| Criterion | Cyprus | Bulgaria |
|---|---|---|
| EU | Yes, euro | Yes; euro accession to be watched separately |
| Corporate tax | 15%, IP Box 3% on qualifying IP profits | 10% standard rate |
| IP Box | Yes | No equivalent, established IP Box as a core offering |
| Business language | English is usual | Bulgarian / English depending on the setup |
| Substance | Director model in Larnaca | Local team and management to be reviewed in the same way |
Takeaway
Bulgaria can be interesting for operational EU production or simple trading companies with a local team. Cyprus stands out when English-language governance, the IP Box, relocation to Larnaca or a DACH-facing service model matter. 10% without fitting substance is not an advantage over 15% with credible management.
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