Freelancing in Bulgaria: sole trader or EOOD?

At a glance

Total time: Register within days
Official fees: 10% / 15% / 10% + 5%
Where: NAP or Commercial Register
Bulgarian needed?: An accountant helps

If you work for yourself in Bulgaria, you have three main ways to do it: as a freelancer in your own name, as a sole trader (ET), or through a one-person limited company (EOOD). Each is taxed differently and comes with different paperwork. This guide compares them so you can decide with your accountant.

The three options at a glance

	Freelancer	Sole trader (ET)	Company (EOOD)
Income tax	10%, after a 25% standard deduction	15% on profit	10% corporate tax, then 5% on dividends
Business expenses	Not deducted (the 25% replaces them)	Actual expenses deducted	Actual expenses deducted
Registration	Register with NAP	Commercial Register	Commercial Register
Bookkeeping	Simple	Full accounts	Full accounts
Personal liability	Unlimited	Unlimited	Limited to the company
Good for	Low costs, simple work	Rarely the best choice	Higher income, real costs, clients who prefer companies

Option 1: freelancer in your own name

This is the simplest route for consultants, designers, developers, translators and other professionals. You register with the National Revenue Agency (NAP) as a self-insured person and invoice clients in your own name.

Tax: 10% on your income after social security contributions and a standard 25% deduction for expenses. You don’t need receipts for that 25%, but you can’t deduct real expenses either.
Contributions: 27.8% of the insurable income you choose, plus an optional 3.5% for sickness and maternity benefits.
Payments: quarterly advance tax, and an annual return by 30 April.

Option 2: sole trader (ET)

A sole trader is a registered business in your own name. Profit is taxed at 15% and you keep full accounts. You remain personally liable for business debts. Because the tax is higher than both other options, an ET is rarely the best choice for expats today, but it can suit some trades.

Option 3: one-person company (EOOD)

An EOOD is a limited company with one owner. The company pays 10% corporate tax on its profit. When you take the profit out as dividends, you pay a further 5%. Your personal assets are protected if the company gets into debt.

You can deduct real business costs: equipment, software, coworking, travel.
As the manager, you usually pay social security contributions on your chosen insurable income.
You need an accountant, annual financial statements and a corporate tax return.
An EOOD can also be the basis for a non-EU citizen’s residence, but only if it employs at least 10 Bulgarian citizens.

VAT

Whatever you choose, you must register for VAT within 7 days if your turnover passes €51,130 in a calendar year. If you work for businesses in other EU countries, you may need a special VAT registration even below that: check with your accountant before you send your first invoice.

Non-EU citizens

To freelance in Bulgaria as a non-EU citizen, you need a freelance permit from the Ministry of Labour and Social Policy before you can get residence on that basis. See our residence guide for non-EU citizens.

Which one is right for you?

Few costs and simple invoicing: freelancing in your own name usually wins.
Real business costs, employees, or clients who only work with companies: consider an EOOD.
Unsure: an accountant can compare all three with your real numbers in under an hour.

Sources

General information, not tax or legal advice. Talk to a Bulgarian accountant before you register.