Bulgaria or Portugal: Weighing Taxes, Golden Visas, and Real Estate for Executives

Published on June 16, 2026 and written by Cyril Jarnias

For a business leader looking to secure and diversify their wealth in Europe, the question is no longer just “which country has the lowest taxes?” In 2026, it’s about combining several dimensions: overall taxation, political stability, quality of residency programs, cost of living, real estate market, and the ability to pass on wealth.

Two radically different strategies for a business leader

As soon as you look at the numbers, a clear contrast emerges. Bulgaria combines a flat 10% tax, low cost of living, and a new investment-based residency program via funds. Portugal, meanwhile, remains a champion of quality of life but has tightened both its taxation and access conditions through visas.

Overall taxation: Bulgaria’s 10% machine vs. Portugal’s bracket factory

In Bulgaria, the logic is simple: almost everything is taxed at 10%, whether income tax or corporate tax. No progressive brackets, no rates climbing to 45% or 50%. For a leader used to Western Europe’s complex systems, the simplicity is almost disorienting.

In 2026, Bulgaria applies:

– 10% on corporate profits;

– 10% on personal income (salaries, freelancing, rents, regular capital gains);

– Only 5% on dividends (with a proposal to raise it to 10%, but even then the country remains competitive);

– No wealth tax, no net worth tax.

In Portugal, the scene is quite different. The former NHR (Non-Habitual Resident) regime, which allowed low taxes on certain foreign income, has been closed to new entrants since 2024. It has been replaced by a much more targeted scheme, IFICI (sometimes called NHR 2.0), reserved for specific profiles (research, innovation, startups, higher education, R&D, etc.). The “classic” business leader, even an international one, no longer easily fits this mold.

Without a special status, Portugal applies:

– Corporate tax at 21%, plus up to 1.5% municipal surcharge;

– Progressive income tax that climbs to 48%, plus an additional solidarity levy of 2.5% to 5% on the highest brackets;

– A flat 28% withholding tax on dividends for individuals.

Investment-based residency: permanent from the start in Bulgaria, temporary and slow in Portugal

When it comes to golden visas, the two countries have taken opposite directions.

In Bulgaria, the investment-based residency program was completely overhauled after the abolition of “passports for investment.” Since 2023, it revolves around one clear option: invest €512,000 in a Bulgarian licensed fund (alternative investment fund or ETF regulated by the Bulgarian Financial Supervision Commission). This investment directly grants permanent residency, with no temporary step.

The timeline is reasonable for a business leader: from the start of the application to the permanent resident card, expect an average of six to eight months. The card is valid for five years and renewable, but the permanent resident status itself has no time limit, provided the investment is maintained for five years.

In Portugal, the Golden Visa still exists, but only through funds, culture, research, or business creation. Since October 2023, any real estate-related route (direct purchase or through real estate funds) is closed. The dominant option is therefore a €500,000 investment in a qualified Portuguese investment fund.

The Portuguese residence obtained is temporary. It must be renewed every two years, each time with fees and administrative hurdles, all against a backdrop of significantly lengthened processing times: some applicants wait up to five years for their biometric appointment. During this time, the clock for long-term residency does not fully run.

The tables below summarize the main features of both schemes.

Comparative summary of Bulgaria vs. Portugal golden visas

For a business leader who wants a genuine European Plan B without physically settling in right away, Bulgaria ticks boxes that Portugal no longer does: immediate permanent residency, no stay requirement, short timeline, clear investment.

Cost of living, salaries, and purchasing power: clear advantage for Bulgaria

Wealth management isn’t just about taxes and visas. The cost of living is central, especially if part of the family or management plans to live there, even for just a few years.

Available comparative data shows a massive gap between the two countries.

Indices and budgets: Portugal, 50% more expensive in practice

Cost of living indices place Bulgaria far behind Portugal in terms of expensiveness:

In plain terms, the cost of living in Portugal is roughly 16% higher excluding rent, and 34.5% higher including rent. Housing weighs especially heavily: Portuguese rents are more than double those in Bulgaria. The price per square meter in city centers follows the same logic, with a near 60% premium in Portugal.

In terms of average monthly budget:

The key figure for a leader considering sending executives or their own family: in Bulgaria, the average salary covers about 1.3 months of expenses, versus 0.9 months in Portugal. At equivalent income, the standard of living is therefore much more comfortable in Bulgaria.

