Social security is the single largest mandatory personal cost for an EOOD owner in Bulgaria. It is not optional (unless you structure your income correctly), and the exact amount depends on choices you make when registering as a self-insured person. As a law firm that sets up and advises hundreds of foreign-owned EOODs, we break down every contribution fund, the exact 2026 rates, and the optimization strategies that save our clients thousands per year. All figures are in EUR following Bulgaria's euro adoption on January 1, 2026.
The range depends on two decisions: your chosen insurable income base (minimum EUR 550.66 to maximum EUR 2,111.64 per month) and whether you opt into the sickness and maternity fund. Below, we explain every fund, the exact employer/employee split, and what you actually get for your money.
Budget status note (April 2026): Bulgaria's full 2026 state budget has not been adopted. Parliament extended the 2025 budget into 2026 under transitional rules. This means the 2025 contribution rates, minimum insurable income (EUR 550.66), and maximum insurable income (EUR 2,111.64) remain in effect. The draft 2026 budget proposed a 2 percentage point pension fund increase and higher thresholds, but these changes have not been enacted. This guide uses the currently effective rates.
Who Pays and Why
Under the Bulgarian Social Security Code (Kodeks za sotsialno osiguryavane, KSO), the sole owner and manager of an EOOD is classified as a self-insured person (samoosiguryavashto se litse / самоосигуряващо се лице). This is a specific legal category that applies to individuals who manage and control their own business — including EOOD owners who serve as their own managers.
A self-insured person is personally obligated to calculate and pay social security contributions each month. Unlike employees, where the employer handles payroll deductions, the EOOD owner bears full responsibility for both the "employer" and "employee" portions. In practice, both portions come from the EOOD's funds — the employer portion is a company expense (tax-deductible), and the employee portion is deducted from the owner's gross management remuneration.
The legal basis for insurance is typically one of two arrangements:
- Management contract (договор за управление и контрол / ДУК): The standard and most common approach. The EOOD's founding documents appoint the owner as manager, and the management relationship creates the obligation to insure.
- Employment contract: Less common for sole owners. An employment contract with yourself is legally possible but creates unnecessary payroll complexity. The management contract route is overwhelmingly preferred.
The obligation to insure arises from the activity itself, not from whether you pay yourself. Even if you choose not to take a salary, if you are actively managing the EOOD (signing documents, invoicing clients, making business decisions), you must register as self-insured and pay contributions. The only exception is a truly dormant company where the owner performs no management activity whatsoever.
Registration requirement: Within 7 days of starting activity, the EOOD owner must file an OKD-5 declaration with the National Revenue Agency (NRA), declaring the start of self-insurance and the chosen type of coverage (with or without sickness/maternity). This declaration also specifies the insurable income base you choose to pay on.
The Four Contribution Funds
Social security contributions in Bulgaria are split across four distinct funds, each covering a different type of risk. For self-insured persons born after December 31, 1959 (which applies to most EOOD owners), the total rate ranges from 27.8% to 31.3% of the chosen insurable income, depending on whether you opt into the sickness and maternity fund.
| Fund | Total Rate | Employer Share | Employee Share | Mandatory? |
|---|---|---|---|---|
| Pension Fund (ДОО) | 14.8% | 8.22% | 6.58% | Yes |
| Supplementary Pension (ДЗПО) | 5.0% | 2.8% | 2.2% | Yes* |
| Health Insurance (ЗО) | 8.0% | 4.8% | 3.2% | Yes |
| General Sickness & Maternity (ОЗМ) | 3.5% | 2.1% | 1.4% | No** |
| Total (with ОЗМ) | 31.3% | 17.92% | 13.38% | |
| Total (without ОЗМ) | 27.8% | 15.82% | 11.98% |
* ДЗПО applies to persons born after December 31, 1959. Persons born before 1960 pay a higher Pension Fund rate (19.8%) instead of ДЗПО.
