What is the difference between EOOD and OOD?

Only the number of owners: an EOOD has one, an OOD has two or more. Everything else, tax, 1 EUR minimum capital, liability, and filings, is the same. An EOOD becomes an OOD if a second owner joins.

Is an EOOD better than registering as a freelancer?

It depends on income, liability, and admin appetite. A freelancer gets a 7.5% effective income tax and lighter paperwork but personal liability. An EOOD gives limited liability and profit retention but heavier accounting. Compare in the [take-home calculator](/tools/tax-calculator).

How much does an EOOD cost to run?

Formation is cheap (EUR 28.12 state fee, EUR 1 capital). The real recurring cost is monthly accounting, typically EUR 125 to 325. See the [company cost calculator](/tools/company-cost-calculator) and the [accounting page](/accounting).

Can a foreigner own an EOOD?

Yes. Ownership is open to anyone, EU or not, resident or not. Ownership does not give you the right to live in Bulgaria, though; that is a separate residence question.

Does an EOOD need Bulgarian accounting?

Yes. Every EOOD owes monthly bookkeeping and an annual close, and files annually even when dormant. This is not optional and is why an accountant is part of the setup. See [accounting](/accounting).

What is an EOOD?

Q: What does EOOD mean?

EOOD (ЕООД) is a Bulgarian single-member limited liability company. One owner, limited liability, 10% corporate tax, and 5% on dividends taken out.

An EOOD is a Bulgarian single-member limited liability company: one owner, limited liability, and the 10% flat tax. Here is what it is, how it differs from an OOD and from registering as a freelancer, and who should pick which.

General information, not legal or tax advice.

Owner

EOOD is single-member

EUR 1

Minimum capital

10%

Corporate tax

Limited

Liability

EOOD in one paragraph

EOOD (ЕООД) stands for a single-owner limited liability company. Your liability is limited to the company's capital, the company pays 10% corporate tax on its profit, and you pay 5% when you take profit out as a dividend. It is the standard vehicle for a foreigner running a one-person business from or through Bulgaria.

EOOD vs OOD

The only difference is the number of owners. An EOOD has one; an OOD has two or more. Tax, the 1 EUR minimum capital, liability, and filing duties are identical. If a co-founder joins later, an EOOD converts to an OOD without starting over.

EOOD compared to OOD and to freelancer registration
	EOOD	OOD	Freelancer
Owners	1	2+	You (no company)
Separate legal entity	Yes	Yes	No
Liability	Limited	Limited	Personal
Profit tax	10% + 5% dividend	10% + 5% dividend	7.5% effective PIT
Accounting	Monthly required	Monthly required	Lighter

Freelancer here means a registered liberal profession (svobodna profesiya), covered on the freelancer taxes page.

EOOD vs registering as a freelancer

A freelancer is not a company: you invoice as an individual, your liability is personal, and you get the 25% statutory deduction that produces the 7.5% effective income tax. An EOOD is a separate legal person with limited liability and its own tax return, but heavier admin.

Who should pick which

Pick an EOOD if you want limited liability, plan to keep profit in the company, or need a company for contracts and banking.
Pick a freelancer registration if you are a solo service provider with modest income and low liability risk, and want the lowest admin.
Pick an OOD if you are starting with a partner from day one.
Unsure? Run both through the take-home calculator and the company cost calculator.

Written by

Petar Georgiev

Founder, BulgariaHQ

Petar runs Kohi Solutions Ltd, a Bulgarian EOOD registered in Veliko Tarnovo (EU VAT BG206220247), and has built and shipped software products from Bulgaria through it. He writes these guides from the paperwork he has actually filed, and cites the primary source for every number. He is not an accountant or a lawyer, and says so on every page that touches tax or immigration.

Last reviewed July 23, 2026

Frequently asked questions

Sources

Every figure on this page is checked against a primary source. Dates show when we last verified it.

Commercial Register, Registry Agency of BulgariaRegistry Agency of Bulgaria · checked Jul 23, 2026
Corporate income tax, flat 10%PwC Worldwide Tax Summaries · checked Jul 23, 2026