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.

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Assumptions: No employees, all income withdrawn as dividend, social insurance at minimum (550.66 €/mo for 2026), NPR 25% for freelance

Annual gross	Freelance tax	EOOD total tax	Winner
€20,000	€3,800 (19%)	€3,900 (19.5%)	Freelance ≈
€40,000	€9,300 (23%)	€6,800 (17%)	EOOD
€80,000	€18,500 (23%)	€12,600 (15.8%)	EOOD
€150,000	€37,500 (25%)	€22,750 (15.2%)	EOOD

Freelance social insurance included. EOOD corporate tax 10% + dividend 5% = effective 14.5% on withdrawn profit.

The crossover point

The crossover is roughly at €40,000–50,000 taxable income. Below this, the difference is minimal (and freelance has lower admin overhead). Above this, EOOD wins on taxes.

Non-tax considerations

Factor	Freelance	EOOD
Liability	Unlimited (personal assets)	Limited to share capital
Setup cost	EUR 29	EUR 29–39
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 €40,000–80,000/year → Run the numbers, EOOD likely wins
• Income above €80,000/year → EOOD is the clear choice

See also: Complete Guide to Freelance Profession in Bulgaria

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