** ОЗМ is optional for self-insured persons. See the opt-out section below.
Here is what each fund covers:
1. Pension Fund (ДОО) — 14.8%
This is the largest contribution and funds your state pension (first pillar). It covers old-age pension, disability pension due to general illness, and survivor's pension. Every month you pay into this fund counts as one month of insured service (osiguritelen stazh), which accumulates toward your retirement eligibility. In 2026, men need 64 years and 9 months of age plus a minimum length of service to qualify for a full pension; women need 62 years and 6 months.
2. Supplementary Mandatory Pension Insurance (ДЗПО) — 5.0%
This is the second pension pillar — a mandatory personal pension account managed by a private Universal Pension Fund (UPF) of your choice. Unlike the first pillar (which is a pay-as-you-go system), these contributions are invested and accumulate in your individual account. You can choose your fund provider (UBB Pensions, NN, Doverie, Allianz, etc.), and you receive a supplementary pension on top of the state pension when you retire.
3. Health Insurance (ЗО) — 8.0%
Health insurance contributions fund the National Health Insurance Fund (NHIF / НЗОК), which provides access to Bulgaria's public healthcare system. With active health insurance, you can visit general practitioners, specialists, and hospitals under NHIF contracts without additional fees (beyond nominal co-pays). If you stop paying health insurance for more than three consecutive months, you lose your NHIF coverage and must pay out of pocket until you restore your contribution record.
4. General Sickness and Maternity (ОЗМ) — 3.5%
This fund covers paid sick leave (from the 4th day of illness onward) and maternity benefits (pregnancy leave, childbirth leave, and childcare leave for up to 410 days). The employer pays the first three days of sick leave; after that, the National Social Security Institute (NSSI / НОИ) pays from this fund. For self-insured persons, this coverage is optional — you can choose not to pay it, saving 3.5% but losing access to these benefits.
Note on unemployment and work accident insurance: Self-insured persons (EOOD owners insuring via management contract) do not pay into the Unemployment Fund (1%) or the Work Accident and Occupational Disease Fund (0.4-1.1%). These funds apply only to persons insured under employment contracts. This is one reason the self-insured total rate (27.8-31.3%) is lower than the full employment rate (32.7-33.4%).
Minimum vs Maximum Contributions
Self-insured persons choose a monthly insurable income base between the minimum (EUR 550.66) and the maximum (EUR 2,111.64). You pay contributions as a percentage of this base. The overwhelming majority of EOOD owners choose the minimum to reduce costs.
Scenario A: Minimum Base (EUR 550.66/month)
| Fund | Rate | Monthly Amount (EUR) |
|---|---|---|
| Pension Fund (ДОО) | 14.8% | €81.50 |
| Supplementary Pension (ДЗПО) | 5.0% | €27.53 |
| Health Insurance (ЗО) | 8.0% | €44.05 |
| Sickness & Maternity (ОЗМ) | 3.5% | €19.27 |
| Total (with ОЗМ) | 31.3% | €172.36 |
| Total (without ОЗМ) | 27.8% | €153.08 |
Annual cost at minimum base: EUR 2,068 (with ОЗМ) or EUR 1,837 (without ОЗМ). This is the most common scenario — EOOD owners paying the minimum to preserve cash for dividend distribution.
Scenario B: Maximum Base (EUR 2,111.64/month)
| Fund | Rate | Monthly Amount (EUR) |
|---|---|---|
| Pension Fund (ДОО) | 14.8% | €312.52 |
| Supplementary Pension (ДЗПО) | 5.0% | €105.58 |
| Health Insurance (ЗО) | 8.0% | €168.93 |
| Sickness & Maternity (ОЗМ) | 3.5% | €73.91 |
| Total (with ОЗМ) | 31.3% | €660.94 |
| Total (without ОЗМ) | 27.8% | €587.04 |
Annual cost at maximum base: EUR 7,931 (with ОЗМ) or EUR 7,044 (without ОЗМ). This scenario only makes sense if you want to maximize your future state pension and supplementary pension benefits. For most foreign EOOD owners, the minimum base strategy is far more cost-efficient.
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Social security contributions are not a tax that disappears into a void. Each fund provides specific, tangible benefits. Here is what your contributions buy you.
