When an EOOD is the right choice
- ✓A single owner who wants limited liability — unlike a sole trader (ET)
- ✓Freelancers and IT specialists whose turnover makes 10% corporate tax + 5% dividend tax more favourable than taxation under the Personal Income Tax Act
- ✓Online stores and services that will work with companies in the EU
- ✓Foreign nationals who want a Bulgarian company with 100% ownership
Tax burden for an EOOD (2026)
| Tax / contribution | Rate | Base |
|---|---|---|
| Corporate tax | 10% | taxable profit (Corporate Income Tax Act) |
| Dividend tax | 5% | profit distributed to an individual |
| VAT | 20% / 9% | once VAT-registered; mandatory above €51,130 annual turnover |
| Owner's contributions as a self-insured person | 27.8% (31.3% with supplementary pension) | chosen insurable income between €620.20 and €2,300 (from 1 August 2026) |
Work out the monthly contributions with the social security calculator →
EOOD or freelance status — which income level
| Annual income | EOOD (self-insured on minimum + dividend) | Freelance status (25% allowance) |
|---|---|---|
| €20,000 | ≈ €4,700 taxes and contributions + accounting | ≈ €4,100 (contributions with annual settlement + tax) |
| €40,000 | ≈ €7,600 | ≈ €8,900 |
| €80,000 | ≈ €13,400 | ≈ €16,300 (+ mandatory VAT registration) |
Indicative, based on 2026 rates and insurance on the minimum income; does not account for the EOOD's actual expenses. Get an exact calculation in a free consultation.
Steps and timeline
- 1
Details and quote
Company name (3 options), registered address, business activity, capital. Quote on the same day.
- 2
Documents
Articles of association, resolution appointing the director, declarations, specimen signature.
- 3
Filing
Capital account, application A4 with a QES filed with the Commercial Register.
- 4
UIC
Entry within 1–2 business days. We notify you and hand over the full set of documents.
After registration
The new EOOD's first obligations: registering the self-insured person with the NRA within 7 days of starting activity (declaration OKd-5), opening an operating bank account, and, if needed, VAT registration and a cash register. Deadlines for the year: Working days 2026. With an accounting subscription we handle all of this at no extra charge.
Frequently asked questions
Can the director be a different person than the owner?
+−
Yes. The owner of the capital appoints a director by resolution; the director can be a different individual, including a foreign national.
Does the owner have to pay social security contributions?
+−
If the owner performs personal work for the company, they must register as a self-insured person on a chosen income between the minimum and maximum insurable income. If they only receive dividends and don't work in the company, no contributions are due.
Can I bring in a shareholder later?
+−
Yes — by transferring part of the shares or increasing the capital; the company becomes an OOD. See transfer of shares.
Sources
Commerce Act; Commercial Register and Register of Non-Profit Legal Entities Act; Tariff of State Fees Collected by the Registry Agency; Accountancy Act; Corporate Income Tax Act; Personal Income Tax Act; VAT Act (State Gazette issue 115/30.12.2025); Social Insurance Budget Act for 2026. Verified on 3 September 2026.
Important
Bulsmetka is a private accounting firm, not a government body. Information is general and does not replace individual advice. State fees are invoiced at cost.