# 🇧🇬 Bulgaria — EU Tax Heaven for Freelancers in 2026? 2026-07-31 — Podnikio Team Compare Bulgaria's two freelancer structures — individual freelancer and EOOD company — with exact 2026 tax numbers, effective rates, and a head-to-head table to help you choose. Bulgaria consistently offers some of the lowest tax rates in the European Union — a flat 10% income tax and a 10% corporate tax rate, both among the lowest in the EU. Combined with a low cost of living, Sofia has become an increasingly popular base for remote workers and freelancers, particularly from other EU countries, and cities like Varna or Burgas attract anyone looking for a more relaxed lifestyle by the sea. In this article we break down exactly how the Bulgarian tax system works for self-employed individuals and company owners, with concrete numbers for 2026 so you can plan realistically. All amounts are in EUR (Bulgaria adopted the euro in 2026). ## Main takeaways Bulgaria offers two structures for freelancers: the individual *свободна професия* (simpler, no company needed) and the EOOD/EDPK company (lower taxes at most income levels). For freelancers in the ordinary 25% recognized-expense category, the EOOD's fixed social insurance on the minimum base makes it more efficient between roughly 16,400 and 66,300 EUR/year. Both structures combine a 10% headline tax rate with a relatively straightforward calculation — and can be tax-efficient for many freelancers, depending on income, insurance position, expenses, and where the work is actually performed. ## Who this applies to This article is written for **freelancers and remote workers resident in Bulgaria**, earning income from clients. Two structural options are available: - Registering as an **individual freelancer** (*свободна професия* — liberal profession) - Opening a **limited liability company** (EOOD/*ЕООД*) ## Which structure is better? The EOOD is more tax-efficient at many income levels because the owner pays social insurance on the **statutory minimum base only**, regardless of how much the company earns. The minimum base rose mid-year in 2026 (550.66 EUR through July, 620.20 EUR from August), so the 2026 minimum blends both and comes to ≈1,934 EUR/year — rising to ≈2,069 EUR/year once the new base applies for a full calendar year from 2027 onward. The individual freelancer pays contributions on actual income within the applicable monthly minimum and maximum, which follow the same mid-year split. Note that as the company owner, you might not need to self-insure on the minimum base — you could choose a higher base, take a salary, or have another insurance title. The numbers here assume the minimum-base scenario for comparison, as it's the most common way. For a freelancer in the ordinary 25% recognized-expense category, this creates a crossover around **66,300 EUR/year**: below it, the EOOD's fixed social cost wins decisively; above it, the freelancer's capped contributions catch up and the gap reverses. There is also a second, lower crossover around **16,400 EUR/year** — below that the EOOD's social cost is no longer low relative to the freelancer's, and the freelancer route is cheaper again. Beyond the numbers, the structures differ in complexity. The freelancer route requires no company: no bookkeeping, no annual financial statements, no formal dividend process. The EOOD requires an accountant and more administration, but provides legal separation between personal and business finances and lets you retain and reinvest profits inside the company without triggering dividend tax immediately. Freelancers who qualify for the 40% category have a lower taxable base and different break-even points — see the [crossover FAQ](/en/blog/bulgaria/faq-eood-vs-freelancer-crossover-2026) for the exact numbers. ## Individual freelancer (*свободна професия*) Bulgarian law allows certain professionals to register as individual freelancers without forming a company. This is a common option for IT consultants, designers, translators, accountants, engineers, and other independent professionals. Key features: - **25% recognized expenses** deducted automatically from gross income for ordinary free-profession income and non-employment-contract remuneration. Author/licence remuneration and lawyer income get **40%** instead — see the [full freelancer guide](/en/blog/bulgaria/freelancer-svobodna-professia-2026) for which category applies to you. - **10% income tax** on the remaining taxable base (after deducting social contributions) - **Social insurance** calculated on monthly income net of the applicable recognized-expenses deduction, capped between a band that changed mid-year in 2026 — 550.66–2,111.64 EUR/month through July, then 620.20–2,300 EUR/month from August: DOO 14.8% + DZPO 5% + NZOK 8% = **27.8% total** The social insurance cap is important: once your net-of-expenses monthly income clears both periods' ceilings, contributions stop increasing, fixed at ≈26,281 EUR/year in social base for 2026. For the ordinary 25% category that happens at roughly **36,800 EUR/year in gross income**; for the 40% category it happens later, at roughly **46,000 EUR/year**. This makes the freelancer route increasingly attractive at higher incomes. **Example — 100,000 EUR gross, ordinary 25% category:**
EUR
Recognized expenses (25%) 25,000
Annual social base (2026 blend: 7mo capped at 2,111.64 + 5mo capped at 2,300) 26,281
State insurance (DOO + DZPO, 19.8%) 5,204
Health insurance (NZOK, 8%) 2,103
Tax base 67,694
Income tax (10%) 6,769
Total tax & contributions 14,076 (14.1%)
Net income 85,924
[→ Full breakdown: Freelancer taxation in Bulgaria](/en/blog/bulgaria/freelancer-svobodna-professia-2026) ## Company (EOOD) An EOOD is the Bulgarian single-owner limited liability company — the equivalent of an LLC. The owner registers as a self-insured individual without a salary, paying social contributions on the **statutory minimum base only** — 550.66 EUR/month through July 2026, 620.20 EUR/month from August — regardless of actual company revenue. This is the key structural advantage over the freelancer route at lower incomes. Key features: - **10% corporate tax** on company profit - **5% dividend tax** when distributing profit to yourself - Social insurance on minimum base: DOO + DZPO + NZOK = **27.8%** → ≈**1,934 EUR/year fixed** for 2026 (≈2,069 EUR/year once the new base applies for a full calendar year), regardless of revenue - Administrative overhead: proper bookkeeping, annual financial statements, separate bank account **Example — 60,000 EUR gross, no company expenses:**
EUR
State insurance (on minimum base) 1,377
Health insurance (on minimum base) 556
Tax base 60,000
Corporate tax (10%) 6,000
Net retained in company 54,000
Dividend tax (5%) 2,700
Total tax 10,634 (17.7%)
Net income 49,366
[→ Full breakdown: EOOD company taxation in Bulgaria](/en/blog/bulgaria/eood-company-taxation-2026) ## Practical notes **Get an accountant.** Bulgarian accounting is not complicated by EU standards, but it has its own rules and requirements. Budget for professional accounting support from day one. **We handle all of this for you.** [Podnikio](https://www.podnik.io) is an all-in-one platform for freelancers and company owners: invoicing, a business bank account, and a connected accountant — all in one place for a single monthly fee. We also manage the initial registration process end-to-end, whether you are setting up as a freelancer or opening an EOOD. ## Calculator Compare both structures for your specific income in the calculator below. And if you are considering other countries as well, check out the [full tax calculator](/en/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. ## Related posts - [🇨🇿 Czech Republic — Paušální Daň 2026 Opt-In Deadline](https://www.podnik.io/en/blog/czech-republic/faq-pausalni-dan-deadline-2026) - [🇸🇰 Slovak Republic — s.r.o. Company Taxation for Freelancers in 2026](https://www.podnik.io/en/blog/slovak-republic/sro-company-taxation-2026) - [🇧🇬 Bulgaria — 2026 Freelancer & Company Tax FAQ](https://www.podnik.io/en/blog/bulgaria/faq-2026)