# A dedicated business bank account for freelancers and companies in Bulgaria An IBAN, a debit card, and instant transfers, all connected to your bookkeeping from day one. [Contact us](#contact) Podnikio 7734 Podnikio 7734 ## A business account built for you Whether you freelance as a freelance professional or run a limited company (EOOD/OOD, EDPK/DPK), you get a dedicated IBAN and debit card in your business's name. Every transaction flows straight into your bookkeeping, so nothing needs re-entering by hand. * A debit card, physical and virtual Issued in your business's name, ready to spend with from day one. * An IBAN that's yours A dedicated account number in your business's name. * Multi-currency, built in Hold and convert multiple currencies without needing a separate provider. * Instant transfers Send and receive money instantly. * Opened entirely online Start and finish the application from your laptop. * Bank-grade security Regulated and safeguarded, with the same protections a standard bank account carries. ## How it works Fully online from application to a live IBAN. 1. 1 Tell us about your business Freelancer or company, new or already trading — we tailor the application to your situation. 2. 2 We verify you, remotely Upload your ID and a few business details. Verification happens online. 3. 3 Your IBAN goes live An account number in your business's name, plus a debit card on the way to you. 4. 4 Spend, send, and get paid Pay suppliers, get paid by clients, and have it all reconcile automatically with your bookkeeping. ## Bulgaria Since 2026, Bulgaria uses the euro, and its Schengen membership means SEPA transfers move freely across the continent. Euro accountSEPA transfers across the EUBuilt for Bulgaria's growing freelancer and startup community Bulgaria •••• •••• •••• 7734 Cardholder Podnikio Expires 12/28 ## Both local and expat friendly Whether you've lived in Bulgaria for years or just arriving as a foreigner, freelancer, or digital nomad - opening an account works the same clear way, in English if that's what you need. English-speaking, every step The application, the verification, and support along the way — all in plain English. Any nationality, EU or not We work with EU citizens, non-EU foreigners, and everyone in between. Opened fully remotely Start and finish the application from your laptop. Built for freelancers & small companies Designed around the needs of freelancers, digital nomads, and small companies. ## Accounting built-in Built-in accounting features to streamline your financial management. [See accounting for Bulgaria](/en/services/bulgaria/accounting) ## Understand Bulgaria in human English [2026-08-02EOOD vs DPK: The New Variable Capital Company ExplainedBulgaria's Variable Capital Company (ДПК/ЕДПК) is a flexible form for startups and small enterprises. Here's how it differs from the EOOD and when each is appropriate.For over 30 years, anyone starting a company in Bulgaria had essentially two realistic choices: an OOD/EOOD (limited liability company) or an AD (joint-stock company). In July 2023, the Bulgarian Parliament amended the Commercial Act (_Търговски закон_) to add a new capital company alongside them: the **Variable Capital Company** — _дружество с променлив капитал_, or **DPK** (ДПК). Its single-owner version is the **EDPK** (ЕДПК), the direct counterpart to the EOOD.The law was published in the State Gazette in August 2023, but the Registry Agency needed time to adapt its regulations and IT systems before anyone could actually register one. Registration became possible from late 2024 — which means a lot of the guidance floating around online was written before it was usable, and hasn't caught up.This article explains what the DPK actually is, how the single-member EDPK compares to the EOOD, and — most importantly — which one you should pick.](/en/blog/bulgaria/eood-vs-dpk-variable-capital-company-2026)[Main takeaways](#main-takeaways) ## [What the DPK actually is](#what-the-dpk-actually-is) The core idea is in the name: **variable capital**. In an EOOD, your share capital is a fixed number recorded in the Trade Register, and changing it means a formal procedure — a decision, amended articles, and a new filing. In a DPK, the capital is not registered as a fixed figure at all. It's determined by the shares (_дялове_) actually issued, and its amount is simply established each year in the annual financial statements. Legally the DPK sits between an OOD/EOOD and an AD, borrowing from both. Bulgarian commentators consistently describe it as a hybrid, and it's explicitly modelled on what startups need: issue equity to a new hire, take an investor in a few months later, and do it without a Trade Register filing for every move. ## [Eligibility — it's a small-business-only form](#eligibility-its-a-small-business-only-form) This is the constraint that decides the question for a lot of people, so it's worth stating up front. The DPK/EDPK is reserved for **small enterprises**. To keep the status, the company must have: * **Fewer than 50 employees**, and * **Annual turnover and/or