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Freelancers in Bulgaria: Self-Employed vs EOOD | 2025 Guide
One of the most common questions we get from freelancers and IT specialists is simple but important:
Should I register as self-employed or set up an EOOD (single-owner limited company) in Bulgaria? Let’s break it down clearly.
Self-Employed (Freelancer)
This option is available only if you have Bulgarian residency. EU, EEA, and Swiss citizens can register if they hold a residence certificate. Non-EU citizens need both a residence permit and, in most cases, a work permit.
- 10% personal income tax, but only 75% of your income is taxable due to 25% recognized expenses.
- Monthly social security contributions apply, based on minimum and maximum thresholds.
- Simple, cost-effective, but not available without Bulgarian residency.
EOOD (Single-Owner Limited Company)
This is the most common structure for foreigners without residency in Bulgaria. You can own and manage an EOOD without a residence permit, making it accessible and flexible.
- 10% corporate tax on company profits.
- 5% dividend tax when distributing profits.
- Ability to deduct actual business expenses and reinvest profits.
- Option to register as self-insured and pay only minimum social contributions.
Comparison Table: Self-Employed vs EOOD
| Criteria | Self-Employed | EOOD |
|---|---|---|
| Residency Required | Yes | No |
| Taxation | 10% income tax (after 25% expense deduction) | 10% corporate tax + 5% dividend tax |
| Expense Deduction | Fixed 25% | All real business expenses |
| Social Security | Monthly contributions based on thresholds | Contributions if salaried or self-insured |
| Best For | Residents with limited expenses | Foreigners, IT specialists, international clients |
How to Decide
If you have Bulgarian residency and limited expenses, self-employment may be more efficient. If you don’t have residency, EOOD is your only option. It also offers flexibility for growth and a more professional image for international clients.
Ready to start your business in Bulgaria? Let us guide you through the process.
At ASB Accounting Services Bulgaria, we help freelancers and IT professionals choose the right setup, register properly, and remain fully compliant with Bulgarian law.
Contact Us today to discuss your options and take the first step toward success in Bulgaria.
This information is provided for general guidance only and does not constitute tax, accounting, or legal advice. Each situation requires individual review.