5 Most Tax-Friendly Countries in Europe

4. Bulgaria

Corporate Income Tax Rate: 10%
Personal Income Tax Rate: 10%

Individuals in Bulgaria are subject to a flat personal income tax rate of 10% on their income from employment, self-employment, and other sources. Companies operating in Bulgaria are subject to a flat corporate income tax rate of 10% on their profits, compared with a flat 25% tax in France. Realized capital gains are taxed at the same rates as corporate income tax rates and dividends paid by Bulgarian companies to resident individuals and foreign shareholders are subject to a flat tax rate of 5%. In addition to this, the standard VAT rate is 20%. However, there is a reduced rate of 9% for certain goods and services, such as books, medicines, and hotel accommodations.