asset value not exceeding 4,000,000 BGN** (roughly **2.05 million EUR**) Whether you still qualify is established at the annual general meeting that approves the financial statements. If you've crossed the thresholds, you must transform into another capital company type — typically an OOD/EOOD or an AD — **by the end of the following financial year**. Miss that deadline and the consequence is not a fine: the prosecutor can bring a claim and the district court dissolves the company, after which it's struck from the register. One terminology note: the 4M BGN threshold here is specific to the DPK chapter of the Commercial Act and is stricter than the "small enterprise" definition used in the Accounting Act. If you see different numbers elsewhere, that's usually why. ## [EOOD vs EDPK — head to head](#eood-vs-edpk-head-to-head) | Aspect | EOOD | EDPK (single-member DPK) | | -------------------- | ----------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Legal nature | Limited liability company, fixed registered capital | Capital company, capital not fixed in the Trade Register | | Capital registration | Specific amount recorded in the Trade Register; every change needs a formal procedure and filing | Amount follows from issued shares, reflected in the annual financial statements | | Minimum capital | Statutory minimum capital of 1 EUR from euro adoption, with formation formalities in practice | No statutory minimum total capital; shares can have a nominal value as low as 0.01 EUR (one eurocent) | | Capital bank account | Typically requires an initial "subscription" bank account to deposit capital at formation | No mandatory subscription account | | Owner visibility | Owner is listed in the Trade Register | Owners kept in an internal shareholders' book, not the Trade Register (beneficial owners must still be declared under AML rules) | | Share transfers | Written agreement with notarial certification of **both signatures and content**, done simultaneously; plus a Trade Register filing | Default is written form with notarial certification of **signatures only**, and no filing per transfer — but the articles can opt for plain written form, dropping the notary entirely | | Share classes | Standard shares; poor support for special rights | Multiple classes with special rights — multiple votes, preferential dividends, redemption rights | | Growth ceiling | None — can grow indefinitely | Must convert if it stops qualifying as a small enterprise | | Maturity of the form | 30+ years of practice, case law, and bank familiarity | New since 2023; limited case law and practice | Note what is **not** in that table: **tax**. Both are capital companies, so the tax treatment is the same — 10% corporate tax, 5% dividend tax, and the owner insured, usually on the statutory minimum social base. The DPK is not a tax optimization; it's a corporate-governance instrument. If tax is what you're optimizing, the numbers in the [EOOD taxation guide](/en/blog/bulgaria/eood-company-taxation-2026) apply unchanged. ## [What the DPK is genuinely good at](#what-the-dpk-is-genuinely-good-at) **Employee equity.** The minimum nominal value per share is **0.01 EUR — one eurocent** — and there is no statutory minimum total capital, which means you can slice ownership finely enough to grant granular equity to employees and contractors. Doing the same in an EOOD is clumsy: every allocation is a notarial share transfer and a Trade Register filing. **Taking on investors.** Different classes of shares with different rights — liquidation preference, preferential dividends, multiple votes, redemption — are exactly what a funding round is made of. An EOOD's uniform shares force you to bolt this on with shareholder agreements that sit awkwardly on top of the corporate structure. **Changing the cap table without bureaucracy.** Because capital is variable, issuing, redeeming, or transferring shares doesn't trigger a Trade Register filing each time — the amount is simply recalculated once a year with the financial statements, and the cap table lives in the internal shareholders' book. The formalities on the transfer itself are lighter than an EOOD's, and how light depends on how you draft the articles. **Modern governance.** The law explicitly supports remote general meetings and electronic decision-making, and lets you run the company either with one or more managers (_управители_) or with a management board, without a rigid minimum board size. ## [The catch](#the-catch) **It's new.** Courts, tax authorities, banks, and counterparties have far less experience with the DPK than with the EOOD. Opening a bank account, getting a credit line, or satisfying a large client's compliance department is simply more predictable with a company type that everyone has seen a thousand times. **The size cap is a future problem.** Reaching 50 employees, or exceeding both 4M BGN financial measures, forces a conversion — legal work and cost you did not have to plan for with an EOOD. **Privacy cuts both ways.