# 🇧🇬 Bulgaria — EOOD Company Taxation in 2026

2026-07-31 — Podnikio Team

Full breakdown of Bulgarian EOOD company taxation for 2026: minimum social base, corporate tax, dividend tax, and the crossover against an individual freelancer.

This is one of two detailed guides on Bulgarian taxation. See the [overview article](/en/blog/bulgaria/eu-tax-heaven-for-freelancers-2026) for a comparison of both structures.

## Main takeaways

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Combined corporate tax (10%) and dividend tax (5%) put a 14.5% floor under the all-in rate on distributed profit.

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For freelancers in the ordinary 25% recognized-expense category, the EOOD beats the individual freelancer structure between roughly 16,400 and 66,300 EUR/year; above 66,300 the freelancer's capped social contributions tip the balance the other way, and below 16,400 the EOOD's dividend layer make it the more expensive route.

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At the minimum base, social insurance is a fixed ~1,934 EUR/year for 2026 (seven months at the old 550.66 EUR base, five at the new 620.20 EUR base). It does not grow with company revenue.

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## 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 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. For a freelancer in the ordinary 25% recognized-expense category, this makes the EOOD more tax-efficient between roughly 16,400 and 66,300 EUR/year — but not below that, where the fixed social cost is no longer offset by anything and the 10% + 5% tax layers still apply in full.

Freelancers who qualify for the 40% category (author/licence remuneration, lawyers) have a lower taxable base to begin with, so their break-even points against the EOOD sit elsewhere — see the [crossover FAQ](/en/blog/bulgaria/faq-eood-vs-freelancer-crossover-2026) for the exact numbers.

## Rates at a glance (2026)

<table>
<thead>
  <tr>
    <th>
      
    </th>
    
    <th>
      Rate
    </th>
  </tr>
</thead>

<tbody>
  <tr>
    <td>
      Corporate tax
    </td>
    
    <td>
      10%
    </td>
  </tr>
  
  <tr>
    <td>
      Dividend tax
    </td>
    
    <td>
      5%
    </td>
  </tr>
  
  <tr>
    <td>
      DOO (state social insurance)
    </td>
    
    <td>
      14.8%
    </td>
  </tr>
  
  <tr>
    <td>
      DZPO (supplementary pension)
    </td>
    
    <td>
      5.0%
    </td>
  </tr>
  
  <tr>
    <td>
      NZOK (health insurance)
    </td>
    
    <td>
      8.0%
    </td>
  </tr>
  
  <tr>
    <td>
      <strong>
        Total social
      </strong>
    </td>
    
    <td>
      <strong>
        27.8%
      </strong>
    </td>
  </tr>
  
  <tr>
    <td>
      Minimum monthly social base (Jan–Jul / Aug–Dec)
    </td>
    
    <td>
      550.66 EUR / 620.20 EUR
    </td>
  </tr>
  
  <tr>
    <td>
      <strong>
        2026 minimum social insurance (7 months old + 5 months new base)
      </strong>
    </td>
    
    <td>
      <strong>
        ≈1,934 EUR
      </strong>
    </td>
  </tr>
</tbody>
</table>

We use the **minimum-base** self-insurance scenario. If the owner wants, he can pay more than the minimum base, up to the maximum allowed, but most of the time, owners choose to pay the minimum and that's the scenario we model. The minimum base is a fixed cost, it does not grow with company revenue.

## How the calculation works

**Step 1 — Social contributions (fixed)**

The owner registers as a self-insured individual without a salary. The minimum monthly insurable income rose mid-year — 550.66 EUR through July, 620.20 EUR from August — so the 2026 minimum blends both:

<formula-chips formula="(7 × 550.66 + 5 × 620.20) × 27.8%" result="≈1,934 EUR/year">



</formula-chips>

This is a fixed cost — it does not change as company revenue grows. From 2027 onward, once the 620.20 EUR base applies for a full calendar year, the equivalent run rate rises to ≈2,069 EUR/year (`620.20 × 12 × 27.8%`).

