Freelance vs EOOD in Bulgaria — When to Incorporate?

Tax burden comparison

Annual income	Freelance (NPR 25%)	EOOD (corp. tax + dividend)
BGN 20,000	~BGN 3,800 (19%)	~BGN 2,900 (14.5%)
BGN 40,000	~BGN 9,300 (23%)	~BGN 5,800 (14.5%)
BGN 80,000	~BGN 18,510 (23%)	~BGN 11,600 (14.5%)
BGN 150,000	~BGN 37,500 (25%)	~BGN 21,750 (14.5%)

Freelance includes social insurance at minimum. EOOD excludes director's personal contributions.

When is EOOD more efficient?

Generally at above BGN 40,000–50,000 net taxable income, EOOD may be more tax-efficient (depends on personal expenses and insurance).