Tax Comparison: Freelancer vs EOOD in Bulgaria (2026 Numbers)
Choosing between freelance and EOOD? Here's a side-by-side tax analysis with real 2026 numbers. Freelance is a great starting choice. An EOOD starts to pay off when your real expenses exceed the 25% NPR, when you insure on a high base, or for non-tax reasons — purely on tax, at the minimum insurance base freelance often remains cheaper even at higher income.
The two structures
Freelance (Svobodna Profesiya)
- Individual registration via BULSTAT
- Taxed under Art. 50 PITL (personal income tax)
- 10% tax after NPR deduction
- Social insurance on chosen insurable income
EOOD (Single-member LLC)
- Separate legal entity
- 10% corporate tax on profit
- 5% dividend tax when you withdraw profits
- Director pays social insurance (similar to freelance)
Side-by-side calculation
Assumptions: no employees; freelance with NPR 25%; EOOD distributes the full net profit (10% corporate + 5% dividend on the distributed amount; manager insurance excluded). Freelance = 10% tax after NPR (7.5% of gross) + 27.8% contributions on the chosen base — the range spans the 2026 minimum annual base (€1,933.66) to the maximum (€7,306.28).
| Annual gross | Freelance total (25% NPR, min–max base) | EOOD total (10% + 5% on distribution) |
|---|---|---|
| €20,000 | €3,434 (17.2%) – €8,806 (44.0%) | €2,900 (14.5%) |
| €40,000 | €4,934 (12.3%) – €10,306 (25.8%) | €5,800 (14.5%) |
| €80,000 | €7,934 (9.9%) – €13,306 (16.6%) | €11,600 (14.5%) |
| €150,000 | €13,184 (8.8%) – €18,556 (12.4%) | €21,750 (14.5%) |
At the minimum insurance base freelance remains cheaper even at high income; EOOD wins when real expenses exceed the 25% NPR, when you insure on a high base, or for non-tax reasons.
The crossover point
The crossover is roughly at €40,000–51,130 taxable income. The range is indicative — the only statutory boundary is the mandatory VAT registration threshold of €51,130 (Art. 96(1) of the VAT Act). Below €40,000 the difference is small and freelance has lower admin overhead.
Non-tax considerations
| Factor | Freelance | EOOD |
|---|---|---|
| Liability | Unlimited (personal assets) | Limited to share capital |
| Setup cost | EUR 29 | EUR 39 |
| Admin burden | Low | Medium |
| Employees | Possible but complex | Standard |
| Investor-readiness | No | Yes |
| Time to set up | 1–3 days | 5–10 days |
Our recommendation
- Income below €40,000/year → Start as freelance, switch later if needed
- Income €40,000–51,130/year → Run the numbers: EOOD wins when real expenses exceed the 25% NPR or you need limited liability; the only statutory boundary is the VAT threshold (€51,130)
- Income above €51,130/year → EOOD is the clearer choice for structure and deductions (on pure tax, freelancers at the minimum base may still pay less — see the table)
See also: Complete Guide to Freelance Profession in Bulgaria
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