Choosing between a Bulgarian single-member OOD (EOOD) and a sole trader (ET) is one of the most common questions for small businesses. In 2026, with the euro in daily use, comparing tax and social-security burdens matters even more for cash-flow planning. This article gives a structured comparison with a table and numeric sketches—not a substitute for tailored legal or accounting advice.

Quick comparison table

Topic	OOD	Sole trader (ET)
Legal entity	Company	Individual as trader
Profit-level tax	Corporate income tax (typically 10% on tax profit in standard cases)	Personal income tax rules for ET activity
Taking money out	Often dividends + 5% withholding in typical cases	After-tax result for the individual; no “dividend” layer
Liability	Mostly limited to contribution	Broad personal liability (except special ET forms)

Illustrative numbers

For €18,000 taxable profit in a simplified OOD path: 10% CIT ≈ €1,800; remaining €16,200; if paid as dividend with 5% withholding, about €810 tax, ~€15,390 net. For ET, 10% personal tax on taxable income is often a starting point, plus mandatory self-insurance contributions on the chosen base—exact amounts depend on 2026 thresholds from NAP.

Use our LLC tax calculator and sole trader calculator for scenario modelling alongside a professional advisor.