Picker · 4 questions
Comparison table
| Criterion | EOOD / OOD | Sole trader (ET) | JSC (AD) | Freelancer |
|---|---|---|---|---|
| Liability | limited to the capital | unlimited, with personal assets | limited to the capital | unlimited |
| Minimum capital | €1 | none | €25,565 | none |
| Income tax | 10% CIT + 5% dividend | 15% under the Personal Income Tax Act | 10% CIT + 5% dividend | 10% under the Personal Income Tax Act after a 25% flat-rate deduction |
| Social security | self-insured person, chosen income | self-insured person, annual reconciliation | directors under a management contract | self-insured person, reconciliation |
| Registration | Commercial Register, 1–2 days | Commercial Register, 1–2 days | Commercial Register, 3–7 days | BULSTAT, 1–3 days |
| Annual reports | annual financial statement filed with the Register by 30 Sep | simplified annual financial statement | annual financial statement with audit above thresholds | no annual financial statement; annual tax return by 30 Apr |
| Best suited for | most small businesses and freelancers | small-scale trade, crafts | investors, more complex structure | consultants, creatives, IT contractors |
Quick guide
- ✓EOOD — single owner, expected profit above ~€15,000 a year, or working with EU companies.
- ✓OOD — two or more partners; the articles of association govern the relationship.
- ✓Freelancer — consultants with low costs: a 25% flat-rate deduction, no bookkeeping under the Accountancy Act.
- ✓Sole trader (ET) — losing popularity because of unlimited liability and the 15% rate.
- ✓JSC (AD) — for investors and more complex ownership structures.
Example: €30,000 annual profit
| EOOD (self-insured on €620.20) | Freelancer | |
|---|---|---|
| Annual social security | ~€2,069 (27.8%) | ~€2,069 on the minimum + reconciliation |
| Tax | 10% CIT + 5% dividend ≈ €4,000 | 10% on 75% of income ≈ €2,250 before reconciliation |
| Bookkeeping | subscription from €150/mo. | one annual closing |
| Comment | more favorable with growth and VAT | cheaper with low costs and no employees |
The figures are indicative and depend on the chosen insurance income and actual costs. For a specific calculation, use the free consultation.
Frequently asked questions
Can I change the legal form later?
+−
A sole trader (ET) can convert into an EOOD by transferring the enterprise; an EOOD becomes an OOD by admitting a partner. Moving from freelancer status to an EOOD requires a new registration.
What are "statutory flat-rate expenses"?
+−
For freelance/liberal professions, the law recognizes 25% of income as expenses without supporting documents; the remainder is taxed. Actual costs are not taken into account.
Is there a minimum capital requirement for an OOD in 2026?
+−
Yes — €1. In practice, capital of €50–€500 is registered for a better standing with banks and partners.
Sources
Commerce Act; Personal Income Tax Act (Art. 29, Art. 48); Corporate Income Tax Act; Accountancy Act; 2026 State Social Insurance Budget Act. Verified on 3 September 2026.
Please note
Bulsmetka is a private accounting firm, not a government authority. This information is general in nature and does not replace individual consultation. State fees are invoiced at cost.