Can I Run a Bulgarian EOOD and Keep My Job in Another Country?

Yes, you can own and manage a Bulgarian EOOD while employed full-time in another EU country. Thousands of EU citizens already do it. There is no prohibition in Bulgarian law, no prohibition in EU law, and — thanks to EU Regulation 883/2004 — there are clear rules for exactly how social security and taxes work in this situation. But "clear" does not mean "simple." You need to understand which country gets your social security, how your EOOD's profits are taxed, and what your employer can and cannot do about it. This guide covers every angle.

Is It Legal?

Unambiguously yes. Two legal frameworks guarantee this right.

EU freedom of establishment (Article 49 TFEU) gives every EU citizen the right to set up and manage a company in any EU member state. A German employee can register an EOOD in Bulgaria. A French employee can register an EOOD in Bulgaria. A Polish employee can register an EOOD in Bulgaria. There is no requirement to live in Bulgaria, be a Bulgarian tax resident, or hold Bulgarian citizenship.

Bulgarian commercial law has no restriction on who can be the sole owner (ednolichen sobstvenik) of an EOOD. Any natural or legal person — Bulgarian or foreign — can found and manage an EOOD. There is no residency requirement for the manager (upravitel) either. You can be registered as the manager while living and working in Berlin, Amsterdam, or Paris.

The practical question is not whether you can do it, but how to handle social security, taxes, and your employment contract correctly. That is where most people get confused.

Social Security — the Big Question

This is the most important section of this article. Get this wrong, and you risk double contributions, penalties, or gaps in coverage.

The One-Country Rule

EU Regulation 883/2004 establishes a fundamental principle: you can only be subject to the social security legislation of one EU member state at a time. No exceptions. If you work in two countries — employed in one, self-employed in another — the Regulation determines which country "wins."

Article 13: Employment Trumps Self-Employment

Article 13(3) of Regulation 883/2004 provides the rule that applies to you: a person who is employed in one member state and simultaneously self-employed in another member state is subject to the social security legislation of the member state where they are employed.

In plain language: if you are employed in Germany and manage an EOOD in Bulgaria (which makes you self-employed in Bulgaria for social security purposes), you pay social security only in Germany. Not in Bulgaria. Not in both countries. Only in Germany.

This means:

• No Bulgarian social security contributions. The EOOD does not need to register you as a self-insured person (samoosigiuriavashto se litse) in Bulgaria. No pension contributions, no health insurance, no unemployment insurance — nothing to the Bulgarian NRA for your personal social security.
• Your German social security covers you fully. Your pension, health insurance, maternity, sick leave, and unemployment rights all come from the German system (or whichever EU country employs you).
• The EOOD still pays corporate obligations. If the EOOD hires employees in Bulgaria, it pays employer social security contributions for them. But for you as the owner-manager, there is no Bulgarian SS obligation.

The A1 Certificate

The A1 certificate (formally "Certificate concerning the applicable legislation") is the document that proves which country's social security system applies to you. It is issued by the competent social security institution in the country where you are employed.

If you are employed in Germany, you request the A1 from the Deutsche Rentenversicherung (or your Krankenkasse, depending on the situation). If employed in the Netherlands, from the SVB. If in France, from URSSAF. Each EU country has its own issuing authority.

What If You Have No Employer (Freelancer in Country A)?

The "employment trumps self-employment" rule only applies when you are genuinely employed under an employment contract in one country and self-employed in another. If you are self-employed in both countries (for example, a freelancer in Germany who also owns an EOOD in Bulgaria), different rules under Article 13(2) apply — typically, you are insured in your country of residence. That is a different scenario and requires separate analysis.

Tax Implications

Social security goes to one country. Taxes, however, involve at least two countries — and potentially a third if you are not careful.