Daily life: a price breakdown favors the East

A few price examples illustrate the gap:

The business leader who wants to set up a cost-controlled operational base has a clear advantage in Sofia, Plovdiv, or Varna. A comfortable life in Sofia falls in the range of €1,500–€1,800 per month for a single person, €2,800–€3,500 for a family of four. Secondary cities like Plovdiv or Varna lower the bill further, with one-bedroom apartments in the city center around €400–€500.

Real estate market: Bulgaria catching up vs. Portuguese maturity

For a leader diversifying wealth through real estate, the Bulgaria / Portugal choice also hinges on market cycle.

Bulgaria: still an entry window, boosted by the euro and Schengen

Bulgaria has changed dimension in two years: full entry into the Schengen Area (including land borders) from 2025, adoption of the euro on January 1, 2026. This dual integration removes exchange rate risk, simplifies banking flows, and reassures institutional investors. Prices, however, remain well below those of neighboring countries.

The average figures speak for themselves:

– National average price around €2,561/m² for residential;

– Sofia around €2,487/m² on average for new builds, with €3,327/m² in central neighborhoods and nearly €3,764/m² in upscale areas like Oborishte;

– a 60% to 70% gap compared to Greece for comparable properties.

After a phase of strong growth in 2024–2025, analysts expect a soft landing in 2026, not a reversal. Forecasts center on a 5–10% annual increase nationally, 8–12% for Sofia, with peaks up to 15% in the most sought-after neighborhoods. Over five years, estimates suggest total returns (capital gains + rents) in the range of 65–75% for the best locations.

Taxes on ownership and sale remain modest:

– Annual property tax between 0.01% and 0.45% of the tax value, set by municipalities;

– Capital gains taxed at 10%, after a 10% deduction on the gain (with certain exemptions possible for primary residence and long-term holding of some assets);

– No wealth tax.

For a European business leader, Bulgaria thus offers a rare combination: still reasonable purchase prices, full integration into the euro and Schengen, light taxation, and catch-up potential.

Portugal: expensive market, very liquid, but more selective

Portugal has already reached the next stage: real estate is expensive, very liquid in major cities and tourist areas, and widely integrated into international portfolios. Lisbon regularly ranks in the top 10 most attractive European cities for real estate investment (8th in some rankings), and the country remains one of the most sought-after markets on the continent for institutional investors.

– €2,500 to €5,500/m² on average, depending on region and segment;

– Prices in city centers significantly higher than their Bulgarian equivalents;

– A residential market in Lisbon, in particular, where rents and purchase prices have been driven up by tourism, digital nomads, and former Golden Visa applicants.

The market’s performance holds, but more as a “core” asset than a catch-up bet. Projections for Portuguese commercial real estate investment hover around €2.4 billion in 2026, a slight decline, signaling a market that is already heavily worked. Segments like offices and logistics still show growth prospects for rents (14% expected increase in leased office space in Porto, +5% absorption in logistics), but the risk/return trade-off is less spectacular than in Bulgaria.

For a business leader, Portugal remains interesting for:

– Diversifying through highly liquid prime assets (offices, retail, hotels);

– Playing the high-end hospitality sector driven by strong tourism;

– Exposure to “living” segments (residential, student, senior), identified as the most promising at the European level.

But in terms of gross rental yield, a Portuguese residential asset will more likely offer 3–5% in tight areas, whereas Bulgaria can still deliver 6–9% in certain markets, with much more favorable taxation.

Visas for mobile workers: Golden Visa vs. nomad visas

For a highly mobile business leader, combining international business, remote work, and diversified wealth, remote-oriented visas matter as much as investment schemes.

Bulgaria: flexible digital nomad visa, combinable with the investor visa

Alongside its investment residency program, Bulgaria has launched a digital nomad visa (D visa). The conditions are reasonable:

– Must be non-EU/EEA;

– Work remotely for foreign clients or employers;

– Show about €31,000 in annual income;

– First obtain a D visa from a Bulgarian consulate, then a one-year renewable residence permit on the ground.

Portugal: well-regulated nomad visa, but much more demanding

Portugal also has its digital nomad visa, which is popular. The 2026 version, however, requires a high income level: at least €3,680 per month (four times the Portuguese minimum wage), plus:

– +50% for a spouse (€1,840/month),

– +30% per child (€1,104/month),

– +50% per dependent parent (€1,840/month).

