🇧🇬 Bulgaria — EOOD Company Taxation for Freelancers in 2026

This is one of two detailed guides on Bulgarian freelancer taxation. See the overview article for a comparison of both structures.

Main takeaways

What it is

An Еднолично дружество с ограничена отговорност (EOOD) is the Bulgarian single-owner limited liability company — the Bulgarian equivalent of an LLC. As the sole owner, you operate the company, receive its income, and pay yourself by distributing dividends once the year is closed.

The key structural advantage of the EOOD is that the owner pays social insurance on the statutory minimum base only — regardless of how much the company earns. This makes it more tax-efficient than the freelancer structure at most income levels below ~68,000 EUR/year.

Rates at a glance (2026)

Social contributions are paid on the minimum base only — this is a fixed cost regardless of income, not a percentage of revenue.

How the calculation works

Step 1 — Social contributions (fixed)

The owner registers as a self-insured individual without a salary. Social contributions are based on the minimum monthly insurable income of 550.71 EUR:

This is a fixed cost — it does not change as company revenue grows.

Step 2 — Corporate tax base

Social contributions paid by the owner are deductible from the corporate tax base.

Step 3 — Corporate tax

Step 4 — Net retained in company

Step 5 — Dividend tax

Dividends can only be distributed once per year, after the annual financial statements are formally approved.

Step 6 — Net income

Examples — zero company expenses

The effect of company expenses

If the company has genuine business expenses (subcontractors, equipment, software, office rent), those reduce the corporate tax base. Unlike the freelancer route, there is no fixed recognized expense rate — you deduct actual, documented costs.

Example at 60,000 EUR revenue with 10,000 EUR in company expenses:

Every euro of legitimate company expense reduces the effective rate by reducing the corporate tax base before dividends are calculated.

When EOOD beats freelancer

The EOOD is more tax-efficient up to approximately 68,000 EUR/year. The freelancer route becomes better above that, as the freelancer's social insurance cap takes full effect:

Beyond taxes, the EOOD adds administrative overhead: proper bookkeeping, annual financial statements, a company bank account, and a formal dividend declaration process. The freelancer route is simpler to operate.

That said, the EOOD structure can be advantageous for those who want to reinvest profits into the company, have significant business expenses, or prefer the legal separation between personal and business finances.

Administrative requirements

Operating an EOOD requires:

• Company registration with the Bulgarian Commercial Register (takes 1–2 weeks, involves a notary and court fee)
• Separate business bank account — required by law
• Full bookkeeping — double-entry accounting records maintained by a professional accountant
• Annual financial statements — filed with the National Statistics Institute and Commercial Register
• Monthly / quarterly VAT filing if VAT-registered
• Annual corporate tax return — filed by March 31 of the following year
• Dividend declaration — once per year after financial statements are approved

What about Podnikio?

Podnikio supports Bulgarian EOOD companies with the full stack: company registration end-to-end, invoicing, a business bank account, and a connected accountant who handles bookkeeping, corporate tax filing, annual financial statements, and dividend declarations — all for a single monthly fee. No juggling between a lawyer, an accountant, and a bank.

Calculator

Enter your expected annual revenue to see your exact tax breakdown as a Bulgarian EOOD company — and compare it against the freelancer structure. And if you are considering other countries as well, check out the full tax calculator.

Contact us

If you have questions or want to discuss whether it's the right choice for your freelance business, feel free to reach out to us. We offer free initial consultation to help you navigate the complexities of freelancer taxation and find the optimal setup for your situation.