The EOOD: Bulgarian Corporate Tax

Your EOOD is a Bulgarian tax resident. It pays 10% corporate income tax (CIT) on its worldwide profits under the Bulgarian Corporate Income Tax Act (CITA). This is among the lowest CIT rates in the EU. The tax is paid annually (with advance installments for larger companies), and your Bulgarian accountant handles all filings.

Dividends: 5% Withholding Tax in Bulgaria

When you distribute dividends from the EOOD to yourself, Bulgaria withholds 5% dividend withholding tax (WHT) under Articles 194 and 200 of the CITA. The EOOD remits this to the NRA on a quarterly basis. Combined with the 10% CIT already paid on profits, your effective rate on distributed profits is 15% (10% CIT + 5% dividend WHT).

Your Personal Tax: Based on YOUR Residence

Here is the part people miss: your personal income tax is determined by your tax residency, not by where the EOOD is registered.

If you are a German tax resident, Germany taxes your worldwide income — including Bulgarian dividends. If you are a Dutch tax resident, the Netherlands taxes your worldwide income. The same applies for France, Spain, Austria, or any other EU country.

However, you do not pay tax twice on the same income. Bulgaria has double tax treaties (DTTs) with all EU member states. The 5% Bulgarian dividend WHT is creditable against your personal income tax in your country of residence. For example:

• Germany: Dividends are taxed at 26.375% (Abgeltungsteuer). You credit the 5% Bulgarian WHT and pay 21.375% to Germany.
• Netherlands: Dividends from a substantial interest (5%+ holding) are taxed at 26.9% in Box 2. You credit the 5% Bulgarian WHT and pay 21.9% to the Netherlands.
• France: Dividends are subject to 30% flat tax (PFU). You credit the 5% Bulgarian WHT and pay 25% to France.

The net effect: your Bulgarian EOOD pays less corporate tax (10% vs 25-30% in Western Europe), but your personal dividend tax is topped up to your home country's rate. The advantage is real but smaller than 10% CIT alone suggests. For a detailed comparison, see our article on how to pay yourself from an EOOD.

Permanent Establishment Risk

This is the risk that most online guides either ignore or explain poorly. It matters.

The issue: if you manage your Bulgarian EOOD from your home office in Germany (or any other country), Germany's tax authority (Finanzamt) may argue that the EOOD has a permanent establishment (PE) in Germany. Under Article 5 of the Bulgaria-Germany DTT (and equivalent articles in other DTTs), a PE exists where a company has a "fixed place of business" or where a person "habitually exercises authority to conclude contracts" on behalf of the company.

If Germany successfully claims a PE, the EOOD's profits attributable to that PE would be taxable in Germany — at German corporate tax rates (approximately 30%), not Bulgarian rates (10%). This would eliminate the main tax advantage of the Bulgarian EOOD.

How to Minimize PE Risk

• Maintain real operational substance in Bulgaria. Virtual office, Bulgarian accountant, КЕП for electronic filings, Bulgarian bank account. The EOOD should have a genuine Bulgarian operational footprint, not just a registration address.
• Do not sign EOOD contracts from your home address. If you negotiate and conclude contracts on behalf of the EOOD from Germany, that creates a strong PE argument. Use the Bulgarian address for contract execution.
• Avoid using your home as the EOOD's sole place of management. Board resolutions, shareholder decisions, and key management decisions should be documented as occurring in Bulgaria (even if you sign them remotely via КЕП).
• Keep your roles separate. You are an employee of Company A in Germany. You are also the owner of an EOOD in Bulgaria. These are distinct roles. Do not perform EOOD work during your employment hours, and do not use your employer's resources for the EOOD.

What You Need in Bulgaria

Running an EOOD while employed abroad means you will manage everything remotely. Here is what you need in Bulgaria to make that work.

Virtual Office (Registered Address)

Every EOOD must have a registered address (sedalishte i adres na upravlenie). Since you live abroad, a virtual office in Sofia is the standard solution. Cost: EUR 15-40/month depending on whether you need mail scanning, phone forwarding, or just a registered address. For details, see our guide on virtual office options in Bulgaria.