This visa grants an initial two-year residence permit, renewable for an additional three years, before you can apply for permanent residency or citizenship after five years of effective stay – but under a standard tax regime for most profiles.

For a highly compensated business leader, this visa remains a credible option, but the trade-off between cost of living, taxation, and constraints is no longer as clearly favorable as in the era of NHR 1.0.

Political stability, the euro, and risk perception

A business leader doesn’t think solely like a tax specialist. The question of political stability weighs on the choice of anchor country, especially for heavy investments.

Bulgaria: chronic instability, but reinforced European anchoring

Bulgaria has experienced a succession of political crises since 2021, with seven elections in four years, short-lived governments, fragile coalitions, and prolonged use of caretaker cabinets. This climate has slowed some reforms, particularly those related to European recovery funds, and fueled distrust in institutions (only 10% of Bulgarians say they trust elections in some surveys).

Nevertheless, the country has maintained its course of European integration:

In terms of risk, Bulgaria remains ranked among countries whose government stability has significantly deteriorated, but in a world where even developed countries like Portugal, France, or Canada are seeing their stability ratings decline. For a business leader, the key therefore lies more in the setup (solid legal structure, rigorous due diligence, choice of local partners) than in the simple label of “stable country.”

Portugal: relative stability, but less predictable fiscal trajectory

Portugal is not free of political tensions, but its image remains that of a relatively stable country, a long-time eurozone member with functioning institutions. However, recent years have shown that even there, the rules of the game can change quickly: the end of NHR for new arrivals, the removal of the real estate component from the Golden Visa, discussions on corporate tax reform, tighter regulation of the rental market.

For which business leader profile is Bulgaria most relevant?

In 2026, Bulgaria emerges as a preferred choice for several typical profiles of business leaders.

The entrepreneur with high cash generation capacity

An entrepreneur generating high profits (consulting, tech, trading, European B2B services, etc.) should seriously consider Bulgaria. With a corporate/personal tax pair at 10%, and a social security contribution cap, the savings compared to a Western European setup are colossal, all while remaining within an EU and eurozone framework.

The real estate investor leader seeking yield

For those looking to build a European rental portfolio, Bulgaria remains one of the last great “value” markets in the EU: still affordable prices, catch-up dynamics driven by the euro, decent gross yield, light taxation on rents and capital gains, still reasonable debt costs in euros.

The leader wanting a fast and discreet European Plan B

The Bulgarian Golden Visa, with immediate permanent residency, zero stay requirements, and the possibility of citizenship after five years, offers a particularly powerful and discreet Plan B. No other EU country currently combines:

– A single investment in a regulated, relatively transparent fund;

– Permanent resident status from approval;

– Absolutely no minimum stay;

– A flat 10% tax rate.

For a leader from an unstable or heavily taxed country, this is a patrimonial life insurance worth considering.

In which cases does Portugal still have the advantage?

Despite everything, Portugal should not be dismissed. It remains more relevant in certain scenarios.

The leader prioritizing quality of life for their family

Weather, international school infrastructure, healthcare system, French-speaking and international community, startup ecosystem, air connectivity: on all these points, Portugal outpaces Bulgaria. Lisbon, Porto, the Algarve remain high-end destinations, highly valued by executives and families.

The tech or research leader targeting the IFICI regime

A profile of researcher, university professor, R&D engineer, or founder of a certified startup in innovative sectors can benefit from the new Portuguese IFICI regime (NHR 2.0). This still offers an attractive 20% rate on certain Portuguese-source professional income and exemptions on some foreign income (notably capital gains).

In this specific case, the gap with Bulgaria narrows, especially if you value the quality of the local ecosystem (incubators, venture capital, international networks) more than pure tax optimization.

How to decide: a decision framework for a business leader in 2026

In practice, the choice is not about a binary ranking. It requires articulating several dimensions.

In 2026, to diversify a business leader’s wealth between Bulgaria and Portugal, the most robust solution is often not “either/or” but a smart combination: anchor the tax structure and part of productive investments in Bulgaria under 10%, while using Portugal as a base for living, networking, and commercial presence in Western Europe.

Bulgaria then becomes the engine for net value creation, Portugal the showcase and talent magnet. For a leader who thinks in terms of a country portfolio rather than a single choice, this is likely the true competitive advantage in 2026.

Business leader

Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

Find me on social media: