Tax Rate Comparison · 2026

Bulgaria vs Cyprus: Tax Rates Compared

Compare Bulgaria and Cyprus on income tax, corporate tax, VAT, capital gains, and social security. Top income tax: 10% (Bulgaria) vs 35% (Cyprus). Includes take-home pay estimates, special regimes, and expat guidance for 2026.

Country A
Bulgaria
Top income tax: 10%
Corporate: 10%
VAT: 20% · CGT: 10%
VS
Country B
Cyprus
Top income tax: 35%
Corporate: 12%
VAT: 19% · CGT: 0%

Full Tax Rate Comparison

Tax TypeBulgariaCyprusLower Rate
Top Income Tax10%35%Bulgaria
Bottom Income Tax10%0%Cyprus
Corporate Tax10%12.5%Bulgaria
VAT / GST20%19%Cyprus
Capital Gains Tax10%0%Cyprus
Social Security (Emp)13.8%8.3%Cyprus
Dividend Tax5%2.6%Cyprus
Tax Treaties6868Bulgaria

Take-Home Pay Estimate

Illustration — €100,000 gross annual income
Bulgaria Take-Home
€79,720
Cyprus Take-Home
€68,950
Annual Difference
+€10,770

Verdict

Overall Tax Burden
Bulgaria has a lower overall tax burden
Bulgaria scores lower on combined tax burden (10 vs 21). Top income tax: 10% vs 35% in Cyprus. Corporate: 10% vs 12.5%. For high earners and entrepreneurs, Bulgaria can offer meaningful tax savings.

Tax System: Territorial vs Worldwide

FactorBulgariaCyprus
Territorial TaxationNoYes
Digital Nomad VisaYesYes
Wealth TaxNoNo
CFC RulesYesYes

Special Regimes Available

CountryRegimeRate / BenefitDuration
CyprusNon-DomDividends & interest exempt17 years

Frequently Asked Questions

Which country has lower taxes: Bulgaria or Cyprus?
Bulgaria has a top income tax rate of 10% and corporate tax of 10%. Cyprus has 35% and 12.5% respectively. On €100k gross, estimated take-home is €79,720 in Bulgaria vs €68,950 in Cyprus. Actual liability varies with deductions, residency rules, and individual circumstances.
Is Bulgaria or Cyprus better for expats and digital nomads?
Bulgaria uses a worldwide tax system. Cyprus uses a territorial tax system and offers the Non-Dom (Dividends & interest exempt, 17 years). The best choice depends on income type, desired residency duration, and lifestyle preferences.
What is the corporate tax difference between Bulgaria and Cyprus?
The statutory corporate tax rate is 10% in Bulgaria and 12.5% in Cyprus. Effective rates can differ significantly due to deductions, loss carry-forwards, and R&D credits. Both countries may offer reduced rates or special regimes for SMEs or qualifying businesses.
Bulgaria Full Tax Guide Cyprus Full Tax Guide More Tax Comparisons Special Tax Regimes
Disclaimer: Rates shown are statutory rates for 2026. Effective rates vary with deductions and individual circumstances. Not tax advice.