Bulgarian Accountant

This is non-negotiable. Your accountant handles all NRA filings, social security declarations (for any Bulgarian employees), VAT returns (if registered), annual financial statements, and the corporate tax return. All filings are in Bulgarian and submitted electronically. Monthly cost: EUR 100-300 depending on activity level and VAT status. See our breakdown of annual EOOD running costs.

КЕП (Qualified Electronic Signature)

A КЕП is mandatory for electronic filings with the NRA and Commercial Register. Your accountant needs it (or a power of attorney to use their own КЕП on your behalf) to submit anything. Providers include B-Trust, StampIT, InfoNotary, and Evrotrust. Evrotrust offers a mobile-based КЕП that is convenient for foreign-based owners. Annual cost: EUR 25-50.

Bulgarian Bank Account

The EOOD needs a corporate bank account in Bulgaria. Opening one remotely is possible but more complex — most banks require at least one in-person visit for KYC. DSK Bank and UniCredit Bulbank are the most common choices for foreign-owned EOODs. Monthly maintenance: EUR 5-15. Many owners also use Wise or Revolut Business for day-to-day operations.

Your Employer — Can They Prohibit It?

This is a question of employment law in your country, not Bulgarian law. Bulgarian law has no opinion on what your German or Dutch employer allows you to do in your free time.

Non-Compete Clauses

Many employment contracts contain non-compete or exclusivity clauses. These typically restrict you from working for a competitor or running a business in the same industry as your employer. If your EOOD operates in a completely different field from your employment, a non-compete clause generally does not apply. If the fields overlap, you need to review the clause carefully — or better yet, have it reviewed by an employment lawyer in your country of employment.

Notification Requirements

Some EU countries require employees to notify their employer of secondary business activities. In Germany, for example, the Nebentaetigkeitsanzeige (secondary activity notification) is common — your employer cannot unreasonably refuse, but they must be informed. In the Netherlands, many collective labor agreements (CAOs) contain similar provisions. Check your local rules.

Practical Advice

• Read your employment contract carefully. Look for non-compete, exclusivity, moonlighting, and secondary employment clauses.
• Do not use your employer's time, equipment, or resources for the EOOD. This is the fastest way to create a legitimate ground for termination.
• If in doubt, disclose. In most EU jurisdictions, running a transparent side business is protected. Running a secret one that your employer discovers — even if legally permitted — damages trust and can lead to termination for breach of the duty of loyalty.

Maternity, Sick Leave, and Employment Benefits

A common concern: "If I own an EOOD, will it affect my maternity leave or sick pay from my employer?"

Generally, no. Your employment-based social security benefits — maternity leave, sick leave, parental leave, unemployment insurance — are determined by the social security system of your country of employment. If your A1 certificate confirms that you are covered under, say, the German system, then German rules apply to all your social security benefits. Bulgarian EOOD ownership does not enter the picture.

However, there is one practical caveat: if you actively work for the EOOD during sick leave or maternity leave, your employer or their insurer may view this as evidence that you are not actually incapacitated or caring for a child — which could jeopardize your benefits. Owning an EOOD is fine. Actively running it while on sick leave is a different matter, and the rules depend on your country's labor law.

The safest approach: if you are on extended leave from your employer, have your Bulgarian accountant and virtual office handle everything passively. Avoid making active business decisions during a period when you are claiming inability to work.

Frequently Asked Questions

Disclaimer: This article provides general guidance on owning a Bulgarian EOOD while employed in another EU country. EU Regulation 883/2004 governs social security coordination; individual circumstances may vary. Bulgarian corporate income tax is 10% and dividend withholding tax is 5%, giving a combined rate of 15%. Double tax treaty provisions depend on the specific treaty between Bulgaria and your country of residence. This article does not constitute legal or tax advice. For personalized guidance specific to your country of employment and tax residence, consult a qualified professional. All amounts are in EUR. Last updated: April 8, 2026.