** Owners not being listed in the Trade Register is a genuine benefit for some, but some counterparties and lenders prefer the transparency of an OOD/EOOD. **The articles do a lot of the work.** Because so many rights and procedures live in the company's articles rather than in the statute, poor drafting creates real risk — internal conflict, investor uncertainty, or rights that don't work the way you assumed. An EOOD is more rigid, but rigidity means fewer ways to get it wrong. ## [So which one should you register?](#so-which-one-should-you-register) **For most freelancers and small companies, the EDPK is the better fit.** That's not an accident — it's the form the legislature actually designed for you. The tax is identical to an EOOD, the formation is cheaper and lighter (no capital subscription bank account), and the structure doesn't lock you into decisions you haven't made yet. If a co-founder, an investor, or an employee you want to give equity to shows up in year three, the EDPK absorbs that without restructuring — no Trade Register filing per transfer, and if you draft the articles for it, no notary either. An EOOD makes you pay a notary _and_ file with the Trade Register for every one of those moves. The flexibility costs you nothing while you don't need it, which is what makes it the sensible default rather than a bet. **Choose the EOOD if** predictability matters more to you than flexibility. Concretely, that means: you deal with banks or large corporate clients whose compliance processes may not have caught up with the new form; you want the depth of 30 years of case law and established practice behind your structure; or you realistically expect to outgrow the small-enterprise cap and would rather not pay for a conversion later. It's the conservative choice, and for a stable, traditional business it's still a perfectly good one. If you're still deciding between operating through a company at all versus registering as an individual freelancer (_свободна професия_), that's the more consequential decision — and it's covered in the [structure comparison](/en/blog/bulgaria/eu-tax-heaven-for-freelancers-2026). ## [Registration specifics](#registration-specifics) If you do go with a DPK/EDPK: * **Founders** can be one or more natural or legal persons, subject to the Commercial Act's general disqualification rules (which catch, for example, declared-insolvent individuals and former managers of insolvent companies with unsatisfied creditors). * **The name must carry the form** — the company name has to include "ДПК" or "ЕДПК" (or the full Bulgarian wording) so the legal form is unambiguous. * **You must maintain an internal shareholders' book.** This is a statutory obligation, and since the Trade Register doesn't hold ownership data, this book _is_ the evidence of who owns what. Treat it as a real record, not a formality. * **You will have to declare beneficial owners** under the anti-money-laundering rules. Note this is actually a step _more_ than a plain EOOD: an EOOD owned directly by a natural person is exempt from filing a separate beneficial-owner declaration, precisely because the register already shows the owner. A DPK's owners aren't visible there, so the exemption doesn't apply. Reduced public visibility is not reduced AML compliance — if anything, it's slightly more paperwork. * **The articles matter more than in an EOOD.** Budget for a lawyer who has actually drafted one of these, not a template. ## [What about Podnikio?](#what-about-podnikio) [Podnikio](https://www.podnik.io) supports Bulgarian companies with the full stack: registration end-to-end, invoicing, a business bank account, and a connected accountant handling bookkeeping, corporate tax, annual financial statements, and dividend declarations — for a single monthly fee. If you're unsure whether an EOOD or an EDPK fits your plans, that's exactly the kind of thing to settle in a consultation before you file anything, because changing it later is the expensive path. ## [Calculator](#calculator) The tax treatment is identical for both company forms, so the EOOD calculator applies to a DPK too. Enter your expected annual revenue to see the breakdown — and if you're weighing other countries, check out the [full tax calculator](/en/tax-calculator). ## [Sources](#sources) ### [Primary legislation](#primary-legislation) * [Commercial Act (_Търговски закон_)](https://lex.bg/laws/ldoc/-14917630) * [State Gazette (_Държавен вестник_) — the 2023 amendment](https://dv.parliament.bg/DVWeb/showMaterialDV.jsp?idMat=197682) * [Ministry of Economy — SME handbook on choosing a legal form](https://www.mi.government.bg/business-handbook-for-sme/izbor-na-pravna-forma-dokumenti-i-protsedura-po-registratsiya/) ### [Professional analysis](#professional-analysis) * [EY — 10 things we did (not) realize about the new entity](https://www.ey.com/en%5Fbg/insights/law/10-things-we-did--not--realize-in-respect-of-the-new-entity-with) (English) * [Kambourov & Partners — the variable capital company](https://www.kambourov.biz/en/publications/variable-capital-company) (English) * [Delchev & Partners — variable capital