulgaria for people relocating.
Consultax accompanies people relocating, in German and English, from the first question to ongoing bookkeeping; what that covers is on German-Speaking Accountant in Bulgaria. If you want to know whether the move adds up for you, talk to us. We will tell you if it does not.