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Assumptions: No employees, all income withdrawn as dividend, social insurance at minimum (BGN 933/mo), NPR 25% for freelance

Annual gross	Freelance tax	EOOD total tax	Winner
BGN 20,000	BGN 3,800 (19%)	BGN 3,900 (19.5%)	Freelance ≈
BGN 40,000	BGN 9,300 (23%)	BGN 6,800 (17%)	EOOD
BGN 80,000	BGN 18,500 (23%)	BGN 12,600 (15.8%)	EOOD
BGN 150,000	BGN 37,500 (25%)	BGN 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 EOOD corporate tax 10% + dividend 5% = effective 14.5% on withdrawn profit.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 BGN 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 BGN 40,000/year → Start as freelance, switch later if needed
• Income BGN 40,000–80,000/year → Run the numbers, EOOD likely wins
• Income above BGN 80,000/year → EOOD is the clear choice

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