Hungary vs Bulgaria
Bulgaria is £817 cheaper in year 1 and £701 a year cheaper after that.
| HungaryKft | BulgariaEOOD / OOD | |
|---|---|---|
| Costs | ||
| Minimum, year 1 | £931 | £114 |
| Minimum, per year after | £786 | £85 |
| Typical year 1 | £3,204 | £1,744 |
| Government fee | £0None. Registration and publication are free for a Kft | £24€28.12 online, €56.24 on paper |
| Indirect setup | £145–640 | £5–1,020 |
| Running per year | £786–4,836 | £85–2,330 |
| Share capital | HUF 3m | €1 |
| Rules | ||
| Directors | No local director | No local director |
| Remote setup | Through a providerA lawyer must file and countersign. Power of attorney works. You must name a delivery agent in Hungary. | Through a providerRemote by power of attorney. Your signatures are notarised and apostilled at home. |
| Audit | No audit below size thresholds | No audit below size thresholds |
| Time to form | 1 to 2 weeks | 1 to 3 weeks |
| Ease for foreign owners | 2/5 | 3/5 |
| Tax and banking | ||
| Corporation tax | 9%9%, the lowest headline rate in the EU, plus local business tax of up to 2% of gross margin. | 10%10% flat, one of the lowest in the EU. |
| Dividend withholding | None | 5%5% dividend withholding, none to EU companies. |
| VAT / GST | 27%VAT 27%, the highest in the EU. | 20% |
| Banking | 2/5Usually needs a visit. | 3/5Local banks usually want one visit. |
| All company setup fees in Hungary | All company setup fees in Bulgaria | |
Questions
Is Hungary cheaper than Bulgaria for company setup?
No. Bulgaria is cheaper, at least £114 in year 1 against £931 for Hungary.
Which is cheaper to run each year?
Bulgaria, at least £85 a year against £786 for Hungary.
Which needs a local director?
Neither. You can run a company in either without a local director.
Which is faster to set up?
Hungary, in 1 to 2 weeks. Bulgaria takes 1 to 3 weeks.
How does corporation tax compare?
Hungary: 9%, the lowest headline rate in the EU, plus local business tax of up to 2% of gross margin. Bulgaria: 10% flat, one of the lowest in the EU.
Sources: Hungarian National Legislation Database · PwC · Financera · Helpers Hungary · Registry Agency · Deloitte · Innovires