Freelancer or EOOD in Bulgaria? Tax comparison calculator
Compare how much you keep as a self-employed freelancer and as the owner of a one-person company (EOOD) with 10% corporate tax and 5% dividend tax.
Simplified comparison: all profit is paid out as a dividend, and the owner is insured as self-employed. A salary from the company, VAT and other options are not included.
Ask an accountant before you decide. This is an estimate, not tax advice.
Freelancer or EOOD: what changes
A freelancer deducts a fixed 25% of income and pays 27.8% social security on the rest (up to €2,300.00 a month) plus 10% income tax.
An EOOD (one-person limited company) pays 10% corporate tax on its real profit, and you pay 5% dividend tax when that profit is paid out to you. The owner still pays social security but can choose the minimum insurable income.
As a rule of thumb, an EOOD tends to win at higher incomes and when real expenses are above 25% of revenue. At lower incomes freelancing is simpler and cheaper to run.
Frequently asked questions
Is an EOOD better than freelancing in Bulgaria?
It depends on the numbers. With €60,000 revenue, €3,000 expenses and the owner insured on the minimum: eood leaves you more by €558.53 a year.
What is the corporate tax rate in Bulgaria?
A flat 10% on company profit, one of the lowest in the EU.
What is the dividend tax in Bulgaria?
5% on dividends paid to individuals.
Can a foreigner open an EOOD in Bulgaria?
Yes. EU and non-EU citizens can own a Bulgarian EOOD. It is registered in the Commercial Register, usually with help from a lawyer or accountant.
Does the EOOD owner pay social security?
Yes. An owner who manages the company is insured as self-employed, at least on the minimum insurable income.