company](https://www.delchev-lawfirm.com/publications/variable-capital-company-en/) (English) * [Schoenherr Bulgaria — the variable capital company](https://sb-bg.com/2023/08/07/variable-capital-company/) (English) * [STZ Law — variable capital company introduced by Bulgarian Parliament](https://www.stzlaw.eu/news/variable-capital-company-introduced-by-bulgarian-parliament) (English) * [Deyan Sotirov — the new option for startup companies](https://www.sotirov.info/en/info-center/novini/startup-kompaniite-veche-s-nova-vazmozhnost-druzhestvo-s-promenliv-kapital) * [Advantage Austria — overview of the new company form](https://www.advantageaustria.org/bg/news/Rechtsrubrik%5FGesellschaft.bg.html) * [Trud i Pravo — _Дружество с променлив капитал_](https://trudipravo.bg/izbrani-statii/izbrani-statii-ot-epi-targovsko-pravo-i-obligatsionno-pravo/druzhestvo-s-promenliv-kapital/) This article is general information, not legal advice. The DPK has little case law behind it and much of how it behaves in practice depends on how the company's articles are drafted — check your specific situation with a lawyer or accountant before you register anything. ## [Contact us](#contact-us) If you're deciding between an EOOD and the new variable capital company, or want to talk through what your structure should look like before you register, reach out. We offer a free initial consultation. Read More → [2026-07-31EOOD Company Taxation in 2026Full 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 ](/en/blog/bulgaria/eood-company-taxation-2026)[overview article](/en/blog/bulgaria/eu-tax-heaven-for-freelancers-2026) for a comparison of both structures. ## [Main takeaways](#main-takeaways) ## [What it is](#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)](#rates-at-a-glance-2026) | | Rate | | -------------------------------------------------------------------- | ----------------------- | | Corporate tax | 10% | | Dividend tax | 5% | | DOO (state social insurance) | 14.8% | | DZPO (supplementary pension) | 5.0% | | NZOK (health insurance) | 8.0% | | **Total social** | **27.8%** | | Minimum monthly social base (Jan–Jul / Aug–Dec) | 550.66 EUR / 620.20 EUR | | **2026 minimum social insurance (7 months old + 5 months new base)** | **≈1,934 EUR** | 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](#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: 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** 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** **Step 4 — Net retained in company** 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** 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** ## [Examples — zero company expenses](#examples-zero-company-expenses) ## [The effect of 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: | | EUR | | -------------------- | ----------------- | | Company expenses | 10,000 | | Social contributions | 1,934 | | Tax base | 50,000 | | Corporate tax (10%) | 5,000 | | Net retained | 45,000 | | Dividend tax (5%) | 2,250 | | **Total tax** | **9,184 (15.3%)** | | **Net income** | **40,816** | Every euro of legitimate company expense reduces the effective rate by reducing the corporate tax base before dividends are calculated. ## [When EOOD beats freelancer](#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). 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](#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?](#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](#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). ## [Contact us](#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. Read More → [2026-07-31EU Tax Heaven for Freelancers in 2026?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).](/en/blog/bulgaria/eu-tax-heaven-for-freelancers-2026)[Main takeaways](#main-takeaways) ## [Who this applies to](#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?](#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_)](#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)](#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](#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](#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](#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. Read More → [Browse all articles](/en/blog) ## Frequently asked questions How long does it take to open an account? Most applications are verified within a day once your documents are submitted. Is it a real IBAN, or a shared one? It's a dedicated IBAN issued in your business's name, not a sub-account of a pooled or shared balance. What does it cost? The account is included as part of your Podnikio plan. For detailed breakdown, see the pricing page. Do I have to close my existing bank account? No, you're free to keep using another bank alongside Podnikio. Many freelancers and companies run both side by side, at least at first. ## Have a question? Send us a message and we'll get back to you as soon as possible. Email Your message Send Message Book a Free Consultation Get personalised advice for your business. No sales pressure, just a conversation. [Book Consultation](https://calendar.app.google/T2EiUCKSoALXoMEy6)