Pension Credits (ДОО + ДЗПО)
Every month of contributions counts as one month of insured service toward your Bulgarian state pension. The pension amount is calculated based on your insured income and length of service. Additionally, the 5% ДЗПО contribution accumulates in your personal pension account at the Universal Pension Fund, which you receive as a supplementary pension at retirement. If you leave Bulgaria before retirement, you can transfer your second-pillar pension fund balance under EU portability rules.
Public Healthcare (ЗО)
Active health insurance contributions give you full access to the NHIF public healthcare system: GP visits, specialist referrals, hospital treatment, prescription drug subsidies, and emergency care. Bulgaria's NHIF is recognized across the EU — you receive a European Health Insurance Card (EHIC) for temporary healthcare access in other EU/EEA countries.
Sick Leave and Maternity Benefits (ОЗМ)
If you opt into the sickness and maternity fund, you become eligible for:
- Paid sick leave: From the 4th day of illness, the NSSI pays a daily benefit equal to 80% of your average insurable income (the first 3 days are paid by the EOOD at 70%). Eligibility requires at least 6 months of contributions to this fund.
- Maternity leave: 410 calendar days of paid maternity leave at 90% of average insurable income for the preceding 24 months. This is one of the longest and most generous maternity leave programs in the EU.
- Pregnancy benefits: 45 days of paid pregnancy leave before the expected due date.
Can You Opt Out of Sickness and Maternity?
Yes. Self-insured persons in Bulgaria have the explicit right to choose not to pay into the General Sickness and Maternity fund (ОЗМ). This is one of the unique features of the self-insured status — employees do not have this choice.
The decision is made in two ways:
- At registration: When filing the OKD-5 declaration with the NRA, you declare whether you insure for ОЗМ or not.
- Each January: By January 31, self-insured persons can change their insurance type for the current calendar year by filing a new OKD-5 declaration. This is the only time of year you can switch.
The financial impact of opting out:
| Scenario | Monthly Savings | Annual Savings | What You Lose |
|---|---|---|---|
| Minimum base (EUR 550.66) | €19.27 | €231 | Sick leave, maternity benefits |
| Maximum base (EUR 2,111.64) | €73.91 | €887 | Sick leave, maternity benefits |
Who should NOT opt out: If you are a woman planning pregnancy, or if you have health conditions that may require extended sick leave, do not opt out. Bulgaria's 410-day maternity leave at 90% of income is extremely valuable — the cost of 3.5% contributions is trivial compared to the benefits you receive. Also note that you need at least 6 months of ОЗМ contributions before you are eligible, so you cannot simply opt in a few months before you need it.
For most foreign male EOOD owners with private health insurance as a backup, opting out saves EUR 231/year at the minimum base — a modest but real saving. The decision ultimately depends on your personal circumstances and risk tolerance.
Salary + Dividends Structure
We help EOOD owners set up the optimal compensation structure — minimum salary for social security, maximum dividends for tax efficiency.
Get Your Personalized Plan →The Dividend Advantage
This is the single most important tax planning fact for EOOD owners in Bulgaria: dividend income is not subject to social security contributions.
When your EOOD distributes profits to you as dividends, the company withholds 5% dividend tax at source and pays it to the NRA. That is the only deduction. No pension contributions. No health insurance. No sickness fund. Nothing else. Combined with the 10% corporate income tax already paid on the profits, the total effective tax on distributed EOOD profits is 15% (10% CIT + 5% dividend WHT).
This creates a powerful optimization strategy:
- Step 1: Pay yourself the minimum salary of EUR 550.66/month through the EOOD (or the applicable minimum insurable income for your activity).
- Step 2: Pay social security contributions on that minimum base — EUR 153-172/month depending on ОЗМ choice.
- Step 3: Leave remaining profits in the EOOD until needed, then distribute as dividends at 5%.
The contrast is stark. If you increase your salary beyond the minimum, every additional euro is subject to approximately 27.8-31.3% social security (up to the maximum base) plus 10% income tax. If you take the same amount as dividends, you pay only the 5% withholding tax — saving over 20 percentage points on every euro.
Example: An EOOD earns EUR 5,000/month in revenue with EUR 1,000 in expenses. Net profit before salary: EUR 4,000. The owner pays minimum salary of EUR 550.66, with total social security cost of approximately EUR 172. After 10% CIT on remaining profit, the owner distributes dividends at 5%. Total tax burden on the full profit: approximately 15%. If instead the owner took a EUR 3,000 salary, social security alone would consume over EUR 650/month (hitting the maximum base), plus 10% income tax on the salary. The dividend strategy saves thousands per year.
For a complete breakdown of salary versus dividend structures, see our dedicated guide on how to pay yourself from an EOOD in Bulgaria.
Annual Reconciliation
Self-insured persons pay contributions monthly based on their chosen advance base (between EUR 550.66 and EUR 2,111.64). However, at the end of the year, the NRA reconciles your actual income against your advance contributions. If your actual income was higher than the base you chose, you owe additional contributions.
The reconciliation works through two forms attached to your annual personal income tax return (filed by April 30 of the following year):
- Table 1 (Таблица 1): Reconciles social security contributions (pension, supplementary pension, sickness/maternity). Compares advance contributions paid monthly against contributions calculated on actual annual income.
- Table 2 (Таблица 2): Reconciles health insurance contributions. Same logic — compares advance payments against actual income-based calculations.
The actual annual insurable income is determined from your tax return — specifically, the income declared from management activity (or employment, if applicable). Dividend income is excluded from this reconciliation, confirming again that dividends do not trigger social security.
Practical impact: If you choose the minimum base (EUR 550.66/month) and your actual management remuneration stays at or below that level, you owe nothing additional. The reconciliation produces a zero difference. This is another reason the minimum salary strategy works — by keeping your formal salary at the minimum, you avoid any reconciliation surprises. Your accountant prepares Tables 1 and 2 as part of the annual tax filing.
Annual Tax Filing Support
We connect you with English-speaking accountants who handle your personal tax return, Tables 1 and 2, and all social security reconciliation.
Get Accountant Introduction →Common concerns about EOOD owner social security:
"Can I just not pay social security and take only dividends?" No — if you are actively managing the EOOD, you must register as self-insured and pay contributions on at least the minimum base. The NRA cross-references company registrations with insurance records. Non-compliance results in back-dated contributions plus interest (10% per annum) and fines of EUR 50-500 per violation.
"I have private health insurance — do I still need to pay ЗО?" Yes. The 8% health insurance contribution is mandatory regardless of any private insurance you hold. You cannot opt out of ЗО. Private insurance is supplementary — it does not replace the mandatory NHIF contribution.
"I live abroad and manage the EOOD remotely — do I still pay?" If you are a Bulgarian tax resident or if your management activity is conducted from Bulgaria, yes. If you are a tax resident of another EU country, EU social security coordination rules (Regulation 883/2004) may apply, potentially assigning your social security obligations to your country of residence instead. This requires an A1 certificate. Consult a lawyer before assuming you are exempt.
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Frequently Asked Questions
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Is an EOOD owner a self-insured person in Bulgaria?
Do I pay social security on dividends from my EOOD?
Can I opt out of sickness and maternity insurance as an EOOD owner?
What is the maximum insurable income in Bulgaria for 2026?
What is the annual reconciliation for self-insured persons?
Do EOOD owners pay unemployment insurance?
What happens if I do not register as self-insured?
Disclaimer: This article provides general guidance on social security contributions for EOOD owners in Bulgaria based on legislation currently in effect as of April 2026. Bulgaria is operating under extended 2025 budget rules — the full 2026 state budget has not been adopted. Contribution rates (Pension Fund 14.8%, ДЗПО 5%, Health 8%, ОЗМ 3.5%), the minimum insurable income (EUR 550.66), and the maximum insurable income (EUR 2,111.64) reflect the currently applicable transitional provisions. Corporate income tax is 10% and dividend withholding tax is 5%, giving a combined rate of 15%. Rates may change if a new budget is adopted. This article does not constitute legal or tax advice. For personalized guidance, consult a qualified Bulgarian lawyer or accountant. Last updated: April 8, 2026.