**Step 2 — Corporate tax base**

<formula-chips formula="Revenue − Company Expenses" result="Tax Base">



</formula-chips>

The owner's social contributions are paid personally, not by the company — they do not reduce the corporate tax base. Only genuine, documented company expenses do.

**Step 3 — Corporate tax**

<formula-chips formula="Tax Base × 10%" result="Corporate Tax">



</formula-chips>

**Step 4 — Net retained in company**

<formula-chips formula="Revenue − Company Expenses − Corporate Tax" result="Net Retained">



</formula-chips>

If you can retain the profits in the company, you can avoid the dividend tax layer and pay only the 10% corporate tax. But if you want to take the money out, the dividend tax on the next step applies.

**Step 5 — Dividend tax**

<formula-chips formula="Net Retained × 5%" result="Dividend Tax">



</formula-chips>

Dividends from the current year's profit can be distributed only after the annual financial statements are approved. A company may make more than one distribution decision from already approved retained profits, subject to the usual solvency and corporate-law checks; dividends are not a monthly substitute for salary.

**Step 6 — Net income**

<formula-chips formula="Revenue − Company Expenses − Social Contributions − Corporate Tax − Dividend Tax" result="Net Income">



</formula-chips>

## Examples — zero company expenses

<tax-chart variant="bg-eood" year="2026">



</tax-chart>

## 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:

<table>
<thead>
  <tr>
    <th>
      
    </th>
    
    <th>
      EUR
    </th>
  </tr>
</thead>

<tbody>
  <tr>
    <td>
      Company expenses
    </td>
    
    <td>
      10,000
    </td>
  </tr>
  
  <tr>
    <td>
      Social contributions
    </td>
    
    <td>
      1,934
    </td>
  </tr>
  
  <tr>
    <td>
      Tax base
    </td>
    
    <td>
      50,000
    </td>
  </tr>
  
  <tr>
    <td>
      Corporate tax (10%)
    </td>
    
    <td>
      5,000
    </td>
  </tr>
  
  <tr>
    <td>
      Net retained
    </td>
    
    <td>
      45,000
    </td>
  </tr>
  
  <tr>
    <td>
      Dividend tax (5%)
    </td>
    
    <td>
      2,250
    </td>
  </tr>
  
  <tr>
    <td>
      <strong>
        Total tax
      </strong>
    </td>
    
    <td>
      <strong>
        9,184 (15.3%)
      </strong>
    </td>
  </tr>
  
  <tr>
    <td>
      <strong>
        Net income
      </strong>
    </td>
    
    <td>
      <strong>
        40,816
      </strong>
    </td>
  </tr>
</tbody>
</table>

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

## When EOOD beats freelancer

For a freelancer in the ordinary 25% category, the EOOD is more tax-efficient between roughly **16,400 and 66,300 EUR/year**. Above 66,300 the freelancer route wins as its social-insurance cap takes full effect. Below 16,400 it also wins, because at the bottom of the range both routes use the statutory minimum social base.

But the freelancer benefits from its lighter income-tax layer and absence of dividend tax.

The 40% author/lawyer category has different break-even points — see the [crossover FAQ](/en/blog/bulgaria/faq-eood-vs-freelancer-crossover-2026).

<effective-rate-chart labels="EOOD,Freelancer" variants="bg-eood,bg-freelancer" year="2026">



</effective-rate-chart>

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.

In this example, we assume zero-expenses for both the EOOD and freelancer. If the EOOD has legitimate business expenses, its effective tax rate can drop below the freelancer's even at higher revenue levels. Always consider your specific situation and consult with a tax professional to determine the best structure for your business.

## Administrative requirements

Operating an EOOD requires:

- **Company registration** with the Bulgarian Commercial Register (takes 1–2 weeks and may involve a notary and a Registry Agency 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 VAT filing** if VAT-registered
- **Annual corporate tax return** — filed by June 30 of the following year
- **Dividend decisions and declarations** — current-year profit becomes distributable after its financial statements are approved

## What about Podnikio?

[Podnikio](https://www.podnik.io) 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](/en/tax-calculator).

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</tax-calculator-variant-bulgarian>

## 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.

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